Equities have the potential to deliver significant returns, especially for investors with a long-term investment horizon. Moreover, one doesn’t need a lot of capital to enter the stock market, as numerous stocks with solid fundamentals and the potential to deliver stellar gains are currently available well below $100.
But before I move ahead and discuss stocks, it’s crucial to emphasize that selecting stocks should not solely hinge on their lower dollar value.
With this backdrop, let’s look at three no-brainer Canadian stocks to buy with $100 right now.
Telus
Telecom giant Telus (TSX: T) can be a solid stock for long-term investors. The company has a solid history of delivering profitable growth, which enables it to consistently enhance its shareholders’ returns through share buybacks and higher dividend payments and fund its growth initiatives.
It’s worth highlighting that Telus’ aggressive investments in wireless and wireline network technologies and national broadband network leadership drive its customer base. Further, it supports its average revenue per user (ARPU) and reduces churn rate. Thanks to its solid financial and operating performance, Telus raised its dividends 25 times under its multi-year dividend-growth program, which started in 2011. It has distributed over $24 billion to its shareholders since 2004, including over $19 billion in dividends. Further, Telus plans to grow its annual dividend by 7-10% through 2025 and offers a juicy yield of about 5.7%.
Looking ahead, its significant broadband network capabilities and expansion of 5G services will grow its customer base and increase ARPU. Moreover, its focus on improving efficiency will cushion its earnings.
Lightspeed
Lightspeed (TSX: LSPD) stock has gained over 16% so far in 2023. However, shares of this technology company are still trading at a substantial discount from their highs. This has driven its valuation lower, which is near an all-time low. While Lightspeed stock is trading cheap, its financial performance remains strong, supporting a bullish outlook.
The company is poised to benefit from the shift in selling models towards multi-channel platforms. This will lead merchants to upgrade their traditional payment systems, driving demand for its payment solutions. Further, increased investment in technology by small- and medium-sized retailers and restaurant operators will likely bolster the demand for Lightspeed’s products.
Additionally, the company strategically focuses on expanding its customer base with high gross transaction value (GTV). Customers with high GTV are more likely to adopt its multiple modules. Thus, it will drive its organic revenue growth by improving ARPU and reducing customer churn. Further, the company’s focus on accretive acquisitions will expand its customer locations and product portfolio, positioning it well to deliver strong growth in the coming years.
Well Health
WELL Health Technologies (TSX: WELL) stock is too cheap to ignore near the current levels. This digital healthcare company has been performing well despite the reopening of the economy and macro headwinds. The company’s success reflects its ability to drive omnichannel patient visits.
Remarkably, WELL Health has achieved its 19th consecutive quarter of record revenue, demonstrating consistent financial strength. The company is actively pursuing profitable growth strategies. In addition, it expects to surpass $900 million in annual revenue by 2024 through organic expansion, which is a positive development.
In addition to organic growth, WELL Health is strategically enhancing its market footprint through accretive acquisitions. Moreover, the company’s investments in artificial intelligence and introducing new products will likely accelerate its growth and bolster its stock price.
