Stocks under 50 dollars: Looking for quality low-cost stocks that offer growth and dividend income? Here are 6 high-caliber options. This post contains ads by Monumetric and affiliate links. Please note that this blog post is not investment advice and I am not a licensed advisor. This article is for entertainment purposes only. All opinions are my own.
When you are investing with little money, it can be challenging to find quality stocks under 50 dollars that offer growth and dividend income.
Fortunately, zero commission brokers like WealthSimple have come in and eliminated commission costs. In turn, investing in stocks has become more accessible and affordable than ever.
But even with reduced commission costs and easy access, you still have to find quality stocks if you want to make money.
The problem is that most quality stocks are expensive. Stocks like Apple cost $180 per share, and the cost of one share of Amazon is over $3,000.
Frankly, the average investor simply can not afford this. It’s discouraging to not be able to afford to buy a share when you are new to investing.
In this post, I will highlight six high-caliber stocks under 50 dollars that pay dividend income.
Let’s dive in.
Stocks Under 50 Dollars Can Build Your Portfolio’s Foundation
In truth, I created this list of stocks for myself.
In fact, I already own most of them.
I have been using a zero-commission broker to dollar cost average into these high-caliber dividend stocks.
Over time, the dividend income will build up and provide me with more income to reinvest.
If you find yourself with less disposable income to invest, you definitely do not want to waste your small savings on risky investments.
What you want are high quality stocks that will provide consistent growth and dividend income for decades. Basically, you want to own the best stocks that exist. Compound interest will make you rich.
Criteria for Stocks Under 50 Dollars
Although these stocks cost less than 50 dollars per share, this list does not include any penny stocks or speculative growth stocks.
This is a list of quality stocks under 50 dollars that pay dividend income.
Furthermore, the stocks on the list have strong brands or unique positions in their markets, long histories of paying and raising dividends, reasonable dividend payout ratios, pricing power, and most importantly, the underlying assets are excellent businesses.
Check out these seven stocks if you are an investor looking for stocks under 50 dollars to invest in:
6 Stocks Under 50 Dollars
Savaria – Ticker: SIS
Market capitalization: $1 billion
P/E Ratio: 40
Dividend yield: 2.61%
Price: $19.16 CAD (as of Jan 3, 2022)
Annual dividend per share: $0.5004 CAD
Savaria is a global leader in accessibility. They manufacture products that help people maintain their mobility.
From my standpoint, Savaria is an excellent stock to diversify your portfolio. Adding a company that manufacturers accessibility products is uniquely different from other sectors of the market.
When this article was originally published on January 13, 2021, each share of SIS cost $15.21. Since then, shares have climbed to $19.16 per share.
At a market capitalization of $1 billion, the stock is trading at 40 times earnings (P/E ratio). Meaning it’s a small cap stock with potential for growth depending on the size of the market.
At the same time, Savaria pays a 2.61% annual dividend yield and it is distributed monthly.
For each share of Savaria you own, you will earn $0.5004 annually.
And it’s possible the dividend could increase as well. Savaria most recently raised its dividend by 4.17% in September 2021.
Park Lawn Corporation – Ticker: PLC
Market capitalization: $1 billion
P/E Ratio: 39
Dividend yield: 1.10%
Price: $41.50 CAD (as of Jan 3, 2022)
Annual dividend per share: $0.456 CAD
Park Lawn Corporation (PLC) is the largest publicly traded funeral, cremation company, and cemetery provider in North America. They are the fastest growing company in their industry. To achieve growth, they focus on acquisitions, organic growth, and they are prepared for the aging baby boomer demographic.
Similar to Savaria, Park Lawn Corporation (PLC) offers a unique opportunity to diversify your portfolio, add dividend income, and own a stock with the potential for growth.
I previously covered PLC in a post on growth stocks that could eventually turn $1,000 into a lot of money.
If you just averaged into Park Lawn Corporation in a zero commission broker until you have $1,000 or so, you will earn dividend income and gain the potential for tremendous long-term growth.
Of course, that depends on PLC continuing to execute as well as they have. They will need to continue to successfully acquire and integrate acquisitions.
At the time this post was originally published on January 13, 2021, each share of PLC was $27.98. Since then, the price has risen to $41.50 per share.
The P/E ratio is high at 39, but this is to be expected of a company that is focused primarily on growth.
Considering the annual funeral business in the U.S. is around $20 Billion, PLC may have a lot of room to grow their business. Their market capitalization is currently around $983 million.
As for the dividends, the dividend yield is a modest 1.10% annually. It used to be paid monthly, but the company recently switched to a quarterly payment schedule.
Related: Growth Stocks – $1,000 in Each of These (4) Stocks Could Make You Rich
Enbridge – Ticker: ENB
Market capitalization: $100 billion
P/E Ratio: 17
Dividend yield: 6.96%
Price: $49.41 CAD (as of Jan 3, 2022)
Annual dividend per share: $3.44 CAD
Enbridge (ENB) is an energy stock with a juicy dividend.
