2 Top TSX Stocks To Buy Today Under C$50

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2 Top TSX Stocks To Buy Today Under C$50

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 2 Top TSX Stocks To Buy Today Under C$50

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Summary

  • Despite the pandemic, the market rallied after an initial plunge. Now might be the right time to invest.
  • On April 5, 2021, the S&P/TSX Composite Index hit a record high and closed up 36.47 points.
  • If you have limited money take a look at these two picks under C$ 50.

Last year when the COVID-19 pandemic struck the world and all activities came to a screeching halt, the equity market was affected due to the fear of the unknown and mass sell-off was witnessed.

'Black Monday' or March 9, 2020, saw shares falling across the world and the Canadian market was affected too. The main index of the country (S&P/TSX Composite Index) closed down more than 10.3 per cent which was the lowest in 14 months. However, within few months the market rallied despite the ongoing pandemic as investors regained their lost confidence.

On April 5, 2021, the S&P/TSX Composite Index hit a record high and closed up 36.47 points at 19,026.79. Since there's a sudden surge in the cases of coronavirus and there's uncertainty in the market, now may be the time to explore option and rebalance the investment portfolio.

If you have limited money and are looking to invest in the market, these two picks under C$ 50 might be worth exploring this year:

TELUS Corporation (TSX:T)


Since the focus on physical distancing measures and lockdown is going to increase, people will stay at home. This means that the consumption of internet and telephone services might increase and Telus (TSX:T) will likely benefit from it.

It is one of the largest communications companies in Canada and is worth C$ 34.6 billion, as per TMX. It holds a price-to-book (P/B) ratio of 2.869 and offers a 10.67 per cent return on equity (ROE) and 2.97 per cent return on assets (ROA).

One-year performance of Telus Corporation (Source: Refinitiv)

Telus offers a dividend of C$ 0.311 every quarter and its dividend yield is 4.847 per cent. In the past three years, the dividend growth rate was 6.44 per cent and 7.07 per cent in five years.

With a volume of 3.5 million shares traded in the last 10 days, Telus is among the most actively traded stocks.

In a year the stock grew by 14 per cent and about 2 per cent year-to-date (YTD). It traded at C$ 25.68 at market close on April 13, about 7 per cent down than its 52-week high of C$ 27.54 (February 9, 2021) and 18.2 per cent up when compared to the 52-week low of C$ 21.7 (April 22, 2020).

In 2020, the company's operating revenues and other income were C$ 15.5 billion, an increase of 5.5 per cent year-over-year. For the same period, the adjusted EBITDA grew 0.2 per cent YoY to C$ 5.7 billion.

Sprott Inc. (TSX:SII)


The recent spike in coronavirus cases is expected to increase the demand for gold and some market experts believe that it will hit new all-time highs. The financial services provider Sprott (TSX:SII) which also deals in gold ETFs might benefit from it.

One year performance of Sprott Inc. (Source: Refinitiv)

The company is worth C$ 1.3 billion with a P/B ratio of 3.444, as per TMX. It offers 8.26 per cent ROE and 6.65 per cent ROA. The stock grew by 69 per cent in a year and 34.4 per cent YTD.

In 2020, the net income increased to around US$ 27 million, up by 164.3 per cent YoY. For the same period, the adjusted EBITDA increased by 63.3 per cent to US$ 48.7 million.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.

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