Top 5 Canadian Stocks To Buy Under C$20 In May

One thing that many investors consider important is a diverse portfolio. While finding the ‘best’ stocks on a platform may not be an easy task, the COVID-19 pandemic has made it even more difficult with its impact on the stock markets.

However, some stocks listed on the Toronto Stock Exchange (TSX) and Toronto Stock Exchange Venture (TSXV) have posted healthy returns this year. 

If you're planning to invest in the equity market, here are five Canadian stocks to explore from different sectors that are priced under C$ 20.

1.     Savaria Corporation (TSX:SIS)

Savaria Corporation manufactures products for personal mobility. Its debt-to-equity (D/E) ratio stands at 0.9, as per TMX.

Its monthly dividend, presently at C$ 0.04, grew by 15.05 per cent in the past three years.

Savaria shares surged by 4.6 per cent in the past week. Earlier this month, on May 13, SIS stocks clocked a 52-week high of C$ 19.63. On Tuesday, the scrips closed at C$ 19.23.

Savaria’s revenue amounted to C$ 112.1 million in Q1 2021, representing an increase of 26.8 per cent year-over-year (YoY). Its gross profit was up by C$ 8.8 million to C$ 38.9 million in the same period.

2.     Sienna Senior Living Inc (TSX:SIA)

One of the largest companies to provide care facilities to elderly people, stocks of Sienna Senior Living jumped 9.6 per cent in the past month.

The shares closed at C$ 16.02 on Tuesday, 81 per cent higher than its 52-week low of C$ 8.85 (July 10, 2020). Sienna scrips recorded a year-to-date growth of 13.3 per cent, outperforming the S&P TSX Health Care Providers & Services (Industry) Index.

Sienna posted a net income of C$ 2.9 million in Q1 2021, as compared to a net loss of C$ 2.4 million in Q1 2020.

Sienna pays a monthly dividend of C$ 0.078 and its dividend yield is 5.843 per cent, as per TMX.

3.     Vecima Networks Inc (TSX:VCM)

Vecima Networks develops integrated hardware and provides software solutions. Its market cap is C$ 348.98 million, as per TMX data.

The expectation of the technology sectors performing well this year could work in Vecima’s favor. The stocks have soared by 46 per cent in the past year and expanded by eight per cent in the last 30 days.

VCM shares were priced at C$ 15.23 apiece at closing bell on Tuesday. Vecima also distributes a quarterly dividend of C$ 0.055, which is scheduled to be payable on June 14, 2021.

Vecima’s revenue stood at C$ 31.9 million in Q3 2021. Its gross profit of C$ 14.3 million for the latest quarter saw an increase of 12 per cent YoY.

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4.     New Found Gold Corp (TSXV:NFG)

With gold prices being on the rise, investors might be interested in exploring gold stocks. And getting hold of NFG stock before its price rises further could lead to long-term returns.

New Found Gold stocks soared by 34.5 per cent in the past week and catapulted by 648 per cent in the last nine months.

The gold corporation, with a current market cap of C$ 1.8 billion, is involved in the business of exploring and evaluating gold properties in Canada. Its annual cash and cash equivalents valued at C$ 47.7 million in 2020, up from C$ 7.3 million in 2019.

New Found Gold scrips were priced at C$ 12.19 at market close on May 25.

5.     Paramount Resources Ltd (TSX:POU)

Oil prices have recovered since the pandemic lows and so have the stocks of most companies in the oil & gas sector. Paramount Resources, for one, recorded a robust stock price growth of 669 per cent in the past year.

Its shares closed at C$ 13.46 on Tuesday, marginally shy of its 52-week high of C$ 13.88. Paramount's price-to-earnings (P/E) ratio stands at 13.9 and it offers a 3.9 per cent return on assets.

Paramount, which produces natural gas and crude oil, generated a free cash flow of C$ 23.2 million in the first quarter of 2021. Its cash from operating activities was C$ 81.3 million in the latest quarter. 

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