It’s essential to start investing early in your career to maximize the benefits of compounding. You don’t need a large amount of capital to begin – what matters most is consistency and discipline, which can help build significant wealth over time. With that in mind, let’s look at three top Canadian stocks trading under $50 that could deliver strong long-term returns.
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Savaria
Savaria (TSX:SIS) provides accessibility solutions designed to support individuals with physical challenges. With manufacturing facilities in Canada, Europe, the United States, China, and Mexico, along with a strong global dealer network, the company markets its products worldwide. The growing aging population has driven increased demand for accessibility solutions, expanding Savaria’s addressable market. To capitalize on this trend, the company is prioritizing product innovation and expanding its production capacity, while enhancing efficiency and lowering costs through optimized procurement initiatives.
Additionally, Savaria has launched the second phase of its “Savaria One” initiative, outlining its strategic roadmap for the next three years. The company’s recent acquisition of Western Elevator has also strengthened its foothold in Vancouver’s luxury residential elevator market. Moreover, Savaria recently increased its monthly dividend by 3.2% to $0.0467 per share, representing a forward yield of 2.6%. Backed by these growth initiatives and improving operating margins, I believe Savaria is well-positioned to deliver strong returns over the next three years.
Extendicare
Extendicare (TSX:EXE) provides long-term care and home health care services to seniors across Canada under various brand names. On the back of its impressive quarterly performances, the Markham-based company has experienced strong buying this year, with its stock price rising by 56.6%.
Meanwhile, the growing aging population has increased the demand for the company’s services. Amid rising demand, Extendicare is expanding its operations through sustained organic growth and strategic acquisitions. In June, the company acquired nine Class C long-term care (LTC) homes and a vacant lot from Revera. Additionally, in July, it purchased CTG, a provider of home healthcare services in Ontario and Nova Scotia, for $75.1 million, with the potential for additional earnouts based on future performance. This acquisition could strengthen Extendicare’s home healthcare segment.
Along with these expansion initiatives, LTC funding and a rising average daily volume in home healthcare could support Extendicare’s financial growth in the coming years. Meanwhile, the company continues to reward shareholders with monthly dividends, currently paying $0.042 per share, which translates to a healthy forward yield of 3.1%. Considering these factors, I believe Extendicare offers an attractive buying opportunity.
BlackBerry
BlackBerry (TSX:BB), which provides intelligent security software and services, would be my final pick. The company delivered an impressive second-quarter performance in September, surpassing both its revenue and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) guidance. Strong results from its QNX and licensing segments helped offset revenue softness in other areas, driving overall topline growth. In addition to higher revenue, expanding gross margins and lower adjusted research and development, as well as general and administrative expenses, contributed to a 71.5% year-over-year increase in adjusted EBITDA to $25.9 million.
Moreover, BlackBerry’s long-term growth outlook remains strong, fueled by increasing vehicle complexity, growing demand for advanced in-vehicle computing, and a heightened focus on safety-critical systems — all of which are boosting demand for its solutions. The company is also reinforcing its position in the secure communications space with offerings such as BlackBerry UEM, BlackBerry AtHoc, and BlackBerry SecuSUITE. Furthermore, its solid customer base and strong retention rates contribute to its financial stability. Considering these factors, I remain bullish on BlackBerry’s growth prospects.
