Investing in inflation-beating asset classes such as equities helps you derive game-changing wealth over time. While investing in stocks might seem easy, it’s crucial to identify companies that enjoy a competitive moat, widening profit margins, and steady cash flows.
Here are five such TSX stocks where you can invest $500 right now.
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goeasy stock
Part of the financial lending industry, goeasy (TSX: GSY) has already returned over 1,000% in dividend-adjusted gains to shareholders in the past decade. Despite its outsized gains, GSY trades 26% below all-time highs, raising its dividend yield to 2.4%.
goeasy’s rapid growth has allowed the company to increase dividend payouts by more than 20% annually since 2014, which is remarkable for a cyclical company. Priced at 9.5 times forward earnings, GSY stock trades at a discount of 10% to consensus price target estimates.
Slate Grocery stock
A real estate investment trust, Slate Grocery (TSX: SGR.UN) offers you a tasty dividend yield of 9.2%. Part of the recession-resistant grocery sector, Slate Grocery pays shareholders a monthly dividend, as it generates stable cash flows across market cycles.
With $2.4 billion in total assets, Slate Grocery owns and operates a growing portfolio of grocery-anchored real estate in the U.S.
Enbridge stock
Another high dividend TSX stock, Enbridge (TSX: ENB) offers you a tasty yield of 7.2%. Enbridge is among the largest companies in Canada and operates in the energy infrastructure segment.
It owns and operates cash-generating assets that derive income across market cycles. As a majority of the company’s cash flows are tied to long-term contracts and indexed to inflation, Enbridge has raised dividends by 10% annually in the last 29 years.
Enbridge is a popular dividend stock due to its attractive yield, sustainable payout ratio, and robust balance sheet.
Nuvei stock
Nuvei (TSX: NVEI) is a fintech company growing at an enviable pace. Valued at $4.5 billion by market cap, Nuvei offers payment processing solutions to small and medium enterprises globally.
Unlike several other growth stocks, Nuvei reports consistent profits and is forecast to expand earnings from $2.25 per share in 2023 to $2.88 per share in 2024. Due to an expanding earnings base, Nuvei also pays shareholders an annual dividend of $0.54 per share, indicating a yield of over 1.6%.
Priced at 11 times forward earnings, NVEI stock trades at a discount of 25% to consensus price target estimates.
Information Services stock
The final TSX stock on my list is Information Services (TSX:ISV), valued at $420 million by market cap. The company provides registry and information management services for public data and records in Canada.
In the third quarter of 2023, ISV reported sales of $54.6 million, an increase of 12% year over year. Its top-line growth was attributed to customer and transaction growth in the Services segment combined with fee increases in the registry operations business.
Down 31% from all-time highs, the small-cap TSX stock offers you a forward yield of almost 4%. Priced at 12.6 times forward earnings, Information Services stock trades at a 20% discount to consensus price target estimates.
