You don’t need thousands of dollars to start investing in stocks. As and when you have money, you can buy stocks depending on your risk appetite and financial goal. First, make a list of the stocks you want to buy. Make sure the list has a mix of growth and dividend stocks and some riskier stocks. Set a target price range within which you would like to buy these stocks. And when you have liquidity, buy any of the stocks in your list that are trading in your target range.
Three no-brainer stocks to buy right now
And if none of the shares are within your range, here are three no-brainer stocks you can buy at any time. If you have $200 right now, you might want to consider investing in one or all three as they trade near their 2023 lows.
The oil and gas pipeline operator Enbridge (TSX:ENB) has been in the red throughout the year as the oil price normalized from last year. But the stock took a steeper dip after it announced the acquisition of Dominion Energy’s three gas utility businesses for US$9.4 billion in cash and agreed to take its US$4.6 billion debt. According to analysts, Enbridge is paying a hefty premium for gas utility companies, which offer little growth and stable earnings.
But from Enbridge’s perspective, it is looking to transition from oil to gas to strengthen its base for future dividend growth. Oil is declining as the energy sector is transitioning to low-carbon fuels. The gas utility business could help Enbridge support the slowing dividends from the oil pipeline. Moreover, the acquisition will be immediately accretive to Enbridge’s distributable cash flows, allowing it to maintain its dividend growth.
Now is a lucrative time to buy Enbridge shares below $47/share and lock in a high dividend yield of 7.6%.
Among the stocks to buy at the dip is the highly volatile business jet maker Bombardier (TSX:BBD.B). The aviation firm is in the middle of a turnaround. The share price has dipped more than 12.5% closer to $46. It may fall further as economic growth weakens and rising interest rates show signs of a recession. Most of its customers are corporates and high-net-worth individuals. They are not affected by inflation, but they are affected by a recession. Weak business conditions could delay orders. But Bombardier has the financial flexibility to withstand lower revenue and losses for two years as it has no significant debt maturing till 2025.
As for the operations, its aftermarket revenue can keep cash flowing within the company to pay for its expenses. But Bombardier has the potential to revive as the economy recovers and gives more than 50% capital appreciation in a growing economy. BBD.B is a high-risk growth stock you might want to buy and hold for at least four to five years for decent capital appreciation.
The third no-brainer stock to buy whenever it falls below $99 is Descartes Systems (TSX:DSG). The stock fell over 6% in the last few days as the TSX Composite Index fell over 3%. The stock of the logistics and supply chain management solutions provider moves in tandem with the economy. Growth in trade and consumer demand creates demand for logistics and supply chain solutions, bringing in higher revenue for Descartes.
The recent dip has nothing to do with Descartes’s fundamentals. Its revenue and earnings continue to grow. Only the growth rate is slowing. Thus, it is a buy when the economy slows and the stock price falls. As the economy revives after a few months, quarters or years, Descartes’s stock will bounce back.
The stock is in a long-term growth trend as it rides the global trade and e-commerce waves. Its end-to-end solutions, from trade intelligence to routing to custom compliance to inventory management, place the Global Logistics Network onto a single platform, bringing convenience and efficiency. Descartes is a stock you would want to buy at the dip and hold for five years or more to get decent capital appreciation.