When markets get choppy and unpredictable, sometimes the best move is to focus on high-quality, reliable companies that have stood the test of time. For Canadian investors looking to invest $500 right now, three standout picks offer compelling value, even in different sectors and with varying risk profiles. These include Enbridge (TSX:ENB), Manulife Financial (TSX:MFC), and Air Canada (TSX:AC).
Enbridge: A Reliable Dividend Powerhouse
Enbridge remains a cornerstone of many Canadian income portfolios, and for good reason. In its latest quarter, the energy infrastructure giant reported record EBITDA of $4.6 billion—up 7% year over year—while net earnings rose from $1.8 billion to $2.2 billion. Revenue also surged over 30% from a year ago, highlighting the resilience and strength of its diversified operations.
With shares up around 22% over the past year and management reaffirming full-year guidance, the company continues to deliver consistent performance. Enbridge currently offers a dividend yield close to 6%, supported by a strong $2.9 billion in distributable cash flow for the quarter.
That said, the company’s debt load—over $100 billion—is a key risk, as is its high payout ratio of 130%+. But Enbridge’s long-term project pipeline of $32 billion and its proven management track record suggest the company remains well-positioned to deliver reliable returns for income-focused investors.
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Manulife: Steady Growth and Strong Fundamentals
Manulife Financial is another strong option, offering long-term growth potential along with solid income. The insurer and asset manager reported a 14% increase in revenue and a 72% surge in earnings in its most recent quarter. Over the past 12 months, net income has reached $5.4 billion, and its profit margin stands at an impressive 19%.
The stock is up 17% year over year, yet still trades at an appealing valuation—less than 11 times forward earnings. Manulife also pays a dividend yielding over 4%, with plenty of room for increases thanks to a modest payout ratio just above 50%.
With nearly $29 billion in cash and a conservative debt-to-equity ratio of 45%, the company is on firm financial footing. Its main exposure is to global economic trends and interest rate volatility, but Manulife has consistently demonstrated its ability to weather macroeconomic turbulence. For investors seeking a dependable and diversified financial stock, it’s a strong bet.
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Air Canada: A Calculated Risk With Upside Potential
Air Canada represents the more speculative pick of the three—but with potential upside that may reward patient investors. The airline’s stock has seen significant volatility over the past year, but it has recovered nearly 26% from its lows, even amid challenges like labour disputes and operational disruptions this summer.
While not for the faint of heart, Air Canada offers an opportunity to tap into the travel sector’s ongoing recovery. As international travel picks up and cost efficiencies improve, the airline could benefit from increased demand and rising profitability.
There are still risks—particularly from fuel prices, labour issues, and global economic uncertainty—but for investors willing to accept some turbulence, Air Canada may offer long-term gains from a relatively small investment.
Bottom Line
Whether you’re looking for dependable dividends, stable growth, or speculative upside, these three Canadian stocks each bring something different to the table. With $500, Enbridge, Manulife, and Air Canada offer a well-rounded starting point for any investor looking to put their money to work in today’s market.
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