There is a common misconception that you need thousands of dollars to invest in the stock market. A stock’s quality is determined by the value it brings. This value comes from the company’s revenue and earnings potential. When we say these are cheap stocks, it means that they have good earnings potential, but that is not reflected in the stock price.
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Two dirt-cheap stocks to buy with $200
Knowing what to expect from the stocks is important before investing in them. You cannot expect stocks to convert $200 into $2,000 and be disappointed with a 10-15% return. While there are such stocks that make that conversion possible, they are rare. These stocks can give reasonable returns.
HIVE Digital stock
HIVE Digital Technologies (TSXV:HIVE) is trading at a valuation of 2.7 times price-to-sales ratio and 7.27 times price-to-earnings ratio. This valuation is attractive as the stock has not priced in the revenue growth from the expansion of Exahash per second (EH/s) capacity.
Hive has two businesses: the major business is Bitcoin mining, which generates 90% revenue. The challenge with this business is the halving of Bitcoin, which halves the number of Bitcoins that can be mined with a certain EH/s. Hence, the company increases its capacity to mine more Bitcoin. This time, Hive has accelerated its expansion. It is on track to expand its capacity from six EH/s in February to 25 EH/s by November, which could help it mine more Bitcoin even at a halved rate.
However, the key growth trigger is the high-performance computing business BUZZ. Its revenue surged 85% year over year in the June 2025 quarter and 100% in the March 2025 quarter. The company expects to scale this business to $100 million in annual revenue.
The increasing participation of BUZZ could drive HIVE’s stock price in the future and generate stable earnings by reducing the exposure to Bitcoin price volatility. This stock could double or even triple your money in the next three to five years as artificial intelligence (AI) applications increase.
RioCan REIT
RioCan REIT (TSX:REI.UN) is in the business of developing and leasing real estate properties, retail stores in particular. It has also expanded into RioCan Living, where it develops and sells residential properties. It pays off its construction loans from the sales proceeds. This intensification helps RioCan get better rent for its stores. It passes on the rent to its shareholders as a distribution.
Hence, the distribution amount is valued as a percentage of operating cash flow, which is currently 60.5%. As for the unit price, it is valued as the fair market value of the properties RioCan holds divided by the total number of units. The real estate investment trust reported a net gain of $15.9 million in the fair value of its investment properties.
It is a good time to buy the stock and lock in a 6.4% distribution yield. The unit has a monthly payout of $0.0965. You can also expect a capital gain as property prices increase. RioCan has an advantage in property value gain as most of its properties are located in the Greater Toronto Area.
How to allocate $200 between the two stocks
If you are a risk-averse investor seeking regular income, consider a higher allocation to RioCan REIT. If you have high risk tolerance and do not want the money for more than a year, allocate a higher amount in Hive. A 50-50 allocation is also a good option.
A $100 investment in RioCan REIT can buy you five units at $18 per unit. Considering a price range of $21-$15.5, your $100 could increase to $105 or fall to $77.5. In either case, you will get $5.77 in annual dividends. This amount may look small, but if you invest $200 every month, it could become a significant amount. Similarly, I have assumed Hive’s share price range of $2.4-$6.
