Canadians with investment appetites but limited budgets can still invest in 2025. Five affordable, if not relatively cheap, TSX stocks can deliver both value and growth.
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Most appealing safety net
Kinross Gold (TSX: K) trades below $20 but outperforms in the metals and mining sector. At $17.04 per share, the year-to-date gain and trailing one-year price return are 28%-plus and 98.2%-plus, respectively. This gold stock also pays a modest but safe 1% dividend (15.6% payout ratio).
The $20.6 billion senior gold mining company has operating mines and projects in Canada, the United States, Brazil, Chile, and Mauritania. Its CEO, J. Paul Rollinson, said production and cost guidance in 2024 were met, resulting in record free cash flow (FCF) of more than US$1.3 billion. Long-term debt declined 44.7% year-over-year to US$1.2 billion.
Pushing for growth
Whitecap Resources (TSX: WCP) is a bargain at $7.66 (-23.5% year-to-date), although the 9.4% yield and monthly dividend payment should compensate for the weakness. This mid-cap stock is a solid income-generating machine. The chances of capital appreciation are strong in the recovery period.
The $4.6 billion oil and liquids weighted growth company became the country’s leading light oil and condensate producer after acquiring oil and gas company Veren. Whitecap Resources is pushing for the growth of the energy sector and building Canada’s energy infrastructure to expand energy exports.
Simplified, growth-oriented strategy
H&R REIT (TSX: HR.UN) is a $2.6 billion real estate investment trust. This REIT’s portfolio consists of residential (49%), industrial (18%), office (18%) and retail (15%) properties. At $9.42 per share, the year-to-date gain is plus-3.1% versus the broad market’s negative-7.6.%.
Current investors delight in the generous 6.2% dividend and monthly passive income streams. H&R’s near-term strategy is to focus more on residential and industrial properties. A simplified growth-oriented business should help create sustainable long-term value for unitholders.
Dramatic rise
Vitalhub (TSX: VHI) was virtually unknown until the TSX30 List came out in September 2024. The healthcare stock placed 26th in the sixth edition of the flagship program for Canada’s top 30 performing stocks. At $9.35 per share, the total return in three years is 207.6%-plus.
The $535.5 million software company provides technology to Health and Human Services providers such as hospitals, regional health authorities, mental health, long-term care, and home health. In Q4 2024, revenue rose 51% year-over-year to $30.6 million, while annual recurring revenue soared 59% to $70 million from a year ago.
“We are seeing momentum build with our growing platform functionality and reputational awareness,” said Dan Matlow, Vitalhub’s CEO. The growth prospects are excellent due to the large addressable market.
Transforming waste into value
SECURE Waste Infrastructure (TSX: SES) was also a TSX30 winner last year (ranked 9th). The $3 billion company provides vital services through its fully integrated waste management network. SECURE has 80 facilities and landfills in Canada and the USA.
According to its President and CEO, Allen Gransch, SECURE has the financial flexibility to achieve its 2025 objectives and drive future growth. The company can transform waste into value for customers and create sustainable shareholder returns. If you invest today ($12.63 per share), this industrial stock pays a 3.1% dividend.
Take one or all
Take your pick from the five cheap Canadian stocks. If you only have $5,000 to invest, you can diversify and allocate $1,000 in each stock.
