There are plenty of great TSX stocks under $100 on the market. Even better, many of those great stock picks can provide a growing source of income that can last well into retirement.
Here’s a look at three of those TSX stocks under $100 that should be core parts to every portfolio.
Option #1: The insane yield
Most investors know about Enbridge (TSX:ENB). The energy infrastructure behemoth has its tentacles in multiple segments of the energy sector. That includes a growing renewable energy business and a natural gas utility, which is in addition to its pipeline business.
Enbridge’s defensive appeal allows it to invest in growth and still pay out a juicy dividend. As of the time of writing, Enbridge trades at just over $48. This means that investors who can drop just $100 will buy two shares this month, or 24 shares if you can keep that cadence up for a year.
You can’t retire on the income provided by those 24 shares, but you can earn two more shares through reinvestments each year. In other words, Enbridge can become a great buy-and-forget option to grow on autopilot.
Keep in mind that’s not factoring in growth. The yield on Enbridge’s dividend currently works out to an insane 7.59% and the company has provided annual upticks to that yield for three decades without fail. This makes Enbridge one of the TSX stocks every investor needs to buy this month.
Option #2: The discounted pick with an even higher yield
If you’re an investor who thought Enbridge was one of the great TSX stocks under $100 thanks to its crazy yield, then you’ll love BCE (TSX:BCE). BCE is one of the largest telecoms in Canada.
Telecoms generate a reliable and recurring revenue stream that comes thanks to subscription-based services. Those services include wireline, TV, wireless, and internet services.
Interestingly, in the years since the pandemic, the latter two have grown in importance, becoming a necessity for most. That necessity, in conjunction with the impact of rising interest rates, has bolstered what is already a great defensive pick into a screaming discounted buy.
The rapid rise of interest rates led to BCE slashing costs. This pushed the stock price down a whopping 27% over the trailing 12-month period. As a result, BCE now trades at just over $43, which means that, like Enbridge, investors can scoop up a pair of shares for just $100.
That discounted stock price also means that BCE’s yield has soared. As of the time of writing, the quarterly dividend offers an incredible 9.21% yield.
Prospective investors who buy BCE this month can collect a juicy yield to hold them over until interest rates cool down and BCE’s stock price recovers.
Option #3: The big bank still under $100
Canada’s big banks are always shortlisted as some of the best TSX stocks to buy. Fortunately, Canadian Imperial Bank of Commerce (TSX:CM) is the one big bank that is still under $100.
To be clear, there’s more to love about CIBC than its stock price. And unlike BCE, which is heavily discounted, CIBC is on a tear recently, up 17% over the trailing 12 months.
CIBC is one of the smaller big banks. As such, it lacks the massive international footprint of its peers. This means that the bank has a larger mortgage book when compared to its peers.
And when interest rates started soaring back in 2022, fears about those mortgages caused the bank’s stock price to drop. Coincidentally, within a few months of interest rates starting their ascension, CIBC completed a stock split.
Fast forward to today and CIBC is in a different position. Rates are beginning to fall. The mortgage book fears were unfounded, and CIBC still trades south of $100.
The bank also pays out a juicy quarterly dividend, which boasts a yield of 5.47%.
The TSX stocks under $100 you need to buy
No stock is without some risk, and that includes the three stocks mentioned above. Fortunately, the three above stocks offer some defensive appeal to offset that risk.
They also offer juicy dividends, which, in my opinion, make them great options for any long-term, diversified portfolio.
