Whether it’s dividends or growth, there’s no shortage of great stocks to buy on the market right now. That’s great news for investors, particularly those newer to investing who have their pick of greats, many trading under $50.
Here are two of those great stocks to scoop up while they are less than $50.
Option 1: The recovering telecom
First on the list of stocks to buy for less than $50 right now is BCE (TSX:BCE). BCE is one of Canada’s big telecom stocks.
Telecom stocks are well-known for their defensive moats. In the case of BCE, that moat is massive. The company boasts nationwide service across multiple subscriber-based segments. That includes wireless, wireline, phone, and internet services.
Those segments provide a stable revenue stream that allows BCE to pay out a very handsome dividend. As of the time of writing, that dividend works out to a tasty 5.4% yield.
Prospective investors should note that BCE isn’t just one of the stocks to buy for under $50. It’s also an intriguing growth prospect. Following some steep cost-cutting efforts, BCE’s acquisition of Ziply Fiber signals a compelling growth opportunity.
For those unfamiliar with Ziply, the company is a U.S.-based broadband company that is known for its fast speeds. BCE’s acquisition of the company not only adds 3 million paying subscribers to the mix, but also gives BCE a solid footing in the lucrative and arguably underserved U.S. fibre market.
And perhaps best of all, thanks to BCE’s cost-cutting endeavours, the stock trades at a discount. As of the time of writing, BCE trades at $32.52, down 7% over the trailing 12-month period with a P/E of 20.
As one of the great stocks to buy now, BCE handily beats that under $50 target.
Option 2: The REIT for lazy income
If I were to ask you to imagine a passive income idea, most would think about owning a rental property. Unfortunately, rising interest rates and soaring downpayment costs have priced many would-be landlords out of the market.
Enter RioCan Real Estate (TSX:REI.UN) as an alternative for those would-be landlords.
RioCan is one of the largest REITs in Canada, with a portfolio of approximately 190 properties spread across the country, primarily in metro markets.
RioCan’s portfolio mix is composed primarily of commercial retail sites, but in recent years the company has shifted that mix to include a growing number of mixed-use residential properties.
Those mixed-use units comprise residential towers that sit atop several floors of retail. The properties are in major metro markets of Canada, situated along transit lines.
This means that demand for the units is strong, thanks to commute times that remain short.
Perhaps best of all, investing in RioCan as one of the best stocks to buy right now means that investors can live out that landlord dream. Much like a landlord collecting rent, RioCan pays out a juicy monthly distribution to investors.
As of the time of writing, RioCan’s distribution works out to a tasty 6.2% yield. This means that a $20,000 investment in RioCan (as part of a larger, diversified portfolio) will earn an income of just over $100 each month.
While that may seem to pale in comparison to an owner collecting rent on a rental property, there are a few things to note. First, that $20,000 investment is about 5–10 times less than the recommended downpayment amount. Then there are taxes and maintenance, which need to be accounted for.
Finally, there’s finding and keeping a paying tenant to contend with.
In short, RioCan offers a way for investors to collect that lazy monthly income. And at just under $19 per share, investors can pick up two shares for $50 and still have change to spare.
The stocks to buy today
No stock, no matter how defensive, is immune to risk. Fortunately, both RioCan and BCE offer some defensive appeal in addition to their juicy yields.
Both would do great as part of any larger, well-diversified portfolio.
Buy them, hold them, and watch your future income grow.
