5 Stocks You Can Safely Invest $500 In Right Now

After a disappointing start to the month, Canadian stock markets have seen healthy buying over the past few days. Lower-than-expected inflation in the United States has raised hopes for a rate cut from the Federal Reserve, which has pushed stock markets higher. With investor sentiment improving, here are five of the best Canadian stocks you can buy without hesitation.

restless

restless (TSX:GSY) is a Canadian subprime lender that has been growing its finances at a healthier pace for the past two decades. Despite strong growth, it has acquired just 2% of the $218 billion Canadian subprime market. Given its expanded product offering, solid distribution channels, and impressive digital infrastructure, the company is hoping to increase its market share.

Falling interest rates and falling inflation could boost economic activity, driving demand for credit and expanding goeasy’s addressable market. Meanwhile, the company’s management expects its credit portfolio to reach $6 billion by 2026, up 45% from its end-June level. The expansion could boost its top line at an annualized rate of 14% through 2026, while also boosting its operating margin to 42%. Given its healthy growth prospects, I’m bullish on goeasy.

Dollar

Dollar (TSX:DOL) operates 1,569 stores in convenient locations across the country. Given its excellent direct sourcing and efficient logistics, the company offers several consumer products at attractive prices, thus enjoying healthy same-store sales even in difficult conditions. The company is also expanding its presence and expects to reach 2,000 stores by the end of 2031.

In addition, it recently increased its stake in Dollarcity, a value retailer in Latin America, from 50.1% to 60.1%. In addition, Dollarcity plans to open about 500 stores in the next six years. Given all these factors, Dollarama’s financial growth could continue, driving up its share price.

Waste connections

Another TSX stock you can buy without hesitation is Waste connections (TSX:WCN). The waste management company operates in secondary and exclusive markets in the United States and Canada, which means less competition and higher margins. In the meantime, the company is building several renewable natural gas and resource facilities that could come online in the next few years.

The company has made 18 acquisitions this year, which could contribute $500 million to its annual revenue. Meanwhile, management expects to continue its mergers and acquisitions (M&A) drive in the second half of the year to increase its contribution from acquisitions to $700 million by the end of the year. Growth prospects look healthy.

Fortis

The fourth item on my list is Fortis (TSX:FTS), a utility company focused on electricity and natural gas that serves 3.5 million customers in Canada, the United States, and the Caribbean. Because approximately 99% of its assets are regulated, the company’s finances are less susceptible to market volatility. With healthy cash flow, the company has increased dividends for 50 consecutive years and has a forward yield of 4%.

Meanwhile, Fortis is implementing its $25 billion capital plan, which covers the period 2024-2028. These investments could result in an annual increase in the interest rate base of 6.3% through 2028, improving the company’s financial position. Moreover, the central bank has cut interest rates twice this year, and investors are hoping for another cut this year. Given the company’s capital-intensive business, lower interest rates could reduce its interest burden and thus improve its profitability.

Enbridge

Enbridge (TSX:ENB) operates a highly contracted midstream energy business, with approximately 98% of its cash flow coming from long-term cost-of-service contracts. Since approximately 80% of its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is indexed to inflation, its finances are less susceptible to an inflationary environment. As such, the company generates stable and predictable cash flow, allowing it to raise dividends at an annual rate of 10% for the past 29 years.

In addition, Enbridge has expanded its presence in the natural gas utilities sector with the acquisition of two assets in the United States and is working to complete a third transaction. It is also increasing its asset base by $24 billion of secured capital, with annual deployments of $6-7 billion. Given its healthy growth prospects and stable cash flow, Enbridge has the potential to continue to grow its dividend, making it an excellent buy.