Investing is not just for the rich. Of course it takes money to make money. However, it doesn’t last a lot of money to start making money by investing in shares.
Of course, you still need to find great companies to buy. However, that is not a difficult task. Here are three stocks under $50 that you can buy right now, hands down.
1. Business Product Partners
How do the fuels that heat your home in winter and power your vehicles all year round get to where they need to be? Largely via pipelines.
Partners for business products (NYSE:EPD) ranks as one of the leading pipeline operators in the US. You can buy one share for less than $30 (technically it’s one unit as the company is a limited partnership).
Enterprise Products Partners pays a quarterly distribution with a return of 7.25%. With this juicy yield, the stock doesn’t need to rise much to deliver exceptional total returns. In fact, Enterprise has grown its distribution for 25 years in a row at a compound annual growth rate of about 7%.
However, I think this midstream energy stock should deliver some pretty good returns without the distributions. Demand for the fossil fuel Enterprise transportation assets – especially natural gas and natural gas liquids – is likely to grow despite increased adoption of renewable energy sources.
It also helps that Enterprise Products Partners shares are cheap with a price-to-earnings ratio of less than 10.6. For comparison: the S&P500 trades at 20.7 times forward earnings, while the forward earnings of the energy sector in the S&P 500 is 13.
2. Intel
Intel (NASDAQ: INTC) has been a technology giant for decades. The company’s chips are used in PCs, data center servers, Internet of Things devices and more. The share price is currently hovering around $36.
Granted, Intel has made some mistakes that have hurt its growth. The company did not effectively take advantage of the capabilities of mobile devices. It lost ground to cheaper PC chips. And it has effectively ceded the market for discrete graphics processing units (GPUs). Nvidia And Advanced micro devices.
However, artificial intelligence (AI) is a huge market for Intel. The company recently unveiled its new Gaudi AI chips, which it says are significantly more cost-effective than Nvidia’s H100 GPUs. With the huge demand for AI chips, the company wouldn’t have to take much market share from Nvidia to become a big winner.
I also wouldn’t overlook the long-term prospects for the foundry business. The company is currently losing a huge amount of money, but management still believes it will be the second largest foundry in the world and reach break-even by 2030. Looking to the future, it’s possible that Intel’s foundry could become a major profit center.
3. Pfizer
Pfizer (NYSE:PFE) has been a household name for a long time. The company is one of the largest drug manufacturers in the world and markets several blockbuster drugs and vaccines. You can buy one share of Pfizer for less than $26.
At first glance, Pfizer might seem like the last stock you’d want to buy. The company’s declining COVID-19 revenue is weighing on overall revenue and profit. The company also faces the loss of patent exclusivity on several best-selling products in the coming years.
However, there is more to the story. Pfizer expects that the launch of new products and new indications for existing products will generate more than enough additional revenue to offset the negative effects of the impending patent cliff. The company’s business development deals could add another $25 billion in new annual revenue by 2030.
Like Enterprise Products Partners, Pfizer doesn’t need to see much stock price appreciation to be a winner for investors. The drugmaker’s dividend yield is over 6.6%. Chief Financial Officer David Denton confirmed in the January fourth-quarter earnings call that increasing the dividend remains the company’s top capital allocation priority.
Should you invest €1,000 in Pfizer now?
Consider the following before buying shares in Pfizer:
The Motley Fool stock advisor The analyst team has just identified what they think is the 10 best stocks for investors to buy now… and Pfizer wasn’t one of them. The ten stocks that survived the cut could deliver monster returns in the coming years.
Think about when Nvidia made this list on April 15, 2005… if you had $1,000 invested at the time of our recommendation, you would have $518,784!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including portfolio building guidance, regular analyst updates, and two new stock picks per month. The Stock Advisor is on duty more than quadrupled the return of the S&P 500 since 2002*.
View the 10 stocks »
*Stock Advisor returns April 15, 2024
Keith Speights holds positions at Enterprise Products Partners and Pfizer. The Motley Fool holds positions in and recommends Advanced Micro Devices, Nvidia, and Pfizer. The Motley Fool recommends Enterprise Products Partners and Intel and recommends the following options: long January 2025 $45 calling on Intel and short May 2024 $47 calling on Intel. The Motley Fool has a disclosure policy.
3 Stocks Under $50 You Can Buy Right Now With Hand Over Fist was originally published by The Motley Fool
