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.
Image source: Getty Images
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.
