Wealthsimple provides online investment management services targeted towards millennials. However, the platform is open to all investors, regardless of age, investment experience, or income. Among the mobile apps many features, the stock investing and trading tools are the most popular.
Wealthsimple Invest, through robo advisors, constructs stock portfolios based on a user’s financial goals, objectives, and risk tolerance. The process is automated, has no human financial advisor, and charges lower fees. You can activate the dividend reinvestment feature to reinvest cash dividends.
Wealthsimple Trade is a commission-free trading platform that functions as a self-directed discount brokerage. You can take charge of your portfolio and trade stocks by yourself.
Canadian citizens and residents can open a Wealthsimple account. First-timers usually start with Wealthsimple Invest. If you’re investing today, Propel Holdings Inc. (TSX: PRL) and Wajax Corporation (TSX: WJX) are ideal prospects to hold on the platform. Besides their market-beating returns and potential, money growth is faster when you reinvest the dividends.
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Financial technology
Propel Holdings’ proprietary online lending platform provides credit solutions to Canadian and American customers with limited or inadequate access to credit. Besides several operating brands to reach more clients, the $312.4 million financial technology firm has artificial intelligence and underwriting capabilities.
As of this writing, this financial stock beats the broader market year to date, +27.7% versus +3.6%. The current share price is $9.10, while the dividend yield is a lucrative 4.48%. Given the 46.9% payout ratio, the quarterly payouts should be sustainable.
Management reported record performance in the second quarter and first half of 2023. In Q2 2023, revenue and net income jumped 33% and 183% respectively to $71.7 million and $5.7 million versus Q2 2022. On a year-to-date basis (six months that ended June 30, 2023), the top and bottom lines rose 31% and 123% year-over-year respectively to $137.3 million and $13.1 million.
Propel’s CEO, Clive Kinross, said the business returned to its robust originations in the second quarter after a typically seasonal first quarter due mainly to strong demand and new customer volume. He adds that AI delivers more accurate credit performance and drives profitability. Propel expects growth to accelerate as it builds a new world of financial opportunity.
Industrial distribution
Wajax provides products and services to various industries and serves nearly all core sectors of the Canadian economy. The $623.8 million company has customers in construction, energy, food and beverages, the oil sands, and renewables, among others. Notably, it has a strategic partnership with multinational conglomerate Hitachi.
In Q2 2023, consolidated revenue and net earnings increased 14.7% and 33.5% respectively to $586.2 million and $29 million versus Q2 2022. Wajax President and CEO Iggy Domagalski said, “Top-line growth was supported by sustained customer demand across all regions.” He adds the strong financial results and balance sheet give Wajax the flexibility to invest more in the expanded Hitachi relationship.
At $29.03 per share, the year-to-date gain is 51.3%. The 4.5% dividend yield is safe, too, given the low 31.8 payout ratio. Also, the industrial stock hasn’t missed a quarterly dividend payment since 2011.
Grade A stocks
Propel Holdings and Wajax are Grade A stocks in 2023. Both are excellent holdings you can start investing in through the Wealthsimple Invest platform.
