Investing in tech stocks doesn’t have to break the bank, especially with innovative options like fractional shares. If you’re starting with just $200, there are excellent opportunities to dive into some of Canada’s most promising tech stocks. These include Topicus.com (TSXV:TOI), OpenText (TSX:OTEX), and WELL Health Technologies (TSX:WELL). These companies represent diverse industries within tech, making each not only accessible but also strategically sound investments for long-term growth.
Topicus stock
Let’s start with Topicus, a spin-off from Constellation Software that’s carving out its niche in the European vertical market software space. This stock is often compared to its parent company, Constellation, due to its high-growth potential.
As of its most recent earnings report, Topicus reported a 12% year-over-year increase in quarterly revenue to €312.2 million and an impressive 34% growth in net income to €38.0 million. Its 2024 revenue is on track to exceed $1.24 billion. Despite being relatively young as a standalone entity, Topicus benefits from a proven business model: acquiring and scaling mission-critical software companies.
The tech stock’s strong fundamentals include a robust operating margin of 17.83% and a growing cash flow base, making it a compelling option for those looking to invest in a tech stock with a history of compounding growth.
OpenText
Next, we have OpenText, a veteran in the tech sector specializing in enterprise information management. With businesses relying increasingly on data management and security, OpenText has positioned itself as a leader in helping organizations streamline and safeguard their operations.
The tech stock recently posted annual revenue of $5.61 billion, demonstrating resilience, even amidst global economic uncertainty. Its profit margin of 8.35% and forward price-to-earnings (P/E) ratio of 7.99 indicate that it’s trading at a reasonable valuation relative to its earnings potential.
OpenText also pays a dividend, offering a yield of 3.55%, which is rare for tech stocks. For those seeking a blend of growth and income, this stock checks both boxes. With plans to integrate artificial intelligence into its offerings, OpenText is doubling down on innovation to ensure it remains competitive in the ever-evolving tech landscape.
WELL stock
WELL stock is another gem in the Canadian tech space, focusing on digital healthcare solutions that cater to the rising demand for accessible, tech-driven medical services. The tech stock has grown exponentially, with its most recent quarter showing a 23.1% year-over-year increase in revenue to $957.69 million.
Its focus on acquisitions, such as telehealth platforms and electronic medical record services, has expanded its reach significantly. WELL’s current market capitalization of $1.29 billion reflects strong investor confidence. While its profitability metrics like a trailing P/E ratio of 16.66 and a profit margin of 7.67% indicate it’s not just growing. It’s doing so sustainably. As healthcare continues to digitize, WELL is perfectly positioned to capture a significant share of this transformative market.
Putting that $200 to work
Now, you might wonder, how can $200 make a difference when these stocks are trading at higher prices? The answer lies in fractional investing. Many brokerage platforms now allow you to buy portions of a share, enabling you to diversify across all three companies even with a modest initial investment. By splitting your $200 into fractions of TOI.V, OTEX, and WELL, you can gain exposure to three distinct yet complementary segments of the tech sector.
Looking at the broader picture, these companies are more than just numbers on a stock ticker—they represent future trends. Topicus.com is revolutionizing niche software markets in Europe, benefiting from a model that thrives on small-scale acquisitions. OpenText continues to lead in enterprise solutions, ensuring global organizations manage their data efficiently and securely. Meanwhile, WELL Health is tapping into one of the fastest-growing sectors: digital health. The demand for telemedicine and healthcare tech is surging, and WELL’s rapid growth reflects its ability to capitalize on these trends.
Altogether, your $200 can go a long way when invested in high-quality tech stocks like TOI.V, OTEX, and WELL. So, investing in tech isn’t just about riding trends. It’s about identifying businesses that will continue to thrive in the future, and these three are poised to do just that.
