The truth about money is that you can use it to make more money. Money growth is recognizable when you invest cash in income-producing assets like stocks instead of keeping them idle. The investment amount is relative, especially in the stock market, because you can start small and reach the highest earning potential.
For starters, $400 should be good seed capital. You can choose from growth or dividend stocks for capital appreciation or passive income streams.
The top stocks to buy right now are WELL Health Technologies (TSX:WELL), Blackline Safety Corp. (TSX:BLN), Rogers Sugar (TSX:RSI), and Dexterra Group (TSX:DXT).
Image source: Getty Images
Impressive growth
WELL Health Technologies has attracted growth investors for its superb run and visible growth runway. The healthcare stock has delivered healthy returns in five years (+741.7%). At $4.04 per share, the year-to-date gain is 42.3%. Market analysts’ 12-month average price target is $8.21 (+103%).
The primary focus of this $962.4 million digital healthcare company is to tech-enable healthcare practitioners through its comprehensive healthcare and digital platform. WELL Health is now Canada’s largest clinic owner and operator, providing primary, allied, diagnostic, specialized, and preventative care services.
WELL’s vast network today is the result of its successful strategic acquisitions and investments. The recent purchase of HEALWELL AI will add $21 million in yearly revenues.
Ever-expanding market share
Blackline Safety flies under the radar, although at only $3.65 per share, current investors are up 101.7% year to date. The price on year-end 2022 was $1.81, and had you invested $400, your money would more than double or be worth $892.92 today. Market analysts forecast a return potential of between 37% and 64% in one year.
The $264.6 million tech firm, one of Canada’s fastest-growing companies, is a global leader in connected safety technology. It recently secured a $3.5 million deal with a North American infrastructure company operating in the natural gas, oil and power industries.
In Q3 fiscal 2023, Blackline recorded its 26th consecutive quarter of year-over-year revenue growth. Total revenue for the quarter increased 34% to $24.8 million versus Q3 fiscal 2022. Its Chairman and CEO, Cody Slater, said the revenue growth illustrates Blackline’s strong momentum and ever-expanding market share in the connected worker market.
Reliable passive income provider
Rogers Sugar has been a reliable passive income provider for years. While sugar is a low-growth business, the business is enduring. At $5.36 per share (-1.31% year to date), the dividend yield is a hefty 6.65%. A $400 investment will transform into a $6.65 quarterly income stream ($26.60 annually).
The $563.3 million company announced plans to spend $200 million to grow its production capacity and expand logistics and storage capacity in the Greater Toronto Area. Rogers Sugar targets completion in two years.
Specialty business services
Dexterra in the industrial sector is a viable option for its thriving business. The $378.7 million company provides integrated facilities management services, workforce accommodation solutions, innovative modular building capabilities, and other support services for clients in the public and private sectors. At $5.83 per share (+10.66% year to date), DXT pays a juicy 6.04% dividend.
Money begets money
Investing $400 in growth stocks like WELL Health or Blackline Safety and in dividend stocks like Rogers Sugar or Dexterra confirms that money begets money if invested wisely.
