Business & Investment

Two shares under $ 5 to buy in Canada today

Image Source: Getty Images

The World Health Organization (WHO) said Omicron was a variant of concern, but criticized the imposition of a total travel ban. Some health experts say that the new COVID variants are highly contagious, but even milder and less deadly. Therefore, they urge countries to lift restrictions and spread them to kill Delta variants.

Despite the guarantee, investors are still worried. TSX is below 21,000 and has become quite unstable lately.Nevertheless, if you have Willingness to invest However, you need to be careful. You can buy stocks for less than $ 5. Kanacol Energy (TSX: CNE) When Diverse royalty (TSX: DIV) Trading at Outrageous low price But you pay an appetizing dividend.

Turn the corner

Canacol is one of the little energy players who turn the corner this year. After three-quarters of 2021, its total revenue (natural gas, LNG, crude oil) reached US $ 198.59 million, up 9% from the same period in 2020. Management also reported net income of US $ 8.15 million. Net loss of $ 5.66.

Net income, total revenue, and cash flow from operating activities in the third quarter of 2021 increased by 237%, 27%, and 14% compared to the third quarter of 2020. In addition, gross domestic product and realized contract sales increased 19% and 16% year-over-year.

The $ 554.96 million natural gas exploration and production company operates primarily in Colombia.Management is committed to robust development and maintenance ESG strategy.. Its six-year plan focuses on the future of cleaner energy. In addition to our commitment to supply natural gas under the highest environmental and operational efficiency standards, we aim to further reduce CO2 emissions.

Canacol’s other future priorities are year-over-year growth in renewable and low-carbon or carbon-free energy sources and the implementation of a 100% zero-waste model for its operation. This energy stock is cost effective given its stock price ($ 3.14) and favorable dividend yield (6.65%).

If market analysts are familiar with Canacol’s price forecasts, the chances of a 12-month rise are between 29% and 48%. Energy stocks have not missed dividend payments for the past eight consecutive quarters.

Loyalty Partner Recovery

Given the stock price ($ 2.74) and dividend yield (7.94%), diversified royalties are attractive to bargain hunters and modest investors. Your $ 5,000 can buy 1,825 shares and generate $ 397 of passive income. This royalty stock could also be up. Based on analysts’ forecasts, prices can still rise by 40% (average) to 73% (maximum).

The $ 338.63 million multi-loyalty company is AIR Miles, Mr. Lube, Mr. It owns the trademarks of Mikes, Sutton, Nurse Next Door, and Oxford Learning Center. Diversified’s six loyalty partners are well-established, well-managed franchisors in North America.

Revenue results for the third quarter of 2021 and to date (9 months ending September 30, 2021) show that the loyalty flow is back to normal. The year-on-year growth rate was the same, 20%. According to management, most loyalty partners are experiencing positive trends, resulting in higher adjusted revenue.

Lube, the largest loyalty partner, has increased revenue from 13 additional locations. Sean Morrison, President and CEO of Diversified, said:

Price-sensitive income investors

Canacol Energy and Diversified Royaly are great payout plays for investors within budget. Energy companies are around the corner, but loyalty companies expect loyalty flows to stabilize soon.

Two shares under $ 5 to buy in Canada today

https://www.fool.ca/2021/12/06/2-stocks-under-5-to-buy-in-canada-today/ Two shares under $ 5 to buy in Canada today

Back to top button