Looking to invest in Canadian stocks but don’t have a lot of capital to start with? No problem! Plenty of great Canadian stocks are available for under $10 per share.
But with so many options out there, how do you know which stocks are worth your investment? In this article, we’ll look at the best Canadian stocks under $10 and what makes them a smart choice for investors.
Whether you’re a seasoned investor or starting, this guide will help you make informed decisions and grow your portfolio. So, let’s dive in and explore the top Canadian stocks under $10!
Top Canadian Stocks Under $10
Let’s explore some of the top Canadian stocks under $10 that have demonstrated promising potential, solid fundamentals, and attractive growth prospects, making them worthy of consideration for investors seeking opportunities in this price range.
Some key performance indicators are low P/E, established companies in long-term sectors, and room for growth.
PayPal Holdings, Inc. (PYPL.NE)
Here is the Canadian listing for Paypal on the Neo exchange. PayPal is a leading global online payments platform with a strong market presence, offering a wide range of digital payment solutions for consumers and merchants.
The company’s brand recognition and user base have made it a dominant player in the digital payments industry. It has consistently delivered strong financial results, with solid revenue growth and increasing profitability, and maintains a healthy balance sheet with manageable debt levels and ample cash reserves.
PayPal’s acquisitions, such as Venmo, Braintree, Xoom, and iZettle, have allowed the company to diversify its revenue streams and penetrate new markets.
The rapid growth of e-commerce and the increasing preference for digital payments have positioned PayPal to benefit from these trends, and the shift towards digital transactions further accelerates.
The company has been expanding its services to include features like buy now, pay later (BNPL), cryptocurrency trading, and other financial services, which have the potential to drive future growth and increase revenue.
Additionally, PayPal has a significant growth opportunity in international markets, where many countries are still transitioning to digital payments. However, it is essential to consider the risks and challenges associated with investing in PayPal, such as increasing competition, regulatory hurdles, and dependence on the continued growth of e-commerce.
B2Gold Corp. (BTO.TO)
B2Gold Corp. (BTO.TO) is a Canadian gold mining company with diversified operations in Nicaragua, the Philippines, Mali, and Namibia. This diversification helps mitigate risks associated with individual regions. They have a low P/E compared to Kinross Gold (K.TO) and pay a healthy dividend of 3.5-4%.
When evaluating B2Gold Corp., consider factors like its gold production, reserves, financial performance, and growth prospects. The company has successfully increased production and has significant gold reserves, which can support future output. In addition, analyzing the financial performance, including revenue, earnings, cash flow, and profitability, can provide insights into its overall health.
Gold prices heavily influence the performance of gold mining companies like B2Gold Corp. Higher gold prices typically lead to increased revenues and profitability, while declining prices may pose challenges.
Crescent Point Energy Corp. (CPG.TO)
Crescent Point Energy Corp. (CPG.TO) has several positive attributes that may make it an attractive investment opportunity. First, the company has demonstrated consistent revenue and earnings growth, highlighting its financial health and potential for expansion.
Strong cash flow from operations ensures that Crescent Point can cover its expenses, invest in growth, and potentially maintain or increase dividend payments, appealing to income-seeking investors.
Additionally, the company has maintained manageable debt levels, reducing financial risk and allowing it to navigate better economic downturns or fluctuations in the oil and gas market. Crescent Point’s operational efficiency and cost management capabilities enable it to control costs and enhance efficiency, positioning it well amidst fluctuating commodity prices.
Brookfield Office Properties Inc. (BPO-PY.TO) – Best Dividend
The most noticeable positive of Brookfield Office Properties Inc. (BPO-PY.TO) is its incredibly generous dividend yield of around 10%. The company’s robust portfolio of premier office properties in prime locations can result in steady rental income and potential capital appreciation due to high tenant demand.
Additionally, Brookfield Office Properties benefits from a well-diversified portfolio in terms of geography and tenant mix, which helps mitigate risks associated with individual markets, industries, or tenants.
Consistent revenue growth and earnings growth indicate the company’s financial health and potential for future expansion. A healthy balance sheet with manageable debt levels and ample cash reserves further underscores its financial strength. In addition, the company’s growth strategy, including potential acquisitions, development projects, and expansion plans, may offer investors significant returns.
Bausch Health Companies Inc. (BHC.TO)
Bausch Health Companies Inc. (BHC.TO) has a diversified portfolio of pharmaceutical, over-the-counter (OTC), and medical device products, which helps mitigate risks associated with individual products or market segments. This diversification, combined with consistent revenue growth, reflects the company’s ability to generate increased income from its operations and hints at its prospects.
Bausch Health’s strong cash flow from operations ensures it can cover expenses and invest in growth, while a healthy balance sheet with manageable debt levels reduces financial risk. In addition, the company’s growth strategy, encompassing potential acquisitions, new product launches, and expansion plans, may offer investors significant returns.
Ballard Power Systems Inc. (BLDP.TO)
Ballard Power Systems Inc. (BLDP.TO) is a leader in the hydrogen fuel cell industry and is well-positioned to capitalize on the significant growth potential of this market, driven by the global shift towards cleaner and more sustainable energy sources. In addition, the company’s cutting-edge technology and expertise in fuel cell development further solidify its standing as an industry leader.
