2 Top Stocks to Buy With $500 Today

Investing in the stock market does not always require massive capital. You can begin with just $500 allocated to stocks like these two.

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Investing in the stock market is not always about investing several thousand at a time. If you do it right, as little as $500 can also help you get a good start on stock market investing. With the stock market being as volatile as it has been in 2023, it is not difficult to find top-quality TSX stocks trading at a discount right now.

While risk-averse investors do not enjoy bear markets, the volatility has allowed savvier investors to leverage several long-term opportunities. Even as the year ends, nobody can predict what will happen in the stock market in the coming weeks. That said, it seems that the year is more likely to end on a better note than it started for stock market investors.

As of this writing, the S&P/TSX Composite Index is up by 4.79% year-to-date. While not without its ups and downs, the recent upward movement in the Canadian benchmark index suggests some positive sentiment. If you have $500 to invest in the stock market right now, these two TSX stocks are worth keeping on your radar as possible investments.

Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS) is a $71.6 billion market capitalization Canadian multinational banking and financial services company. Headquartered in Toronto, it is one of Canada’s Big Six Banks.

As one of the top Canadian bank stocks, Scotiabank stock also enjoys the reputation of being a reliable dividend stock. Scotiabank has been paying its investors their shareholder dividends since July 1, 1833. That is almost two centuries of paying dividends regularly.

Unlike its peers in the Big Six, Scotiabank has an immense presence in the Latin American market through the bloc comprising Mexico, Colombia, Chile, and Peru. The market has attractive long-term growth potential as its middle class expands.

Additionally, the new CEO at Scotiabank has been busy revamping the senior management team in an effort to drive more revenue growth and increase shareholder value. As of this writing, Scotiabank stock trades for $60.26 per share, paying its investors their distributions at a juicy and inflated 7.04% dividend yield.

Lightspeed Commerce

Lightspeed Commerce Inc. (TSX:LSPD) is a beaten and battered $3.5 billion market capitalization giant in the Canadian tech sector. The point-of-sale and e-commerce software provider headquartered in Montreal has a cloud-based commerce platform supporting omnichannel transitions.

Primarily catering to small- and medium-sized businesses, it has launched several specialized solutions for clients in the hospitality and retail sectors.

As the selling model continues shifting to multi-channel commerce platforms, Lightspeed stock continues to cement itself as a leading player in this market.

With a revamped go-to-market strategy, Lightspeed stock will now target high Gross Transaction Value (GTV) clients to boost its revenues and streamline operations. As of this writing, Lightspeed Commerce stock trades for $22.63 per share, down by over 85% from its all-time high. It can be an attractive investment to consider for your self-directed portfolio.

Foolish takeaway

For the risk-averse investor, investing in a bank stock might make a lot of sense. Reputably reliable dividend stocks, Canadian bank stocks are safer investments than tech stocks.

That said, the solid growth potential combined with a cheap valuation makes Lightspeed Commerce an attractive investment to consider. While still risky, it can inject growth into your self-directed investment portfolio in a bull market.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Bank of Nova Scotia and Lightspeed Commerce. The Motley Fool has a disclosure policy.

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