Got $500? The Best Stocks to Buy Right Now

Even if you only have $500 to invest, these are the best stocks to buy right now to see your wealth grow for decades.

| More on:

The TSX hit a milestone this week when it surpassed the 20,000-point mark. Over the last month alone, the Composite has risen 4.3% and 14.34% year to date. This tells us that despite the pullback in multiple sectors, the economy is recovering — so much so that it can feel hard to know the best stocks to buy right now.

What’s even worse is many investors feel they need to have a lot of cash on hand to even start investing. Not true. What you should do is first figure out how much you can afford after you put cash aside for your necessities like food, mortgage, car payments, etc. Then you can see how much of that you can put towards strong stocks — stocks that may be cheap but are still reliable.

So, if you have even $500 to invest, these are the best stocks to buy right now.

Insure your investments

Insurance companies sound boring, and that’s because they are. Boring really should read as reliable. These are safe investments where you can keep your cash for decades and see steady growth. And luckily, many are still trading below fair value. One such investment is Great-West Lifeco (TSX:GWO), which has seen steady share increases, even during the economic downturn.

The company made several acquisitions last year, bringing total assets up to $2.1 trillion — an increase of 5% since December 2020, making it one of the best stocks to buy right now from this growth. It also offers investors a 4.68% dividend yield that’s increased at a compound annual growth rate (CAGR) of 3.6% in the last decade. Shares are up 77% this year alone and 125% in the last decade for a CAGR of 8.44%.

Energize your stocks

There’s a reason that investors are flocking towards Enbridge (TSX:ENB)(NYSE:ENB) right now. It’s one of the best stocks to buy right now thanks to the rebound in the oil and gas sector. After about five years of downward trends, with usage in pipelines sinking, finally there is growth ahead.

As the economy rebounds, the usage of pipelines and Enbridge stock’s growth projects will increase. That increase in demand will lead to further cash flow, though the company is stabilized by long-term contracts for decades in the future. The company reaffirmed its 2021 guidance, expecting EBITDA between $13.9 and $14.3 billion and $10 billion of growth projects in service this year.

Shares of the stock are up 12.55% in the last year and 125% in the last decade for a CAGR of 8.48%. Meanwhile, Enbridge stock has a stellar dividend yield of 7.28% that’s grown at a CAGR of 14.32% in the last decade! This one definitely tops my list of buys.

Bottom line

Both of these stocks are stable investments that can see you through decades of growth. Even if you just have $500, you can invest that amount in both stocks and reinvest dividends to see substantial gains. Say you were to put $500 into both Enbridge stock and Great-West Lifeco stock for the next 30 years and only reinvest dividends. That could take your total to $738,489 based on current performance!

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe owns shares of ENBRIDGE INC. The Motley Fool owns shares of and recommends Enbridge.

More on Coronavirus

A airplane sits on a runway.
Coronavirus

3 Fresh Stocks I’m Likely Buying in 2025

I am likely buying Air Canada (TSX:AC) stock in 2025.

Read more »

RRSP Canadian Registered Retirement Savings Plan concept
Coronavirus

Canadian RRSP Stocks to Buy Now for Retirement

Alimentation Couche-Tard Inc (TSX:ATD) is a quality retirement stock.

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Coronavirus

Retirees: What Rising Inflation Means for Your CPP Payments

If you aren't getting enough CPP, you can consider investing in stocks and ETFs. Canadian National Railway (TSX:CNR) is one…

Read more »

Coronavirus

Air Canada Stock Is Starting to Get Ridiculously Oversold

Air Canada (TSX:AC) has been beaten down to absurd lows.

Read more »

Coronavirus

Should You Buy Air Canada Stock While it’s Below $18?

Air Canada (TSX:AC) stock is below $18. Should you invest?

Read more »

Illustration of data, cloud computing and microchips
Stocks for Beginners

3 Canadian Stocks That Could Still Double in 2024

These three Canadians stocks have been huge winners already in 2024, but still have room to double again in the…

Read more »

Aircraft Mechanic checking jet engine of the airplane
Coronavirus

Can Air Canada Stock Recover in 2024?

Air Canada (TSX:AC) stock remains close to its COVID-19 era lows, even though its business has recovered.

Read more »

A airplane sits on a runway.
Coronavirus

3 Things to Know About Air Canada Stock Before You Buy

Air Canada stock continues to hover below $20 despite the sharp rise in travel demand seen across the industry. What's…

Read more »