3 No-Brainer Stocks to Buy Under $50

Supported by resilient business models, healthy growth prospects, and reliable dividend payouts, these three under-$50 Canadian stocks look like compelling buying opportunities.

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Key Points

  • Canadian Natural Resources, Extendicare, and Savaria are strong under-$50 Canadian stocks offering substantial growth potential and consistent dividend yields.
  • These companies leverage robust operational strategies and favorable market trends to deliver long-term value and dividend growth, making them excellent choices for small investments.

You don’t need a large amount of capital to begin your investment journey. Small but consistent investments can compound into substantial wealth over the long term. Against this backdrop, here are three Canadian stocks you can buy with just $50 that offer strong growth potential.

Canadian Natural Resources

First on my list is Canadian Natural Resources (TSX:CNQ), a leading oil and natural gas producer that has increased its dividend for 25 consecutive years at a compound annual rate of approximately 21%. Supported by a diversified and balanced asset base, high-quality and low-risk reserves requiring relatively modest ongoing capital reinvestment, and highly efficient operations with disciplined cost management, the company has steadily lowered its breakeven point. The lower breakeven point has translated into strong profitability and robust free cash flow generation, enabling consistent dividend growth. At current levels, CNQ offers a forward dividend yield of about 5.2%.

Moreover, the Calgary-based producer holds approximately 5 billion barrels of oil equivalent in reserves, with a proven reserve life index of roughly 32 years. The company plans to invest $6.7 billion in 2025 and $6.4 billion in 2026 to further enhance its production capabilities. Given its high-quality reserve base, disciplined capital allocation, and strong free cash flow profile, CNQ is well-positioned to sustain dividend growth over the long term.

Extendicare

Another under-$50 Canadian stock I am bullish on is Extendicare (TSX:EXE), which provides a broad range of senior care and services across Canada under several well-recognized brands. Supported by strong operating performance in the first three quarters of 2025, the company has delivered an impressive 119% return over the past 12 months. It also ended the third quarter with $165.7 million in cash and cash equivalents and access to an additional $154 million through its revolving credit facility, leaving it well-positioned to fund future growth initiatives.

Looking ahead, Canada’s aging population should continue to drive demand for Extendicare’s services, while the company steadily expands its national footprint. In November, its subsidiary ParaMed agreed to acquire CBI Home Health, a provider of comprehensive home health care services across seven Canadian provinces, which generated $61.9 million in adjusted EBITDA over the trailing 12 months (as of July 31, 2025). The acquisition could strengthen Extendicare’s presence in Western Canada and enhance its overall growth profile. In addition, management anticipates realizing approximately $7.4 million in annualized run-rate synergies over the next two years through IT integration and other cost efficiencies.

Along with these growth prospects, its monthly dividend yield of 2.3% and an attractive price-to-sales multiple of 1 over the next 12 months make Extendicare an excellent buy.

Savaria

My final pick is Savaria (TSX:SIS), a company that designs, manufactures, and distributes accessibility solutions for individuals with physical disabilities. Supported by geographically diversified manufacturing facilities and an extensive global dealer network, Savaria markets its products worldwide. Demand for the company’s solutions continues to grow, driven by an aging population and rising income levels. At the same time, Savaria is prioritizing innovation to develop products that meet evolving customer needs while expanding production capacity to increase market share.

Operational execution has also been improving. The rollout of the “Savaria One” initiative has enhanced efficiency by optimizing factory layouts, streamlining inventory management, and consolidating procurement across its facilities, helping lift adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margins to over 20%. In addition, the company is actively reviewing its supply chain and evaluating strategies to optimize its North American manufacturing footprint amid ongoing geopolitical uncertainty. These initiatives could preserve the company’s competitiveness and ensure uninterrupted service delivery.

The valuation remains compelling, with the stock trading at an attractive next-12-month price-to-sales multiple of 1.8. Along with these factors, Savaria’s 2.3% monthly dividend yield makes it an attractive long-term investment opportunity.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources. The Motley Fool has a disclosure policy.

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