5 Stocks You Can Confidently Invest $500 in Right Now

These companies consistently generate solid financials, and their stocks outperform the broader equity markets.

| More on:
young woman celebrating a victory while working with mobile phone in the office

Image source: Getty Images

Investors planning to invest in stocks to create wealth in the long term should focus on shares of companies with solid fundamentals, including durable revenue growth and the ability to generate sustainable earnings. Since these companies consistently generate solid financials, their stocks outperform the broader equity markets in the long term.

With this backdrop, let’s look at five Canadian stocks you can confidently invest $500 in right now. 

Alimentation Couche-Tard 

Investors planning to buy stocks could consider investing in the shares of Alimentation Couche-Tard (TSX:ATD). This convenience store operator operates a low-risk business, consistently generating strong revenue and earnings growth. For instance, over the past decade, its top and bottom lines have grown at a compound annual growth rate (CAGR) of 7.3% and 18.8%, respectively. Moreover, the company has increased its dividend at a CAGR of 26.6% during the same period. 

Thanks to its strong financials, Couche-Tard stock has delivered an impressive average annualized return of over 20% in the past decade. Looking ahead, its extensive store presence, large addressable market, focus on expanding private label offerings, distribution optimization, and entry into new categories will support its growth and share price. 


Financial services company goeasy (TSX:GSY) could be a solid addition to your portfolio. The company provides loans to nonprime borrowers and has been growing rapidly over the past decade. goeasy’s revenue has a 10-year CAGR of 17.7%. At the same time, its earnings per share (EPS) grew at a CAGR of 29.5%. Also, it has increased its dividend for nine consecutive years. 

Thanks to its stellar financial performance, goeasy stock has appreciated about 1,139% in the past 10 years. goeasy is poised to benefit from the large subprime lending market, its strong competitive positioning, loan growth, and stable credit performance. Further, operating efficiency will cushion its bottom line and drive dividend payments.

Canadian Natural Resources

Next are the shares of Canadian Natural Resources (TSX:CNQ). The energy company has steadily generated solid capital gains and returned significant cash to its shareholders through higher dividend payments. For instance, Canadian Natural Resources stock has gained more than 217% in the last five years. Moreover, it has increased its dividend for 24 consecutive years. 

The energy company’s diversified assets and high-value reserves will drive its financials in the coming years. Further, its focus on increasing production from long-life oil sands mining and reducing downtime augurs well for growth. Also, its low debt-to-adjusted funds flow ratio and strong balance sheet position will likely support its growth initiatives. 


Dollarama (TSX:DOL) is another reliable stock to invest in all market conditions. The retailer is known for selling products at low and fixed price points. This enables it to drive traffic even amid economic downturns. Thanks to its low-risk business model, Dollarama stock remains less volatile. Further, its high growth rate drives its share price higher. 

Dollarama’s value pricing strategy, extensive domestic store network, focus on lowering merchandise costs, and direct sourcing could continue to drive its financials and share price. At the same time, it will likely enhance its shareholders’ value through increased dividend payments.


Shopify (TSX:SHOP) is the final stock on this list. While Shopify stock has lost substantial value from its peak, it remains well-positioned to capitalize on the ongoing shift towards omnichannel selling models. Notably, Shopify’s dominant competitive positioning in the e-commerce space, durable revenue growth rate, and higher adoption of its products augur well for growth. 

Further, Shopify’s transition toward an asset-light business model, new product launches, and focus on delivering profitable growth supports its bull case. Meanwhile, its take-rate expansion and go-to-market improvements are encouraging. 

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alimentation Couche-Tard and Shopify. The Motley Fool recommends Canadian Natural Resources. The Motley Fool has a disclosure policy.

More on Investing

analyze data
Dividend Stocks

2 Dividend Stocks I’d Buy if They Fall a Bit

Consider buying Brookfield Asset Management (TSX:BAM) and another top stock on a larger pullback.

Read more »

Man holding magnifying glass over a document
Stocks for Beginners

Watching This 1 Key Metric Could Help You Beat the Stock Market

This data marker can tell you exactly what you can expect from the future of companies, and whether that's a…

Read more »

Payday ringed on a calendar
Dividend Stocks

TFSA Investors: 2 of the Best Monthly Dividend TSX Stocks to Buy Right Now

Create a monthly tax-free income stream in your TFSA by investing in these two TSX dividend stocks that pay investors…

Read more »

edit Colleagues chat over ketchup chips

3 Defensive TSX Stocks for Lower-Risk Investors

These three Canadian stocks could be great picks for a defensively minded investor.

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

3 Top Canadian Dividend Stocks to Buy Under $30

Given their stable cash flows and healthy dividend yields, these three dividend stocks are excellent additions to your portfolio.

Read more »


3 Top Reasons to Buy Great-West Lifeco Stock After its Q4 Earnings

These factors make GWO stock attractive for investors looking for a fundamentally strong, dividend-paying stock from the financial sector.

Read more »

money cash dividends
Dividend Stocks

Beat the Dow Jones With This Cash-Gushing Dividend Stock

Here's why this high-dividend TSX stock should beat the Dow Jones index in 2024 and beyond.

Read more »

Pixelated acronym REIT made from cubes, mosaic pattern
Dividend Stocks

The Top Canadian REITs to Buy in February 2024

Are you looking to boost your income and buy some stocks at a bargain? Here are three top REITs that…

Read more »