Enbridge is an energy infrastructure company with platforms in crude oil, liquids and natural gas pipelines, and regulated gas and renewable power generation.
For the past few years, the stock hasn’t performed well due to low oil demand, pipeline developments, and because it’s in an unfavourable industry.
But even with these challenges, Enbridge has continued to generate a lot of cash.
And they have continued to reward shareholders with juicy dividend raises year after year.
As of January 3, 2022, each share yields a 6.96% dividend annually. After the recent three percent dividend raise, each share pays $3.44 annually, paid quarterly.
If you are an investor in Canada looking to buy Canadian stocks, your lowest cost option will be opening an account with WealthSimple. As long as you only buy Canadian stocks, there are zero commissions. If you open an account with WealthSimple through my link, you will receive $10 to trade after you deposit and trade $100.
Telus – T.TO
Market capitalization: $38 billion
P/E Ratio: 31.22
Dividend yield: 4.40%
Price: $29.79 CAD (as of Jan 3, 2022)
Annual dividend per share: $1.3096 CAD
Telus is a telecommunications company that provides a range of services. They offer wireless data and voice plans for mobile phones, and other wireless products and services for customers across Canada.
Based on the yield, affordability, and quality of the stock, Telus has quickly become one of my favourite dividend growth stocks.
As of now, the dividend yield is 4.40% or $1.3096 per share annually, paid quarterly.
At a valuation of 31 times earnings, Telus looks like one of the great stocks under 50 dollars to invest and hold for the long term. Because of the low price and high yield, it’s a great stock for DRIP.
Corning Inc. – Ticker: GLW
Market capitalization: $32 Billion
P/E Ratio: 39.66
Dividend Yield: 2.58%
Price: $37.19 USD (as of Jan 3, 2022)
Annual dividend per share: $0.96 USD
Corning Incorporated is a business that is engaged is manufacturing speciality glass and ceramics.
To be more specific, they make glass for smartphones and tablets. It’s likely that you’re reading this post with their Gorilla Glass.
Because of their unique position in the market and ability to innovate, Corning Inc has long been one of my favourite stocks.
In fact, selling it too early was one of my biggest investing mistakes. I originally bought it at $13.80 per shares years ago.
Nevertheless, Corning is still a high quality business in my humble opinion.
Furthermore, they have steadily increased the dividend over the past decade.
Considering that Apple recently awarded Corning $45 million from its advanced manufacturing fund, I believe Corning still has room to grow.
Suncor Energy Inc — Ticker: SU
Market capitalization: $46 billion
P/E Ratio: 19.77
Dividend yield: 5.31%
Price: $31.65 CAD (as of Jan 3, 2022)
Annual dividend per share: $1.68 CAD
Suncor Energy Inc. is a Canada-based energy company in the oil & gas sector.
Since their business is oil, the stock has been pummelled in recent years.
During the height of the pandemic in 2020, due to extremely low oil prices, shares of Suncor dropped below $17 per share.
Frankly, the stock was a bargain at this time. I should’ve bought more of it.
Of course, some people have moral reasons for not acquiring shares of Suncor.
But if you are not opposed to owning an oil stock, and if you don’t mind the volatility of oil prices affecting their business, Suncor is absolutely one of the best Canadian energy stocks out there.
At $31.65 per share, Suncor is still trading at a reasonable 19 times earnings and a low price/book ratio.
Furthermore, Suncor pays a juicy dividend yield at 5.31%.
After they were forced to temporarily slash the dividend in half because of the pandemic, SU recently announced a 100% dividend increase to make up for it.
If you are OK with owning an oil stock, Suncor is a quality dividend stock under $50 that will boost your dividend income.
If you are an investor in Canada investing in USD stocks, consider opening an investment account with Questrade for the lowest cost trading. Low cost brokers in Canada charge too high of a conversion fee. Even though Questrade has a commission fee, it will still be cheaper overall for USD stocks. If you open an account with Questrade here through my affiliate link, you will receive $50 worth of free trades.
Stocks Under 50 Dollars – Final Thoughts
Ultimately, the price of a stock should not be the main focus.
The main focus should be investing in the best stocks that offer the highest growth and income potential for the level of risk.
But when you are new to investing, you might not have enough money to buy the best stocks in the world yet.
As such, you can build up your investment portfolio by dollar cost averaging into high quality stocks under 50 dollars.
At the end of the day, buying the best stocks under 50 dollars and holding is a superior option to trading or trying to get rich quickly with low quality assets.
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I am not a licensed investment or tax adviser. All opinions are my own. This post may contain advertisements by Monumetric. This post may also contain internal links, affiliate links to BizBudding, Amazon, Bluehost, and Questrade, links to trusted external sites, and links to RTC social media accounts.
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