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The TSX advanced slightly to close at 21,236.50 on the first trading day of the year. However, despite the large trading volume on January 4, 2022, many investors are still looking for the big stocks to buy for this year. If you have a limited budget, Trans Alta Renewable Energy (TSX: RNW), Absolute software (TSX: ABST) (NASDAQ: ABST), and small waterfalls (TSX: CAS) is a price-friendly stock you can collect this month.
All three stocks trade for less than $20 a share but offer good dividend yields. Furthermore, prices could go up in 2022, and therefore, your total returns could be higher.
TransAlta, which works in renewable energy, did not deliver in 2021 (-9.92%), despite the rebound of clean energy companies this year. This $4.99 billion company boasts highly operational and contracted renewable generation facilities such as wind, hydro and gas.
The management’s primary focus is on the development of renewable energy assets. Facilities in Canada are owned by the company, while TransAlta has economic interests in assets in Australia and the United States. In the nine months ended September 30, 2021, consolidated revenue increased 7.79% to $332 million compared to the same period in 2020.
Net profit of $97 million during the period represents an increase of 148.72% over the same period last year. TransAlta is one of Canada’s largest wind generators, although seasonal changes affect business results. Wind volumes were the largest in the first and fourth quarters, while water assets recorded the highest volumes in the second and third quarters.
On the dividend front, TransAlta is paying a whopping 5.02% dividend. The current share price is $18.44.
Work from anywhere in the world
Absolute Software is trading at a discount, considering that the current share price of $11.23 is 25.38% lower than last year. However, based on market analysts’ expectations, the price could rise by 69.22% to $19.02 in 12 months. Note that this technology stock is a dividend payer (2.77% dividend) – a rarity in this sector.
The $559.98 million company is proud to have the industry’s first self-healing Zero Trust (endpoint resiliency) platform. The Absolute platform ensures maximum security and uncompromised productivity. In the first quarter of fiscal year 2022 (the quarter ended September 30, 2021), revenue was up 53% compared to the first quarter of fiscal year 2021. However, the company had a net loss of $7.6 million.
According to Kristi White, President and CEO of Absolute, the acquisition of NetMotion has helped the company make significant progress in its product integration stages. The company is well positioned to thrive in the world of work from anywhere.
Cascades fly under the radar, even though the nature of the business is essential in today’s world. The $1.39 billion company provides sustainable, innovative, and value-added solutions for packaging, hygiene and recovery. It also has extensive experience in recycling.
In the third quarter of 2021, net profit decreased 34.69% compared to the third quarter of 2020, despite an increase in operating income of 35.19% to $73 million. “Our third-quarter performance reflects the continuing dynamic nature of the macro environment in North America,” said Mario Blurd, Cascades President and CEO.
However, the demand for packaging and textile products will not diminish, thus, this ensures the stability of the business. Cascade is trading at $14.01 per share and paying a decent dividend of 3.43%.
The three price-friendly stocks are solid options to start in 2022. Each company has remarkable growth potential, as Canada approaches the stage of full economic recovery.