MFC:CC - 2 Stocks Under $50 New Investors Can Confidently Buy
2024-03-27 21:30:00 ET
New investors often struggle with finding stocks to buy today that will continue to perform well decades from now. Fortunately, there are some great stocks that new investors can buy confidently now and hold for the long term.
Even better, some of those stocks trade at under $50 per share and can offer a tasty income and superb long-term growth.
Here are two stocks under $50 new investors can buy confidently.
This stock is a no-brainer buy right now
There are few, if any stocks that can offer superb growth and a juicy dividend wrapped in a defensive shell. Enbridge ( TSX:ENB ) is one such option and the first option on the list of stocks under $50 new investors can buy confidently.
For those unfamiliar with Enbridge, the company operates one of the largest and most complex pipeline networks on the planet. That includes both natural gas and crude oil segments which generate the bulk of Enbridge’s revenue.
Beyond the pipeline business, Enbridge is also the largest natural gas utility on the continent. That’s thanks to a trio of acquisitions last year which propelled Enbridge’s utility business to new highs with 7 million customers across North America.
And that’s not all.
Enbridge also operates one of the largest renewable energy segments in Canada. The company operates over 40 facilities scattered across both North America and Europe. Even better, those facilities generate a reliable revenue stream backed by long-term regulated contracts.
This means that Enbridge can continue to provide investors with a juicy yield while also investing in growing those segments. Enbridge has dropped over $9 billion into the renewable energy business alone over the past two decades.
Turning to dividends, Enbridge offers investors a quarterly dividend that it has paid out without fail for decades. The company has also provided annual upticks to that dividend for three decades making it a great buy-and-forget candidate.
As of the time of writing, Enbridge’s dividend carries an insane 7.57% yield making it one of the better-paying dividends on the market.
Enbridge is one of the stocks for under $50 that new investors can buy confidently, as it currently trades south of $49 per share.
What about an insurer that pays a juicy yield and offers growth?
Another great option for investors to look at is Manulife Financial ( TSX:MFC ).
Manulife is one of the largest insurers on the planet. Most Canadians are clients of Manulife, and it’s that saturation that has led the insurer to seek out growth from international markets.
And while Manulife has a solid presence in the U.S. market, it’s the company’s presence in Asia that has helped push it forward.
Specifically, Manulife forged exclusive agreements across markets in Asia. This allowed the insurer to rapidly expand across the continent to multiple markets with ease. More importantly, it gave an outlet for customers in the region who continue to demand the products Manulife offers.
Just this week, Manulife announced a US$4.3 billion reinsurance deal that will lead to higher profits and an opportunity for further growth.
Turning to dividends, Manulife offers investors a solid quarterly dividend that pays out a yield of 4.87%. The company has also provided investors with solid annual upticks to that dividend without fail going back nearly a decade.
Worth noting is that the most recent uptick of 9.6% came alongside a whopping $1.6 billion share buyback.
In short, Manulife is a great stock for under $50 new investors can buy confidently right now. As of the time of writing, the stock trades just over $33 with a P/E of just 12.8.
The stocks for under $50 new investors want
Both Manulife and Enbridge offer investors significant growth, growing yields, and defensive appeal. In my opinion, both would be great as part of a well-diversified portfolio.
The post 2 Stocks Under $50 New Investors Can Confidently Buy appeared first on The Motley Fool Canada .
Fool contributor Demetris Afxentiou has positions in Enbridge and Manulife Financial. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy .
2024