If you are new to it, you might not think $500 is enough capital for a successful investing strategy. By identifying the right assets, you can grow your capital with even the smallest amount invested in the stock market. To do it successfully, one way is to invest in top-quality stocks that offer stability and long-term growth potential.
After considerable volatility throughout the year, the Canadian stock market appears to be gaining momentum again. Despite a November marked by a rising equity market, several high-quality TSX stocks still trade at attractive levels.
As the year ends, investor sentiment is improving, and there are several high-quality stocks available at discounted prices. When the bull market comes in, many of them can soar to greater heights while outperforming the broader market.
Today, we will look at two Canadian stocks with the potential to deliver market-beating returns in 2024.
Telus (TSX:T) is a $36.92 billion market capitalization Canadian telecommunications giant. Headquartered in Vancouver, it is one of the biggest telecommunications companies in the country, with several other subsidiaries in agriculture, healthcare, and other sectors. As of this writing, Telus stock trades for $25.31 per share, down by 12.96% from its 52-week high.
Considering how well its core mobile and internet services businesses in Canada have performed this year, the downturn is arguably overdone. After one of its subsidiaries saw its revenue decline, Telus reduced its financial guidance in 2023.
Additionally, the company also resorted to cost-cutting measures to improve its financial position. Despite weakness in one of its subsidiaries, Telus stock looks set to increase its consolidated revenue in 2023 by 9.5% compared to last year. It can be a good addition to your self-directed portfolio.
goeasy (TSX:GSY) is a $2.32 billion market capitalization company that offers alternative financial services. Headquartered in Mississauga, goeasy operates three businesses that offer loans to subprime lenders.
As of this writing, goeasy stock trades for $139.57 per share, just below its 52-week high mark of $140.10 per share. Year to date, goeasy stock has outperformed the TSX by a massive margin. goeasy stock gained 31.77%, year to date. In the same period, the S&P/TSX Composite Index is up by just 4.79%.
After delivering market-beating returns, the company continues to perform well. goeasy is adjusting its affordability calculations, underwriting requirements, and credit thresholds across its different products to minimize the risk to itself.
Additionally, its growing loan originations, cross-selling opportunities, and omnichannel offerings can help it continue expanding its loan portfolio. Besides its immense capital gains, GSY stock pays its investors their quarterly distributions at a 2.75% dividend yield.
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Between the high-yielding dividends from Telus stock and the growth potential of goeasy stock, these two companies can be excellent investments to consider for your portfolio. With the reliable dividend income from Telus stock, you can enjoy steady returns.
Due to the importance of subprime lending in today’s market, goeasy stock can grow shareholder value through capital gains. Additionally, its nine-year dividend-growth streak also makes it an attractive investment to consider.