The Best Stocks to Invest $10,000 in Right Now

Got $10,000 that you are looking to deploy in October? Here’s a mini-stock portfolio with an excellent mix of income, value, and growth.

| More on:

Image source: Getty Images

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. Here’s 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.

It’s 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.

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 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.

More on Investing

calculate and analyze stock
Investing

2 Top Value Stocks I’d Happily Scoop Up in November

Here are two top value stocks I'm seriously considering adding this month. They are likely to continue to accumulate over…

Read more »

A data center engineer works on a laptop at a server farm.
Tech Stocks

3 No-Brainer Data Centre Stocks to Buy With $500 Right Now

Data centres are going to be a huge growth opportunity in the next decade. And these are the top buys.

Read more »

Paper Canadian currency of various denominations
Bank Stocks

1 Magnificent Canadian Dividend Stock Down 28% to Buy and Hold for Decades

This top Canadian dividend stock is underperforming its large peers this year, but a turnaround could be on the horizon.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Where to Invest Your $7,000 TFSA Contribution

The TFSA is attractive for investors who want to generate tax-free passive income.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA Investors: 3 Dividend Stocks Worth Holding Forever

These TSX stocks have the potential to grow their dividends over the next decade, making them top investments for TFSA…

Read more »

hand stacks coins
Investing

Secure a Wealthy Future With These 3 Canadian Stocks

These Canadian stocks have the potential to appreciate substantially over time and may also enhance returns through dividend payments.

Read more »

Tractor spraying a field of wheat
Dividend Stocks

Is Nutrien Stock a Buy for its Dividend Yield?

Nutrien is down more than 50% form the 2022 highs. Is NTR stock now oversold?

Read more »

analyze data
Investing

3 Blue-Chip Stocks Every Canadian Should Own

These blue-chip stocks are backed by large-cap companies with well-established businesses, solid fundamentals, and a growing earnings base.

Read more »