Investing in stocks is one of the most effective ways to build long-term wealth. The good news is that you don’t need a large sum of money to get started. In fact, with a small but consistent investment—say, around $200 a month—you can gradually build a solid portfolio that generates impressive returns over time.
With that backdrop, let’s explore three no-brainer Canadian stocks you can consider buying right now with just $200. These stocks have solid growth potential, making them top choices for investors looking to grow their money.
No-brainer stock #1
Canadian Natural Resources (TSX:CNQ) is a solid stock for investors seeking growth and income. The oil and gas company has a fundamentally strong business with a growing earnings base, which drives its share price and dividend payouts.
It’s worth noting that Canadian Natural Resources stock has delivered an average annual return of over 27% in the last five years, resulting in a total capital gain of about 237%. In addition, the company steadily increased its dividend by an average of 21% annually over the last 24 years.
The company’s diverse portfolio of assets helps mitigate risk and optimize capital investments. Its long life, low-decline production assets, and low reserve replacement costs drive its adjusted funds flow across all commodity price cycles.
Canadian Natural Resources’s conventional asset base includes a substantial inventory of low-capital projects that offer attractive returns. Its vast, underdeveloped land base supports extensive and repeatable drilling programs, providing additional growth potential. Moreover, its strong balance sheet positions the company to invest in growth initiatives and drive long-term shareholder value.
No-brainer stock #2
Speaking of no-brainer stock, Hydro One (TSX:H) could be a smart choice for growth, stability, and income. This utility company focuses on electricity transmission and distribution, which has helped it consistently deliver attractive returns through capital gains and higher dividend payments.
What sets Hydro One apart from other utilities is that it only transmits and distributes electricity, meaning it is not exposed to power generation or commodity price volatility. This business model allows Hydro One to generate stable, low-risk earnings and predictable cash flow.
Hydro One has solid financials, which allow the company to fund growth initiatives without raising capital from external sources.
Hydro One projects its rate base to increase by 6% annually through 2027. This expansion will drive its low-risk earnings, dividend payouts, and share price. Notably, its earnings per share are forecasted to increase by 5-7% annually. Moreover, Hydro One plans to grow its dividend by 6% annually in the medium term.
No-brainer stock #3
Investors seeking no-brainer stocks could consider Bombardier (TSX:BBD.B), a business jet manufacturer. Bombardier continues to perform well as a business jet manufacturing leader, thanks to its refreshed lineup of medium and large business jets, which are in high demand. Moreover, Bombardier’s focus on boosting profitability and reducing debt positions it for sustainable long-term growth.
Bombardier isn’t just relying on new jet sales. It’s strategically diversifying its revenue streams across services, defence, and the pre-owned aircraft market. This approach should improve profitability and make the company’s future earnings more predictable. In fact, by 2030, these segments could contribute up to 50% of its total revenue.
Bombardier expects its services segment to grow at mid to high single digits annually through 2030. Moreover, its defence business is likely to generate revenue between $1 billion and $1.5 billion by 2030. Bombardier is expanding its presence in the pre-owned aircraft market. This market provides a reliable revenue stream, with the company expecting it to generate between $500 million and $1 billion by 2030.
The company is also focused on strengthening its financial position by optimizing its balance sheet, improving liquidity, and reducing debt. This financial discipline and revenue diversification will help the company navigate economic challenges and maintain a strong growth trajectory.
