Looking to build an affordable Canadian stock mini-portfolio? Here are four stocks each of which you can easily put $400 into. For a combination of income, value, and growth, these are great stocks for long-term investors.
A fast-growing financial stock
If you want income and growth, EQB Inc. (also known as Equitable Bank) (TSX: EQB) is an interesting play. It has grown to become Canada’s seventh largest bank.
The company takes a unique approach. Its online-only banking and financing platform help deliver efficient and low-cost banking products for Canadians. It has also delivered sector-beating returns. EQB stock is up 178% over the past five years!
EQ has consistently been taking market share and utilizing its efficient platform to deliver above average earnings per share growth. It only yields 1.7% today, but it has grown its dividend by a 16.6% compounded annual growth rate (CAGR).
Canada’s top asset manager
With $850 billion of assets under management, Brookfield Asset Management (TSX: BAM) is one of the largest alternative asset managers in the world. It invests in everything from renewables to infrastructure to private equity.
BAM also has fast-growing insurance and credit platforms that could provide substantial growth in the coming years. It plans to grow fee-related earnings by a 17% CAGR over the next five years. That should translate into high teens earnings and cash flow growth.
BAM yields 3.1% today. The company plans to grow its dividend at the same rate as earnings. So there is attractive capital and income upside with this stock if you are patient.
A small-cap stock with big potential
If you are looking for a small cap stock with substantial upside, TerraVest Industries (TSX: TVK) is an intriguing pick. Its stock is up 344% over the past five years. It only has a market cap of $873 million, which suggests its stock could still grow considerably from here.
TerraVest acquires and operates niche industrial businesses (like heating, energy services, transport, and storage) across Canada and the U.S. These businesses tend to be acquired at cheap prices. TerraVest can use its operating expertise to create efficiencies, expand margins, and increase sales.
If you want growth in an unconventional space, this is a quality stock to hold for the years ahead. It also yields a 1.25% dividend.
A diversified growth stock
Calian Group (TSX: CGY) is another small cap stock that could deliver great long-term returns. It only has a market cap of $676 million today. Yet, the company has been growing both revenues and adjusted earnings per share by a respective CAGR of 17.7% and 10% over the past five years.
Calian is a diversified entity with operations in training, healthcare, cybersecurity, and satcom. It has a balanced mix of government and private clients.
After some recent acquisitions, it is expecting substantial double-digit growth in 2024. The market doesn’t yet appreciate this so it could be a good time to enter. CGY trades at an attractive valuation today. It also pays a decent 2% dividend yield.
The Foolish takeaway
If you want to build wealth, start quickly, contribute to your portfolio regularly, pick stocks in great businesses, and then hold on for the long run. It’s simple but it’s also a very successful formula for creating wealth over a lifetime.
