The Canadian stock market has been trending higher so far in 2025, with several TSX stocks registering significant gains. Despite the notable rally, shares of many fundamentally strong companies are still under $50, offering an opportunity to buy these high-quality stocks with big potential.
So, if you plan to invest in equity, even with a modest budget, here are three TSX stocks under $50 to consider now.
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Hydro One stock
Hydro One (TSX:H) is a compelling under-$50 Canadian stock offering solid growth, along with regular income and stability. Its regulated electricity transmission and distribution assets make it relatively immune to the risks associated with power generation and commodity price volatility. This operating structure ensures resilient, low-risk earnings and predictable cash flows, supporting its share price and higher dividend payments.
Thanks to its solid financials, shares of this utility company have increased significantly in value. It has delivered capital gains of approximately 105% over the last five years. Moreover, it has consistently increased its dividend over the past eight years.
Looking ahead, the company’s expanding rate base, projected to grow at a compound annual growth rate (CAGR) of 6% through 2027, is expected to drive annual earnings growth of 6-8%, supporting a projected 6% annual dividend increase.
Hydro One’s robust balance sheet and strong internally generated cash flows position it well to pursue growth opportunities while maintaining its low-risk profile. Moreover, tailwinds from rising electricity demand provide significant growth potential.
MDA Space stock
MDA Space (TSX:MDA) is another compelling stock trading under $50. The stock has soared about 333% in three years, driven by the growing demand for its space technologies and a solid order backlog. Recently, however, shares of this space technology company fell sharply after EchoStar abruptly cancelled a multi-billion-dollar satellite deal and sold its spectrum licenses to SpaceX.
While the unexpected event led to a sudden drop in its share price, the company’s long-term growth story remains solid. MDA still has an order backlog worth $4.6 billion, excluding the EchoStar contract, which positions it well to deliver solid growth through 2025 and beyond. Furthermore, the ongoing strength in its businesses, including Satellite Systems, Robotics & Space Operations, and Geointelligence divisions, augurs well for growth.
With global demand for space-based solutions rising, and governments and commercial players investing heavily in satellite communications, defence, climate monitoring, and earth observation, MDA’s diversified portfolio, robust balance sheet, and cost-competitive offerings position it to benefit from these trends.
SECURE Waste Infrastructure stock
SECURE Waste Infrastructure (TSX:SES) is another attractive stock to buy under $50. Notably, SES stock has risen by over 274% in the last three years, outpacing the broader market significantly. The company is benefiting from the growing demand for its waste management services, including processing, recycling, and disposal solutions. Its energy infrastructure network and high-barrier infrastructure further support its growth.
While short-term headwinds, such as softer demand and U.S. tariffs, have impacted the company’s metal recycling segment, its fundamentals remain solid, which will support a solid recovery. SECURE is targeting tariff-free markets to navigate the challenging operating environment. It is also focusing on optimizing costs and boosting earnings.
Notably, the majority of its volumes are driven by production-related, recurring waste streams, which generate reliable cash flow even amid uncertain economic conditions. Meanwhile, its strong balance sheet, new contract renewals, robust supplier relationships, and favourable long-term industry demand trends augur well for growth.
Looking ahead, the rising oil and gas production, along with stricter environmental regulations, is expected to increase demand for the company’s specialized waste disposal services. This will drive its financials and share price.
