When markets feel unpredictable, sometimes the smartest move is to keep it simple and stick with Canadian stocks that have proven to deliver over the long haul. For Canadian investors with just $500 to put to work today, three names stand out as no-brainers. Those are Enbridge (TSX: ENB), Manulife Financial (TSX: MFC), and Air Canada (TSX: AC). Each of these Canadian stocks comes from a different corner of the market, but all offer clear reasons to buy right now, even with unique risks.
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Enbridge
Enbridge has been a core income stock for decades, and the latest results underline why. In the second quarter, it posted record earnings before interest, taxes, depreciation, and amortization (EBITDA) of $4.6 billion. That’s up 7% from last year, while generally accepted accounting principles earnings climbed to $2.2 billion from $1.8 billion.
Revenue jumped more than 30% year over year, a reminder that its diversified energy infrastructure is built to withstand cycles. Shares are up about 22% over the past year, and the Canadian stock reaffirmed its full-year outlook. Investors get a dividend yield near 6%, backed by distributable cash flow of $2.9 billion in the quarter.
The risk is obvious. Enbridge carries heavy debt, with over $100 billion on the books, and its payout ratio remains high at more than 130%. But management has decades of experience navigating these waters, and with a $32 billion backlog of projects, it’s hard to argue against the pipeline giant continuing to fuel investor returns.
Manulife
Manulife is another no-brainer, though for very different reasons. The insurer and wealth manager has been on a roll, posting quarterly revenue growth of nearly 14% year over year and a massive 72% jump in quarterly earnings. Net income over the trailing 12 months hit $5.4 billion, with a profit margin above 19%.
Shares are up 17% in the past year, and the valuation still looks attractive, trading at less than 11 times forward earnings. Investors also pocket a dividend yield above 4%, with room for growth given a payout ratio just over 50%.
The Canadian stock also sits on nearly $29 billion in cash, and its capital position looks strong with a debt-to-equity ratio of just 45%. The main risk is exposure to global markets and interest rate swings, but Manulife has proven resilient through volatile conditions. For long-term investors, it’s a simple, steady play on the growing need for insurance and wealth solutions.
Air Canada
Air Canada is the wildcard here, but sometimes that’s exactly what makes a Canadian stock worth a small bet. Over the past year, the airline has seen its stock swing wildly. It gained nearly 26% from its lows even as labour disruptions rattled operations this summer.
The Canada Industrial Relations Board has now declared the flight attendants’ strike unlawful and ordered them back to work, while also imposing binding arbitration. That move clears a major overhang for the Canadian stock, though guidance for the third quarter and full-year has been suspended due to the disruption.
Still, the fundamentals are better than they look at first glance. Revenue sits above $22 billion on a trailing basis, and operating cash flow has topped $3.8 billion. Shares trade at less than 10 times forward earnings. Despite heavy debt, Air Canada has over $6 billion in cash on hand. Yes, airlines are cyclical, and strikes highlight the risks. Yet with international travel demand still strong, the Canadian stock has a clear runway for a rebound once operations normalize.
Bottom line
For investors starting small, spreading $500 across these three Canadian stocks offers a mix of safety, income, and growth potential. Enbridge provides steady dividends from energy infrastructure, Manulife delivers stable profits and a solid payout from financial services, and Air Canada offers higher risk but the possibility of outsized returns as it recovers from short-term turbulence. Markets will always throw surprises. Yet owning proven Canadian names across different sectors is one of the simplest ways to set yourself up for success.
