You don’t need a lot of money to start building a solid investment portfolio. In fact, you can begin with as little as $50 and still move towards your financial goals. The key is to select TSX stocks with solid fundamentals and long-term growth potential. Buying and holding these stocks, even with small investments made consistently, can add up to substantial returns over time.
Against this background, let’s look at three no-brainer TSX stocks trading under $50 that can help you create significant wealth over time.
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TSX Stock #1
Shares of digital healthcare company WELL Health (TSX:WELL) are a compelling investment for investors seeking stocks under $50. The company has established a strong presence across Canada and the U.S., with the largest network of clinics providing primary care, specialized services, diagnostics, and an extensive range of omnichannel solutions.
Further, WELL Health consistently acquires clinical and digital assets that complement and strengthen its healthcare offerings. These acquisitions are highly accretive, meaning they immediately add value to WELL Health’s financials and bring in efficiencies across its existing operations. Moreover, this has allowed the company to scale rapidly, adding new services and expanding its customer reach.
WELL Health has delivered record revenue for 22 consecutive quarters. Further, its focus on cost optimization and driving efficiencies has enabled WELL Health to grow profitability. The company is improving its cash flows, lowering its debt, and enhancing its leverage to capitalize on future growth opportunities. It is also using Artificial Intelligence (AI) tools to boost its portfolio and services and accelerate growth.
In summary, WELL Health is poised to deliver solid returns in the long term.
TSX Stock #2
Aritzia (TSX:ATZ) stock is an attractive investment below $50. Shares of the clothing company have delivered above-average returns in the past, driven by its solid revenue and earnings growth. Looking ahead, the momentum in Aritzia’s business will likely sustain, enabling the company to deliver double-digit sales and earnings growth, which will drive its share price higher.
The multi-channel retailer’s focus on growing its brand awareness in the U.S. by increasing its geographical footprint and accelerating its e-commerce growth is paying off well, supporting its top-line growth. Further, its efforts to bring in new styles and improve its products bode well for growth and are likely to support full-price selling and enhance margins.
Aritzia plans to open 8–10 new boutiques in the U.S. per year through fiscal 2027. This will enable it to grow its retail square footage by about 60% and boost its top-line growth. Moreover, the company is adding omnichannel capabilities and lower warehousing costs, and is likely to benefit from operating leverage that will expand its bottom line and support its share price.
TSX Stock #3
Brookfield Renewable Partners (TSX:BEP.UN) is another compelling stock to buy under $50. It offers exposure to the growing renewable energy sector. Its highly diversified renewable assets position it well to capitalize on the global push toward sustainable and green energy sources.
Brookfield’s large operating fleet and expansive development pipeline position it well to benefit from the growing demand for clean power, especially as data centre investment continues to accelerate. Further, the company’s focus on acquisitions and investments in battery energy storage solutions augurs well for growth.
Brookfield’s contracted asset base brings steady cash flow, with long-term agreements that are indexed to inflation, adding to its stability. This reliable setup, coupled with the company’s strategic acquisitions and focus on growth areas, strengthens its capacity to generate robust cash flow.
Overall, Brookfield’s diversified portfolio, large installed capacity, solid development pipeline, long-term contracts, acquisitions, and higher pricing position it well to deliver solid fund flows and enhance its shareholders’ value through a higher dividend distribution.
