3 Stocks Under-$50 New Investors Can Buy Confidently

These Canadian companies can consistently deliver profitable growth, offer regular dividends, and have promising growth potential.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you’re new to investing, consider choosing stocks with solid fundamentals. Look for companies with strong business models that consistently deliver profitable growth, offer regular dividends, and have promising growth potential. The good news is that you don’t need a large sum of money to get started. Even investing a small amount—like $50—can help you begin building a portfolio of high-quality, reliable stocks.

Against this backdrop, let’s explore three Canadian stocks trading under $50 with solid growth potential and commitment to enhancing shareholders’ value.

Canadian Natural Resources

New investors could consider adding Canadian Natural Resources (TSX:CNQ) stock. This oil and gas producer is known for consistently delivering solid financials, making it a reliable choice for investors to generate steady dividend income and capital gains.

Shares of this energy giant have appreciated over 282% in the last five years, outpacing the broader equity markets by a wide margin. Besides capital gains, Canadian Natural Resources enhanced its shareholders’ value by consistently increasing its dividends for 24 years. Moreover, Canadian Natural Resouces’s dividend grew at a compound annual growth rate (CAGR) of an impressive 21%.

Created with Highcharts 11.4.3Canadian Natural Resources PriceZoom1M3M6MYTD1Y5Y10YALL6 Apr 20203 Apr 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '2520212021202220222023202320242024202520250102030405060www.fool.ca

Canadian Natural Resources is well-positioned for continued growth. The company’s long-life asset base, high-value reserves, and low-maintenance capital will likely support its earnings and cash flows. In addition, the company’s disciplined capital-allocation strategy and strong balance sheet will further support its growth initiatives, drive future dividend payments, and boost its share price.

In summary, Canadian Natural Resources’s solid financials, growth potential, and commitment to enhancing shareholder returns make it a solid investment option, especially for those just starting their investment journey.

Hydro One

Hydro One (TSX:H) could be another solid bet for new investors. This company, engaged in electricity transmission and distribution, is well-known for generating attractive capital gains while paying consistent dividends.

The utility company focuses on electric power transmission and local distribution without involvement in power generation or exposure to fluctuating commodity prices. This enables Hydro One to generate low-risk earnings and stable cash flows. Further, it earns 99% of its income from regulated assets, implying its steady earnings growth and resilient payouts.

Created with Highcharts 11.4.3Hydro One PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Hydro One maintains a solid financial position, enabling it to fund growth initiatives without needing additional external equity.

Hydro One expects its rate base to grow at a CAGR of 6% through 2027. This growth will support earnings expansion of 5-7% per year, along with a projected annual dividend increase of 6% during the same period.

With its low-risk business model, predictable cash flows, steady growth, and ability to deliver both dividends and capital gains, Hydro One is an excellent stock for new investors seeking a reliable and long-term opportunity.

Brookfield Renewable Partners 

Brookfield Renewable Partners (TSX:BEP.UN) is a solid long-term stock that offers new investors exposure to the promising renewable energy sector. As a pure-play clean energy company, Brookfield is poised to benefit from the global shift toward sustainable energy sources.

Brookfield’s highly diversified portfolio of renewable assets and growing power generation capabilities position it well to capitalize on green energy demand. Further, most of Brookfield’s power output is secured under long-term contracts, providing stable and predictable revenue. Notably, most of its contracts are indexed to inflation, meaning the company enjoys steady organic growth as prices rise.

Created with Highcharts 11.4.3Brookfield Renewable Partners PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Brookfield has consistently grown its funds from operations (FFO) at a double-digit pace, supporting higher dividend payments. The company will continue returning cash to its investors, and with FFO growing, Brookfield could raise dividends further. Notably, Brookfield projects annual dividend growth of 5-9% in the coming years. Moreover, it offers a high yield of over 5.9%.

In summary, Brookfield Renewable Partners has solid growth potential and offers a growing dividend income.

Should you invest $1,000 in goeasy right now?

Before you buy stock in goeasy, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and goeasy wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners and Canadian Natural Resources. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

a person watches a downward arrow crash through the floor
Dividend Stocks

Is This Correction Your Chance? Top 4 Canadian Dividend Stocks on Sale

Stocks may be down, but now is your chance to get some of these top dividend stocks on sale.

Read more »

Confused person shrugging
Dividend Stocks

Where to Invest $2,500 in the TSX Today

These TSX stocks offer attractive dividends and a shot at decent upside on a rebound.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

Invest $25,000 in These Dividend Stocks for $1,956.66 in Annual Passive Income

Dividends stocks can make a huge difference, even if shares don't move an inch. And these might be the best.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

Got $5,000? 5 Income Stocks to Buy and Hold Forever

These income stocks have a solid dividend-payout history that can help you earn stress-free passive income.

Read more »

grow money, wealth build
Dividend Stocks

Why I’d Invest $10,000 in This Undervalued Dividend-Growth Stock for Decades of Income

This undervalued dividend stock offers a high yield of over 8% and can help you earn more than $200 in…

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Here’s Exactly How a $20,000 TFSA Could Potentially Grow to $200,000

Index funds like the iShares S&P/TSX Capped Composite Index (TSX:XIC) are tax free in a TFSA.

Read more »

Dividend Stocks

How I’d Invest $6,000 in Canadian Real Estate Stocks to Build Lasting Wealth

Canadian REITs on sale! See how grocery-anchored retail properties offering 9% yields could turn $6,000 into lasting wealth despite US…

Read more »

rain rolls off a protective umbrella in a rainstorm
Dividend Stocks

Economic Headwinds: Should You Still Consider Buying the Dip?

A market dip might seem like a bumpy road, but it can be far smoother in the future with the…

Read more »