CSU:CC - Have $500? 3 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now
2024-03-28 20:00:00 ET
When it comes to creating savings and passive income through investing, a great number to try and aim to put aside each month is $500. But, what should you actually do with that $500? Today, we’re going to look at exactly that, by considering three solid long-term investments. These cheap stocks are cheap in every sense, so let’s get right into why.
Technology
Tech stocks continue to be a solid choice if you know what to focus on. Companies that drive innovation and economic growth around the world can be solid buys. That’s especially if they manage to find a way of creating recurring revenue through software development, cloud computing, or cybersecurity as examples.
These are great long-term opportunities, but what if I said you could get into all these tech sectors? That’s what you get by investing in a company like Topicus ( TSXV:TOI ). Topicus stock is the spin off company of Constellation Software ( TSX:CSU ), which is decidedly not cheap. But that’s for a good reason.
The company has become a powerhouse of finding the perfect essential software companies, and buying them up on the cheap. It’s done so well that now Topicus is doing the same thing, but in Europe. So while shares might be on the rise, I’d expect a lot more to come from this tech stock.
Healthcare
Another area that offers huge opportunities for investors is the healthcare sector. An aging population and increasing healthcare needs mean the healthcare sector isn’t just essential, it’s growing. This includes through investments into everything from pharmaceutical companies and healthcare providers, to real estate.
Which is why now is a great time to consider a stock on the recovery like NorthWest Healthcare Properties REIT ( TSX:NWH.UN ). NorthWest was acquiring properties across the world, but found itself lean on cash. This caused the stock to plummet as it sold off non-core assets and refinanced loans.
Yet now, the company has made a huge impact on its debts and is focusing on streamlining its assets. This has caused shares to climb once more, and yet it still retains a huge value. Especially for long-term investors seeking passive income, with a dividend yield of 7.73%.
Renewable energy
Finally, energy stocks have long been considered some of the best places to invest for the future. Yet oil and gas stocks don’t seem to have the pull they once did as we move towards a carbon neutral future. That means diversified renewable energy stocks are likely the best choice.
Which is why I would certainly consider a company such as Brookfield Renewable Partners LP ( TSX:BEP.UN ). BEP holds a diverse range of assets, all around the world. Whether it’s solar power or nuclear power, it operates on a global scale, minimizing risk and creating more revenue.
However, shares have been down as interest rates and inflation have created more costs. Yet if you’re again in for the long run, $500 can go a long way with this renewable energy stock. All while collecting a 6.2% dividend yield to reinvest along the way!
The post Have $500? 3 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now appeared first on The Motley Fool Canada .
Fool contributor Amy Legate-Wolfe has positions in Brookfield Renewable Partners, NorthWest Healthcare Properties Real Estate Investment Trust, and Topicus.com. The Motley Fool has positions in and recommends Topicus.com. The Motley Fool recommends Brookfield Renewable Partners, Constellation Software, and NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy .
2024