THE BEST STOCKS TO INVEST $10,000 IN RIGHT NOW
With the TSX Index up nearly 15% in 2024, it has been a very good year for Canadian investors. Fortunately, there are still plenty of buying opportunities to take advantage of right now. Hereâs a four-stock mini portfolio to buy if you have $10,000 of cash to deploy right now.
A cheap real estate stock
Interest rates are quickly declining and that is having the inverse effect on real estate stocks. While many real estate stocks have enjoyed a nice recovery this year, Minto Apartment Real Estate Investment Trust (TSX:MI.UN) could still have plenty of upside ahead.
It operates a portfolio of some of the highest quality, best-located apartment assets in Canada. The REIT has great prospects for high single-digit rental rate growth for many years ahead.
The REIT trades at a 20%-plus discount to the private market value of its assets. It also has a nice 3% dividend yield. For income, value, and modest growth, this is an attractive stock to swipe up today.
A top energy stock with a high yield
Canadian Natural Resources (TSX:CNQ) is another stock to add for income. Oil prices have pulled back more than many expected this year. As a result, major energy producers have seen double-digit stock declines.
Itâs a great opportunity to add one of the highest-quality energy names in the world. CNQ has decades of reserves and a low energy decline rate. The large Canadian oil and natural gas producer has a low cost of production, so it can sustain solid cash generation even when prices dip below US$60 per barrel.
With a pristine balance sheet, CNQ can sustainably pay (and even grow) its dividend. This stock yields a 4.6% dividend today. Its valuation looks appealing at today’s price.
A fast-growing fintech stock
If you are looking for some higher risk/higher reward opportunities, Propel Holdings (TSX:PRL) is one to look at. Propel provides specialized small-to-mid sized loans to the non-prime and sub-prime market segment. This is a riskier demographic. However, the segment has been neglected by larger financial institutions.
Propel uses its proprietary artificial intelligent lending platform to underwrite loans quickly and effectively. It has a proven strategy in the U.S., and it just expanded into Canada.
Last week, the AI-powered lender announced plans to acquire a high-quality lending platform in the United Kingdom. It issued equity to fund the purchase, and the stock pulled back by about 10%.
While adding equity is dilutive, the acquisition could add an accretive new European growth trajectory. Overall, it looks like the pullback could be a good time to start a new position in this fast-growing, profitable company.
A small-cap company in turnaround mode
If you are looking for another higher risk/higher reward scenario, Sangoma Technologies (TSX:STC) is an interesting bet today. Sangoma provides a broad mix of communication and cybersecurity solutions for small-to-medium sized businesses across North America.
A few years ago, the business made some huge acquisitions that were dilutive to shareholders. The stock dropped massively. The old management team left the job.
Today, Sangoma has a smart and efficient management team that has fixed its balance sheet, consolidated its sales processes, and identified opportunities for efficiencies and growth.
The company has a high stream of recurring revenues. It also has a committed customer base (customer churn is below 1%). The business generates a lot of excess cash. STC stock has a 15%-plus free cash flow yield!
Going forward, the company is postured to grow profitably. If it can execute its new strategy, the stock looks very cheap today.
The post The Best Stocks to Invest $10,000 in Right Now appeared first on The Motley Fool Canada.
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More reading
- My 5 Favourite Stocks to Buy Right Now
- Top Tech Wild Cards Canadian Investors Should Watch
- Here Are My Top TSX Stocks to Buy Right Now
- How Much to Invest to Earn an Extra $5,000/Year in Passive Income
- The 3 Most Popular Stocks on the TSX Today: Do You Own Them?
Fool contributor Robin Brown has positions in Propel and Sangoma Technologies. The Motley Fool has positions in and recommends Propel. The Motley Fool recommends Canadian Natural Resources. The Motley Fool has a disclosure policy.
2024-09-30T23:05:50Z
