When markets feel unpredictable, the smartest step is sometimes to keep it simple and to stay with Canadian shares that have proven to deliver in the long term. For Canadian investors with only $ 500 to put to work today, three names stand out as no-brainers. Those are Enbridge (TSX: ENB), Manulife Financial (TSX: MFC), and Air Canada (TSX: AC). Each of these Canadian shares comes from a different corner of the market, but offer all the clear reasons to buy now, even with unique risks.
Enbridge
Enbridge has been a core income shares for decades and the latest results underline why. In the second quarter, the record profits before interest, taxes, depreciation and amortization (EBITDA) of $ 4.6 billion. That has risen 7% compared to last year, while generally accepted accounting principles has risen to $ 2.2 billion of $ 1.8 billion.
Year after year, sales increased by more than 30%, a reminder that the diversified energy infrastructure is built to withstand cycles. Shares have risen by around 22% in the past year and the Canadian share confirmed its prospects for the entire year. Investors receive a dividend yield near 6%, supported by a distributable cash flow of $ 2.9 billion in the quarter.
The risk is clear. Enbridge has heavy debts, with more than $ 100 billion on the books, and the payment ratio remains high with more than 130%. But management has tens of years of experience in navigating through these waters, and with a backlog of $ 32 billion of projects it is difficult to argue against the pipeline giant who continues to feed investors.
Manulife
Manulife is another no-brainer, although for very different reasons. The insurer and asset manager has been on a role, in which the three -month revenue growth of almost 14% year after year is booked and a huge leap of 72% in quarter of income. The net income over the 12 -month backlog stopped $ 5.4 billion, with a profit margin above 19%.
Shares have risen by 17% in the past year and the appreciation still looks attractive and acts in less than 11 times ahead of income. Investors also dropped a dividend yield above 4%, with room for growth that received a payout ratio of just over 50%.
The Canadian shares are also at almost $ 29 billion in cash, and the capital position looks strong with a debt / equity ratio of only 45%. The most important risk is exposure to global markets and interest rates, but Manulife has proved resilient due to volatile conditions. For long -term investors it is a simple, steadily playing about the growing need for insurance and wealth solutions.
Air Canada
Air Canada is the yoker sign here, but sometimes that is exactly what makes a Canadian stock worth a small gamble. In the past year, the airline has seen its stock wild. It won almost 26% of its lows, even while the disruptions rattle the activities this summer.
The Canada Industrial Relations Board has now declared the strike of the stewardesses illegally and ordered them back to work, while also imposing binding arbitration. That step knew a large overhang for the Canadian shares, although the guidance for the third quarter and the full year was suspended due to the disruption.
Yet the basic principles are better than they look at first sight. Turnover is a backlog above $ 22 billion and the operational cash flow is $ 3.8 billion covered. Acting shares in less than 10 times ahead of income. Despite heavy debts, Air Canada has more than $ 6 billion in cash at hand. Yes, airlines are cyclical and strikes emphasize the risks. But with the international travel question still strong, the Canadian shares has a clear runway for a rebound as soon as the operations normalize.
Bottom Line
For investors who start small, spreading $ 500 offers a mix of safety, income and growth potential over these three Canadian shares. Enbridge offers stable dividends of energy infrastructure, Manulife provides stable profits and a solid payment of financial services, and Air Canada offers a higher risk, but the possibility of obvious returns while restoring short turbulence. Markets will always throw surprises. Yet possession of proven Canadian names in different sectors is one of the simplest ways to set yourself up for success.
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