Ballard Power Systems’ consistent revenue growth reflects its ability to generate increased income from its operations, hinting at a promising future. In addition, the company’s strong partnerships with prominent companies across various sectors can drive business growth and expand its market reach. Furthermore, Ballard’s growth strategy, including potential contracts, new market expansion, and product development, makes this company an attractive stock under $10.
BlackBerry Limited (BB.TO)
BlackBerry Limited (BB.TO) has proven itself a tech leader in Canada, shifting to where it can perform best. The company has successfully transitioned from a smartphone manufacturer to a software and services provider, focusing on high-growth markets like cybersecurity, endpoint management, and IoT (Internet of Things) solutions. This business transformation has allowed BlackBerry to tap into new revenue streams and capitalize on industry trends.
Consistent revenue growth in the software and services segment reflects the company’s ability to generate increasing income from its operations, hinting at a promising future. BlackBerry’s robust intellectual property (IP) portfolio provides a competitive advantage and can generate licensing revenue. Strategic partnerships with prominent companies across various sectors can also drive business growth and expand market reach.
StorageVault Canada Inc. (SVI.TO)
StorageVault Canada Inc. (SVI.TO) offers several positives that make it an attractive investment opportunity, including a modest dividend of .19% annually. The company operates in the growing self-storage industry, benefiting from urbanization, downsizing, and increased consumer spending on items requiring storage.
This growing demand can increase occupancy rates and rental income for StorageVault Canada. In addition, the company’s diversified portfolio of self-storage properties across Canada helps mitigate risks associated with individual markets or economic conditions.
StorageVault has pursued an aggressive growth strategy through acquisitions and development projects to increase its market share and drive future revenue growth. In addition, a strong balance sheet with manageable debt levels and ample cash reserves reduces the company’s financial risk, enabling it to better navigate market volatility and economic downturns.
Athabasca Oil Corporation (ATH.TO)
Athabasca Oil Corporation (ATH.TO) has significant oil sands and light oil assets in Alberta, Canada, providing substantial resource potential. With a track record of growing production levels, Athabasca Oil Corporation is well-positioned to increase revenue and profitability, particularly in favourable market environments with higher oil prices.
The company has been improving its operational efficiency, which can help reduce costs and enhance profitability. A healthy balance sheet with manageable debt levels and ample liquidity supports the company’s growth initiatives and ability to navigate market volatility. Additionally, evaluating Athabasca Oil Corporation’s growth prospects, such as potential acquisitions, new projects, and expansion plans, can provide insight into the company’s potential for returns.
IAMGOLD Corporation (IMG.TO)
IAMGOLD Corporation (IMG.TO) has a diversified portfolio of gold mines and development projects across different countries, mitigating risks associated with individual markets or geopolitical factors. With a focus on increasing gold production and managing costs, IAMGOLD aims to improve margins and profitability in various market conditions.
IAMGOLD’s robust exploration program has the potential to discover new gold deposits and extend the life of existing mines, providing a pathway for growth. In addition, a healthy balance sheet with manageable debt levels and ample liquidity supports the company’s growth initiatives and ability to navigate market volatility.
Why Choose Stocks Under $10 in Canada?
Prospecting for stocks specifically under $10 in Canada, or any other market, can be an investment strategy often employed by investors looking for potential growth opportunities, value, or small-cap stocks. Here are some reasons why an investor might focus on stocks under $10:
Affordability – Lower-priced stocks are more affordable for small or beginner investors, allowing them to buy more shares with limited capital. This can enable them to diversify their portfolio without significant investment.
Potential for higher returns – Lower-priced stocks may have higher growth potential or may be undervalued, offering the possibility of substantial returns if the company performs well. Investors may be attracted to finding hidden gems or undiscovered companies before they become more widely recognized.
Higher volatility – Lower-priced stocks can be more volatile than their higher-priced counterparts, providing more significant price fluctuations that benefit active traders who aim to profit from short-term price movements.
Small-cap opportunities – We covered more established businesses and fewer small-cap companies in this list; they are by no means mega-cap. Stocks under $10 are often small-cap companies, which may have more room to grow than larger, more established ones. Some investors believe small-cap stocks have the potential to outperform larger companies over time.
Psychological appeal – Some investors might be more comfortable investing in lower-priced stocks due to a psychological bias that perceives them as less risky or more accessible.
However, it’s important to note that focusing solely on the stock price can be misleading. Evaluating other fundamental and technical factors, such as the company’s financial health, industry, growth prospects, management team, and competitive landscape, is crucial before making investment decisions.
Moreover, investing in lower-priced stocks can carry higher risks, as these companies may be less established or financially stable than larger-cap companies. Always thoroughly research and consider your risk tolerance and investment objectives before investing in any stock.
Are There Dividend Stocks Under $10 in Canada?
Yes, we have featured some dividend stocks under $10 on our list; here is a shortlist for your reference.
- Brookfield Office Properties Inc. (BPO-PY.TO) – Best Dividend – 10%
- Corus Entertainment Inc. (CJR-B.TO)
- B2Gold Corp. (BTO.TO)
- Crescent Point Energy Corp. (CPG.TO)
More stocks under $10 pay dividends, but these are more established and stable options.
