The following are the three best stocks to invest $100 in right now! They’re relatively low-risk investments whose long-term annualized returns will outperform the Canadian stock market’s returns of approximately 7%.
Enbridge stock Enbridge (TSX:ENB)(NYSE:ENB) stock is a bargain right now! At writing, it trades at $39.51 per share — a discount of 24% from its 12-month price target of $52.10. It’d need to appreciate nearly 32% to get to this near-term target.
It’s important to highlight that investors would automatically get a market-beating return from its 8.2% dividend yield alone. That’s right! After buying ENB stock, you can sit back, do nothing, and watch the dividend income roll in.
The largest North American energy infrastructure company supports its dividend with a sustainable distributable cash flow payout ratio of about 70% this year.
What’s more exciting is that growth is expected to resume next year, which will drive its price target higher! Oh — and you can also count on an increasing dividend, which has grown like clockwork for 24 consecutive years.
Brookfield Property stock Brookfield Property Partners (TSX:BPY.UN)(NASDAQ:BPY) stock is making an incredible comeback. The stock rocketed more than 80% higher from its March market crash low.
The global company’s best-in-class real estate assets and management team aren’t going anywhere. In fact, its properties will remain cash cows and generate substantial cash flow for many years to come.
The shares are so cheap that the company has been buying back shares with hand over fist. After buying back a substantial number of shares at US$12 per unit recently, it followed up with a renewed normal course issuer bid that could see the company buying back another 10% of its public float.
The real estate stock remains depressed by about 24% from its pre-pandemic levels, which is attributable to negative impacts from its retail and hospitality assets, which should recover steadily from economic reopenings. The shares trade at US$13.90 (or about CAD$18.24) per unit right now. There’s about 30% upside to get back to its pre-pandemic levels.
Notably, it also pays a 9.6% yield that can be covered by its cash position alone for more than a year. However, it can pay for most of that cash distribution from its cash flow, as it still collects considerable rental income from its diversified real estate portfolio with resilient results from its non-retail and non-hospitality assets.
Brookfield Asset Management stock If you’re interested in BPY but want more diversification, you can consider its parent company and general manager, Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM). You’ll get much more than diversification, though!
I believe that BAM is a young version of Berkshire Hathaway (NYSE:BRKa) that will create generational wealth for shareholders. Other than BPY, the company also manages renewable power, infrastructure, private equity, and credit assets. It has about US$550 billion of assets under management, which will grow from here. About half of these assets under management are fee-bearing capital, which generates perpetual fee revenues.
Now is a wonderful opportunity to accumulate BAM at a discount. At writing, it trades at US$35.24 (or about CAD$46.35) per share. This is a discount of 15% from its 12-month price target of US$41.40. The company aims for 12-15% returns per year in the long run. Therefore, buying BAM stock at a discount should drive even greater returns.
The Foolish takeaway If you have $100 or more to spare, consider taking a position in these three best stocks now. Remember that you have the option to use a commission-free platform.
I believe Enbridge, Brookfield Property, and Brookfield Asset Management will deliver market-beating returns over the next three to five years.
The post The 3 Best Stocks to Invest $100 in Right Now appeared first on The Motley Fool Canada.
Fool contributor Kay Ng owns shares of Berkshire Hathaway (B shares), Brookfield Asset Management, Brookfield Property Partners, and Enbridge. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Brookfield Asset Management, and Enbridge. The Motley Fool recommends BROOKFIELD ASSET MANAGEMENT INC. CL.A LV and Brookfield Property Partners LP and recommends the following options: short December 2020 $210 calls on Berkshire Hathaway (B shares), long January 2021 $200 calls on Berkshire Hathaway (B shares), and short January 2021 $200 puts on Berkshire Hathaway (B shares).
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