The Smartest Financial Stocks to Buy With $500 Right Now

Strong fundamentals, growth plans, and rising momentum make these two Canadian financial stocks worth considering today.

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Even with $500, you can put your money into quality Canadian stocks that are growing, adapting, and returning value to shareholders. And I think the financial sector is where some of the smartest opportunities are hiding right now.

In this article, I’ll talk about two such top financial stocks to buy right now with $500 – showing real signs of momentum and long-term growth potential.

iA Financial stock

Let’s begin with an insurance and wealth management giant, iA Financial (TSX:IAG). Trading at $143.12 per share, IAG stock has jumped by 59% over the last year. It currently has a market cap of $13.3 billion and offers a quarterly dividend with a 2.5% annualized yield.

This solid performance could mainly be attributed to the company’s focus on execution. In the first quarter of 2025, it reported strong momentum across all business lines, with sales growing in almost every segment. During the quarter, iA Financial’s total premiums and deposits jumped by 19% YoY (year-over-year) to reach $5.8 billion.

From a profitability perspective, the company posted a 19% YoY rise in its latest quarterly core earnings to $2.91 per share with the help of higher earnings across insurance and wealth management segments.

Now, iA is aiming for an over 17% return on equity by 2027 and targeting more than $650 million in organic capital generation this year. The company is also increasing its presence in the used vehicle warranty market through its recent acquisition of Global Warranty and continues to invest in technology and its dealer services business.

In short, it’s preparing for a brighter future with smart acquisitions, strong sales networks, and disciplined capital deployment — making it one of the top financial stocks to buy on the TSX today.

Sprott stock

Now let’s shift to something completely different, Sprott (TSX:SII), a financial stock deeply tied to metals and critical materials. This Toronto-based asset manager doesn’t deal in broad market funds or generic equities. Instead, it specializes in precious metals and critical materials. That niche has helped it build a loyal investor base and deliver strong performance, especially when commodities rally.

After rallying by 50% over the last year, Sprott stock is trading at $97.30 per share with a market cap of $2.5 billion. At this market price, it also offers an annualized dividend yield of about 1.7%.

While the broader financial sector has faced some volatility so far in 2025, rising gold prices and heavy inflows into its physical gold and silver trusts have improved Sprott’s financial performance. In the first quarter alone, Sprott added over $3.1 billion in market value to its assets under management and pulled in $407 million in net inflows. At the end of the March quarter, its total assets under management stood at $35.1 billion, reflecting a strong 11% increase from year-end.

Overall, Sprott’s mix of gold, silver, uranium, and rare material strategies gives it something most asset managers don’t have – inflation protection and growth potential rolled into one. That’s why this could be one of the top financial stocks to buy now for anyone with a long-term view.

Fool contributor Jitendra Parashar 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.

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