Investing in stocks can help you create wealth in the long term. Moreover, one can start investing in stocks even with low capital. What’s important is to consistently invest in shares of fundamentally strong companies and stay invested for a long period.
So, if you plan to invest in stocks with $100, here are two no-brainer Canadian stocks to consider.
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Stock #1
The TSX has several high-quality stocks, one of which is Aritzia (TSX: ATZ). This luxury clothing company has a stellar track record of generating impressive sales and earnings, which has bolstered its share price.
For instance, Aritzia’s revenues have grown at a compound annual growth rate (CAGR) of 19% in the past five years. This was supported by solid e-commerce sales, which increased at a CAGR of 37% during the same period. At the same time, its adjusted net income grew at a CAGR of 13%.
Despite tough year-over-year comparisons, Aritzia’s sales grew at a healthy pace in Q4 (fourth quarter) of fiscal 2024. Its revenue increased by 7% in Q4, on top of the 44% growth registered in the prior-year period. This shows the company’s ability to attract shoppers even amid macro uncertainty.
Aritzia’s management expects its top line to increase at a CAGR of 15 to 17% through 2027, which implies that its growth rate will likely accelerate from current levels. Its focus on introducing new styles and applying data analytics and technology will likely optimize its product portfolio and accelerate its growth rate. Moreover, the opening of new boutiques augurs well for growth. Aritzia aims to launch 8 to 10 new boutiques annually through FY27.
The company plans to further benefit from enhancing its online customer experience by expanding omnichannel offerings and broadening its product range.
Overall, Aritzia’s focus on expanding its geographical footprint through new boutique openings and omnichannel offerings will likely boost its top line. All considered, higher sales, an improved inventory position, and operational efficiencies will drive its bottom line and bolster its share price.
Stock #2
Investors could buy Brookfield Renewable Partners (TSX: BEP.UN) stock for less than $100. This stock will enable investors to capitalize on energy transition opportunities. Brookfield Renewable Partners is a pure-play clean energy company that provides investors exposure to the renewable energy sector, which is likely to deliver enormous growth, driven by rapid adoption of green energy and increased investments to bolster capacity.
Brookfield operates power-generating facilities and provides decarbonization solutions. It owns a well-diversified portfolio of renewable power assets, including wind, solar, and hydroelectric. Brookfield Renewable Partners has almost 34,000 megawatts of renewable power operating capacity and an approximately 157,000-megawatt development pipeline. These attributes position it well to capitalize on growing demand.
It’s worth highlighting that most of Brookfield’s power output (about 90%) is under contractual arrangements. Moreover, 70% of its revenues are indexed to inflation, supporting organic growth. Further, its contracts have a long-weighted average remaining life of 13-plus years, which adds visibility and stability to its cash flows.
The company has been growing its funds from operations (FFO) at a double-digit rate, which enables it to enhance its shareholders’ return through higher dividend payments.
In summary, Brookfield Renewable Partners offers solid growth potential and will likely return cash to its shareholders with higher dividend payouts.
