Spending patterns usually change during inflationary periods or when goods, services, and other bills cost more. People who develop saving habits and save often have an advantage because they can invest to make more money. If you’ve socked away money, consider investing instead of spending it to counter inflation.
Even $1,000 in seed money is enough to make a single stock purchase or two, at most. While stock investing has risks, the tiny capital could return many times over with the right investment choices and power of compounding.
If you plan to invest now, Rogers Sugar (TSX:RSI) and WELL Health Technologies (TSX:WELL) are excellent money-makers. The former provides reliable income streams from dividends, while the latter could deliver massive capital gains because of its high-growth potential.
Image source: Getty Images
Strong demand
Consumer staples stocks are safe havens for risk-averse investors as companies in the sector are generally less sensitive to economic cycles. Rogers Sugar, in particular, is an ideal inflation hedge because sugar could rise in value along with inflation.
In the first half of 2023, revenue rose 10.4% to $534.4 million and net earnings declined by only 0.2% year over year to $25.7 million. The sugar volume increased 3.1% year over year to 388,396 metric tons, while maple syrup declined 5.2% to 23,878 (thousand pounds).
Notably, net earnings in Q2 2023 climbed 29.1% to $11 million compared to Q2 2022. Mike Walton, President and CEO of Rogers and Lantic Inc., said, “Canada’s favourable sugar dynamics and continued strong demand for sugar-containing products drove increased profitability in the second quarter of fiscal 2023.”
Management expects the trend to continue throughout 2023 and report strong and stable financial results, notwithstanding lower sugar production. The maple business faces a challenging environment but could turn around due to improved pricing, automation projects, and improving economic conditions.
The consumer staple stock is a steady Eddie, which hardly experiences wild price swings. At $6.03 per share, the year-to-date gain is 7.6% and the dividend yield is 5.92%. Your $1,000 or $500 can buy 165 or 82 shares and generate $60.30 or $30.15 in passive income, respectively. The dividend is tax-free if you hold RSI in a Tax-Free Savings Account (TFSA).
Digital health market leader
The healthcare sector has rebounded incredibly from the beating in 2022. As of this writing, it’s the second-best performer among 11 primary sectors, enjoying an 11.7% year-to-date gain. Meanwhile, WELL Health is outperforming the broader market by a wide margin thus far in 2023, up 62% versus 4.98%, respectively.
The current share price is only $4.65, although market analysts have a 12-month average price target of $8.25 (+77.4%). Your $1,000 or $500 can purchase 215 or 107 shares, respectively. If the price forecasts are accurate, your respective investment will be $1,773.75 or $882.75 in one year.
This $1 billion digital health company has built the most comprehensive end-to-end healthcare system across Canada and is still growing. Today, WELL is the digital health market leader whose omnichannel healthcare services and solutions have reached the United States.
Multiply your money
A $1,000 investment in Rogers Sugar and WELL Health, or both, will go a long way. Since the share prices are less than $6.50, you can buy many shares at the onset and accumulate more later. More importantly, you’re not throwing away money but multiplying it in two ways: dividends and capital gains
