When looking for stocks to buy with a limited amount of capital (say $50), it’s usually a good idea to go with growth stocks.
The small amount of capital means that your risk would be relatively limited, and if the stock meets your growth projections, you may be able to turn that small amount of capital into a relatively decent sum. Besides, buying a couple of shares just for their dividends may not be a viable investment strategy.
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A telecom giant
Telus (TSX: T) may not be the top 5g stock in Canada, but it’s easily one of the best telecom companies you can add to your portfolio, even if you buy just a few shares with $50 in capital.
It offers a healthy blend of dividends and growth potential, and the latter is significantly more potent than for the other three telecom giants in the country. The stock is also discounted right now (11.4%), but it’s already on the recovery journey.
There are several reasons why Telus is a great pick from the sector, including its diversified business model and ventures outside the conventional telecom industry fold. This includes its position as a leading telehealth services provider in Canada and one of the most prominent names in smart home security.
A utility company
While utility and power generation companies are usually considered safe, Algonquin Power and Utilities (TSX: AQN) managed to defy investor expectations in the wrong way. It slashed its dividends by a significant margin and had to sell off part of its businesses to make up for some of the past financial management mistakes it made.
As a result, the stock experienced a massive slump and is currently trading at a 62% discount from its five-year peak.
This discount is one of the most compelling reasons to buy this stock. It’s a solid investment considering its assets and geographic reach (even if you take its financial weaknesses into account). If it starts going up based on these fundamentals, the recovery alone might be enough to double your investment.
An EV company
NFI Group (TSX: NFI) is one of the few Canadian EV companies that focus on zero-emission mass-transit solutions – that is, buses. Its primary product line is EV buses and coaches, but it also offers complementary solutions, such as infrastructure and diagnostics. It’s one of the leading names when it comes to EV buses, and it’s not just in Canada.
Its buses are in 13 countries and 150 cities (or will be present when the current orders are delivered). It has also provided services to over 100,000 EVs. Most impressively, it has a production capacity of 8,000 buses a year, so when mass adoption of EV buses happens (school, public transport, etc.), NFI would be one of the leading names to meet the demand.
Foolish takeaway
Thanks to their focus on renewable energy sources, both NFI Group and Algonquin are worth considering from an ESG investing perspective as well. All three stocks can make a fine addition to your portfolio, especially if they can deliver on their short-term recovery and long-term growth potential.
