With a multitude of different stocks for investors to choose from around the world, finding no-brainer stocks in this environment is tricky, to say the least.
The good news is that on certain exchanges (such as the TSX), which may be less followed by big money investors, there are certain gems I would consider no-brainer stocks for those with a long-term investing time horizon. These are the sorts of companies that continue to provide strong total returns over very long periods of time and have the balance sheet capacity to continue funding growth and capital return to investors over time.
Without further ado, here are two of my top no-brainer stock picks for investors with a budget of less than $1,000 right now.
Restaurant Brands
Restaurant Brand (TSX: QSR) is a Canadian-based global network of quick-service restaurants. It gathers revenues from the lease income of its franchised stores, royalty fees, and company-owned restaurant operations. In addition, Restaurant Brand International owns a few popular chains like Burger King, Tim Hortons, Popeyes Louisiana Kitchen, and Firehouse Subs.
The company produces steady, growing cash flow as it expands globally. In addition, trading down from the average consumer toward more inexpensive meals will most likely offset any loss of pricing power and volume declines during the economic downfall.
In 2023, Restaurant Brands International strengthened its sustainability reports in various crucial areas. It includes reducing food waste and beef-related emissions, refining its greenhouse gas accounting methodology and increasing the use of renewable energy for electricity sourcing.
Fundamentally speaking, as an investor, you can like several things about how Restaurant Brands is positioned right now. For one thing, the company’s balance sheet still looks strong, with more than a billion dollars in available cash. Although the company has a high debt load, it can service this well and pays a great dividend yield of more than 3.3% at current levels. Hence, it is a must-buy stock under $1,000 on the Toronto Stock Exchange that can help you diversify your investment portfolio.
Suncor Energy
Suncor Energy (TSX: SU) is an integrated energy, Canada-based company operating in Canada and other parts of the world. It deals in synthetic crude, crude oil and natural gas, and petroleum refining and oil exploration. Suncor Energy is involved in developing and upgrading oil sands, onshore and offshore oil and gas production, and generating power through renewable energy sources.
Although the company witnessed a lower profit in the second quarter of 2024, it showed immense domination in its operational activities. Many analysts feel that the stocks will perform exceptionally well in the future, making it the right time to invest at this dirt price.
Suncor has had quite impressive momentum in recent weeks compared to the volatility of energy prices over the previous months. The company’s fundamentals have led to this rally and allowed it to trade around nine times earnings, which is relatively inexpensive compared to the rest of the energy names.
Regarding future investments, Suncor forecasts full-year capital expenditures between $6.3 billion and $6.5 billion and total upstream production at 770,000 to 810,000 thousand barrels per day. It stands on firm ground as the Canadian oil giant has competitively advantaged assets, a long oil sands reserve life of 26 years and regional/vertical integration courtesy of Petro Canada.
