There is no “rule” forbidding investors from investing in dividend stocks when they have relatively limited capital. Many investors use small chunks of capital to enhance their dividend-oriented positions, especially if they can lock in a good yield.
However, a considerable number of investors seek growth stocks when working with an amount like $1,000. Three picks might appeal to a broad range of investors, from bold to conservative.
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A satellite company
Ottawa-based Telesat (TSX: TSAT) is a small-cap company with a market capitalization of about $427 million. The company operates a satellite fleet and offers various satellite-based solutions to different industries and the government. It currently has 198 Low-Earth Orbit (LEO) satellites in space and 14 Geostationary (GEO) satellites.
While the company is quite old (1969), the stock is new and only started trading on the TSX in 2021. It started with a solid price of nearly $50 per share, but it has been in constant decline since then. The stock is currently trading at a 76% discount to its original listing price, and apart from a solitary spike, bullish momentum has been rare.
However, as a satellite company, its services might be highly coveted shortly. One domain where its growth might be prominent is the intersection of the internet and satellite technology.
A crypto company
If you want to invest in cryptocurrency in Canada, crypto stocks like Galaxy Digital Holdings (TSX: GLXY) might be a better alternative to crypto assets. Unlike crypto, they can be held in registered accounts, and with the right market catalysts in place, they may offer growth comparable to crypto assets.
The stock itself is a great example, even though it doesn’t offer direct exposure to cryptocurrencies like publicly traded miners do. It has risen almost 49% since the beginning of the year, and the trajectory is still upward. An even more appealing aspect of the stock is its undervaluation, reflected by a price-to-earnings ratio of just 3.1.
A bank
For investors who wish to play it safe with their $1,000 capital, National Bank of Canada (TSX: NA) is one of the many tasteful options. Most bank stocks offer decent yields and reliable payouts, and while this bank lags a little behind its larger peers in the yield department, it makes up for its growth potential. The stock rose by over 140% in the last 10 years.
The yield, while lower compared to other banks, is not low per se at 3.9%. The valuation is decent as well. The overall return potential of the bank is quite substantial and its dividends, like the rest of the banking sector, are reliable.
Foolish takeaway
If you have $1,000 to invest right now, you can choose any one of the three stocks or divide your capital into the three companies to get a good mix of safe growth, rapid growth, and future growth potential, with some dividends tossed in.
