Canadian investors looking for cheap stocks may find there are far too many to consider. After all, one can find everything from penny stocks to blue-chip companies on the TSX under $50 per share.
However, if you want companies that can provide you with growth now and in the future, you may want to find companies that are established, but not top of mind. So today, let’s go over three spectacular choices to consider.
EIF stock
Exchange Income (TSX: EIF) is the first of the stocks Canadian investors may want to consider. Exchange Income Corporation has demonstrated a strong track record over the years. The company, established in 2002, focuses on acquiring profitable, well-established companies in the aviation and manufacturing sectors. This diversified approach has contributed to steady growth and resilience in varying market conditions.
One of the key reasons to consider EIF is its robust financial performance. EIF reported revenue of $450 million, a 10% increase year-over-year. Net income was $45 million, up from $40 million in Q1 2023, showcasing the company’s ability to generate increasing profits.
What’s more, EIF is known for its attractive dividend yield. The current dividend yield stands at around 5.5%, making it an appealing choice for income-focused investors. The company has a history of stable and growing dividend payouts, which is a testament to its cash flow stability and commitment to returning value to shareholders.
Sienna stock
Another top choice for long-term growth is Sienna Senior Living (TSX: SIA). Sienna Senior Living has consistently delivered steady performance, underscored by its resilient business model and strategic growth initiatives. Over the past five years, SIA’s stock has provided a reliable return, supported by its strong operational focus and commitment to providing quality senior care services.
Sienna Senior Living’s recent earnings releases highlight its solid financial health and operational efficiency. SIA reported revenue of $185 million, up 5% year-over-year. Net income for the quarter was $18 million, compared to $16 million in Q1 2023. This growth demonstrates SIA’s ability to generate increasing profits and manage costs effectively.
Furthermore, the company’s occupancy rates have been improving steadily, reaching 88% in its long-term care segment and 84% in its retirement segment. And with a 6.3% dividend yield on hand, it looks like a strong winner.
First Capital
Finally, First Capital Mortgage Investment (TSX: FC) is another strong buy. Over the past decade, FC has demonstrated resilience and growth, driven by its high-quality urban retail properties and strategic locations in major Canadian cities.
As for earnings, FC reported revenue of $220 million, a 7% increase year-over-year. Net income for the quarter was $55 million, compared to $50 million in Q1 2023. This growth reflects the company’s successful execution of its strategic initiatives and effective cost management. FC’s funds from operations (FFO), a key measure of performance for real estate companies, increased by 8% to $0.30 per share in Q1 2024. This improvement underscores the company’s ability to generate stable and growing cash flow from its operations.
The company remains a stable option, as FC’s properties are strategically located in urban areas with high population density and strong economic activity. These locations ensure a stable and growing tenant base, contributing to consistent rental income and long-term value appreciation.
FC has an active development pipeline, including several mixed-use projects that will enhance its portfolio and drive future growth. These projects are expected to add significant value and diversify the company’s revenue streams. That should easily support the company’s 8.2% dividend yield. Altogether, these three stocks can bring in serious income even under $50 per share.
