Got $100? 2 Top Canadian Stocks to Buy and Hold

Don’t let a lack of funds keep you from making more! Instead, start saving slowly and turn that into killer cash.

| More on:
A worker uses a double monitor computer screen in an office.

Source: Getty Images

Even saving just $100 a month can create long-term wealth when invested. With an average return of 7% annually, that modest investment could grow to over $120,000 in 30 years! The key to wealth building is consistency and letting your investments compound over time. Even small amounts add up when invested wisely. And with the right Canadian stocks, investors can turn it into a boatload in savings.

Get started

To get started, Canadians can begin by setting aside small amounts by cutting out unnecessary costs, like that daily coffee or extra streaming subscription. Using the snowball method, you can start with smaller investments and gradually increase them as you free up more cash. Automating these savings is another smart way to ensure you stick to your plan, allowing your money to grow effortlessly over time.

From there, start out with something easy like an exchange-traded fund (ETF). Canadians looking for a safe and steady investment can consider iShares Canadian Financial Monthly Income ETF Common Class (TSX:FIE) on the TSX as a great choice. With a current yield of 6.32% at writing and strong year-to-date returns of 17.65%, FIE offers a blend of income and growth potential. This ETF is an affordable option for investors. The Canadian stock has remained stable, trading in a range of $5.93 to $7.67 over the past year, and its low price-to-earnings (P/E) ratio of 9.17 makes it attractively valued.

FIE’s diversified portfolio, with over $1 billion in net assets, offers exposure to high-quality financial and utility companies. Its beta of 1.16 suggests moderate risk, but the consistent yield and NAV (net asset value) stability show that FIE provides both growth and safety. For Canadians seeking a reliable investment vehicle that delivers consistent returns, FIE is a strong option for building wealth over time.

Growth and income

As you save, consider a Canadian stock with growth and income. Northland Power (TSX:NPI) is another excellent investment choice on the TSX, particularly for those looking for a strong income stream. NPI offers a forward dividend yield of 5.43% at writing, providing investors with a consistent payout. Despite its price decline over the past year, NPI has demonstrated solid earnings momentum, with quarterly revenue growth of 12.20%. Its focus on renewable energy projects positions it well for long-term growth in a sector that is only becoming more important.

With a beta of 0.45, NPI is less volatile than the broader market, providing stability during market swings. While its trailing P/E ratio of 84.08 suggests that the Canadian stock may be overvalued based on past earnings, its forward P/E of 16.29 shows that future growth is expected to be strong. As one analyst noted, “NPI’s renewable energy assets make it a great long-term play in the shift toward clean energy, while still providing reliable dividends.”

Bottom line

In a nutshell, even small monthly savings can turn into significant wealth when invested wisely. Whether you’re starting with $100 or more, options like FIE and NPI on the TSX offer both growth and income potential. With solid yields and exposure to sectors like financials and renewable energy, these investments provide long-term stability. Consistency, cutting costs, and choosing reliable investments are key to building wealth, making these funds ideal for Canadian investors looking to grow their portfolios over time.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Path to retirement
Dividend Stocks

Dividend Fortunes: 2 Canadian Stocks Leading the Way to Retirement

Consider adding this growth stock and reliable Dividend Aristocrat to your self-directed portfolio to benefit your retirement plan.

Read more »

happy woman throws cash
Dividend Stocks

Opinion: The 3 Best Dividend Stocks in Canada Right Now

These best Canadian dividend stocks can help you earn steady passive income for decades.

Read more »

Technology
Dividend Stocks

Why Passive-Income Investing Isn’t Just About Dividends

Some stocks like Fortis Inc (TSX:FTS) pay dividends, but they don't have to.

Read more »

dividends grow over time
Dividend Stocks

Want a Chance at Getting Rich? Invest in Dividend Aristocrats

Are you looking for long-term, compounding growth? That's what it'll take to get rich. Yet it doesn't mean investing in…

Read more »

Volatile market, stock volatility
Dividend Stocks

Set and Forget: 2 Dirt Cheap Stocks to Stash in a TFSA for 15 Years

These discounted Canadian stocks offer high growth potential, making them a compelling investment for your TFSA.

Read more »

Dividend Stocks

The Best Way to Start Investing With $1,000 Right Now

Looking to start investing? There are plenty of great options to pick, even if you only have $1,000 right now.…

Read more »

analyze data
Dividend Stocks

How Much to Invest to Get $500 in Dividends Every Month

Making dividend income doesn't have to be difficult. Before you know it, your investments will snowball into a massive passive…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How $10,000 Can Grow Inside a TFSA or RRSP

With the use of the TFSA and RRSP, investors should align their investments with their financial goals, risk tolerance, and…

Read more »