Price matters. That’s right, whether you’re talking about cars, computers, streaming services, or stocks.
Of course, the price of a stock doesn’t really reflect the value of the company itself. A stock with a low stock price may in fact be more expensive from a valuation standpoint than a stock with a much higher stock price.
However, high stock prices can eliminate some investors who might be interested in a stock. Not all brokerage firms support the purchase of fractional shares. And even with those that do, not all inventory is included.
If the stock price is a key consideration for you, the good news is that there are plenty of affordable, high-quality stocks out there. Here are three obvious stocks to buy right now for under $ 100.
1. Brookfield Renewable Energy
You have the choice between two actions with Brookfield Renewable Energy (NYSE: BEP) (NYSE: BEPC). The limited partnership trades under the ticker BEP, while the company trades under the ticker BEPC. But they have the same underlying activity. And both cost around $ 40 per share.
Why buy Brookfield Renewable? Renewable energy is one of the best trends to bank on over the next 10 years – and possibly decades to come. Brookfield Renewable ranks among the top leaders in renewable energy.
Countries and large companies do not have the opportunity to reduce carbon emissions without a major increase in the supply of renewable energy. About three quarters of emissions come from the production of energy and electricity.
This creates a huge long term opportunity for Brookfield Renewable. It is an opportunity that the company intends to seize. The capacity of Brookfield Renewable’s 31 gigawatt development pipeline is more than 150% greater than its current capacity. The stock is expected to generate average annual total returns of nearly 15%.
2. Cresco Laboratories
There is also another major trend related to going green in a very different way. Cannabis is now a booming industry. Cresco Laboratories (OTC: CRLBF) is a major player in the rapidly growing US cannabis market.
The company recently opened its 40th nationwide cannabis retail dispensary. It operates in 10 states, including seven of the country’s 10 largest markets. Cresco is also America’s largest wholesaler of branded cannabis products.
Momentum continues to build for Cresco. The company’s sales are skyrocketing as the cannabis markets in which it already operates expand and Cresco enters new markets.
You can buy a share of Cresco for less than $ 8. But it’s also inexpensive from a valuation point of view. The company expects to reach annualized revenue of $ 1 billion by the end of the year. At Cresco’s current market cap of around $ 2 billion, the stock is trading at just twice the expected sales. This makes Cresco one of the most valued marijuana stocks on the market.
3. The energy of Devon
My colleague Motley Fool Matthew Dilallo recently chose Devon Energy (NYSE: DVN) as his first stock of oil to buy right now. I think Matt is there. And at around $ 40 a share, Devon is quite affordable, even for newbie investors.
The main attraction of this stock is its dividend. Devon offers the highest dividend yield on the S&P 500. The company has paid a dividend for 28 consecutive years.
It is important, however, to note the wrinkle with Devon’s dividend. The company uses a more variable fixed approach. Only a little over 1% of its dividend yield is fixed. The remainder may vary depending on Devon’s excess free cash flow. But based on Devon’s estimates for the rest of the year, its total return is expected to exceed 10%.
Thanks to the rise in oil prices, Devon should be able to maintain this high dividend yield for some time. Even if oil prices fall, the company is still in a strong position to keep dividends afloat.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.Source link