Self-made billionaires like Warren Buffett prioritized saving and investing over spending at an early age. The GOAT (Greatest of all Time) of investing developed frugal habits that helped him amass significant wealth. He made money from stocks. You can emulate his ways and make money even with limited capital.
Many TSX stocks trade at less than $10 per share, but even with limited funds, your potential earnings could be huge. PHX Energy Services (TSX:PHX), Dexterra Group (TSX:DXT), and Black Diamond Group (TSX:BDI) are among the names you can consider today. All three small-cap stocks are lucrative investment prospects for frugal investors.
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TSX30 winner
PHX Energy Services was ranked 20th in the 2024 TSX30 List, the flagship program that recognizes the 30 top-performing Canadian stocks. The energy stock delivered a 152%-plus overall return over three years (based on dividend-adjusted share price performance).
Besides the relatively cheap price ($8.50), the dividend offer is a juicy 9.4%. Suppose you purchase 820 shares. Your $6,970 investment will generate $655.88 in dividend income or $163.97 per quarter. PHX paid monthly dividends starting in 2014 and then changed the payout frequency to quarterly in 2023.
PHX Energy Services operates in the oil and natural gas industry. The $387.2 million company provides oilfield services, including horizontal and directional drilling, survey management, gyro servicing, and stream services. It caters to clients in Canada, the U.S., Albania, and Russia.
In Q1 2025, revenue reached an all-time high quarterly record of $193.7 million, representing a 17% increase over Q1 2024. Earnings rose 15% year-over-year to $20.2 million, while excess cash flow climbed 144% to $18.2 million from a year ago. However, the latest conflict in the Middle East could disrupt industry activity levels in the coming quarters.
Scalable business model
Dexterra serves diverse end markets in Canada and the United States. The $1.2 billion company offers support services for the creation, management, and operation of infrastructure. Management takes pride in the capital-light and scalable business model.
The key client sectors Dexterra serves include government, aviation, commercial, defence and security, education, healthcare, and others. Revenues have been growing yearly since 2021. In Q1 2025, net earnings reached $8.6 million compared to the $3.6 million net loss in Q1 2024.
Dexterra’s near-term priorities are to deliver revenue growth, expand the integrated facilities management pipeline, and enhance profitability. At $8.80 per share (+14.06% year-to-date), prospective investors can partake in the 4% dividend yield.
Niche market
Black Diamond provides modular space and workforce accommodation solutions in North America and Australia. The $573.6 million Calgary-based company operates and derives revenue from two main segments: Modular Space Solutions (MSS) and Workforce Solutions (WFS).
In Q1 2025, profit soared 287% year-over-year to $5.8 million, representing a 400% jump in earnings per share (EPS) to $0.10. The MSS segment reported record rental revenue of $25.5 million. Notably, free cash flow (FCF) increased 80% to $16.9 million versus Q1 2024.
Market analysts’ average 12-month price target is $12.54 (+34% potential upside). The current share price is $9.36, with a corresponding dividend yield of 1.5%.
Price-friendly
Stock earnings are relative and not dependent on the amount of investment. PHX Energy Services, Dexterra Group, and Black Diamond Group are price-friendly stocks that could reward investors with substantial financial gains.
