These TSX stocks can turn a small investment of $300/month into $151,373.

Investing regularly in stocks, even with a small amount, can help you create significant wealth over the long term. For instance, a $300 monthly investment fetching a modest return of 12% per annum can turn into $151,373 in 15 years. This is the power of compounding and the benefit of a disciplined investment approach. 

So if you can spare $300 per month, here are three cheap stocks with upside potential. 

Telus (TSX:T)(NYSE:TU) is a solid long-term investment to play the 5G revolution. Moreover, its ability to generate profitable growth supports its stock price and robust dividend payments. Telus, through its aggressive broadband investment program, continues to expand its PureFibre network and enhance the coverage and speed of its 5G capabilities. This, in turn, strengthens its competitive positioning and drives customer growth.

Telus is well-positioned to deliver solid capital gains for its shareholders. Meanwhile, the telecoms giant continues to enhance its shareholders’ returns through its dividend-growth program. It is worth mentioning that Telus has returned over $21 billion to its shareholders since 2004 through dividends and share buybacks. Meanwhile, its dividend is yielding about 4.7% at current levels. 

Overall, Telus’s diverse revenue streams, ability to grow its customer base, investments in expanding its 5G network, operating efficiency, and solid dividend payment history make it an attractive investment in the long term.

Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) operates a conservative business but delivers solid returns to its shareholders. For context, Algonquin Power has delivered a total shareholder return of 101% in the past five years. Moreover, this less volatile stock is well-positioned to deliver strong earnings in the coming years and enhance its shareholders’ returns. 

Algonquin owns and operates rate-regulated and contracted energy assets that generate solid cash flows and are relatively immune to economic cycles. 

Looking ahead, Algonquin Power expects its rate base to grow at an average annualized growth rate of 15% in the next five years. This growth will likely expand its earnings base and support its growth initiatives and dividend payments. 

Algonquin expects its earnings to grow at a CAGR of 7-9% in the medium term, while its dividend payout ratio of 80-90% is sustainable in the long run. Besides capital appreciation, investors can benefit from its solid dividend yield of 5.5%.

The recent selling in tech stocks has led to a substantial decline in Lightspeed (TSX:LSPD)(NYSE:LSPD) stock. This decline has created an opportunity to buy the shares of this high-growth company at a significant discount. 

Despite tough comparisons, Lightspeed continues to deliver strong organic sales. Meanwhile, benefits from acquisitions further support the growth of this cloud POS service provider.

Lightspeed is confident about delivering 35-40% organic growth in FY23, which is positive. Further, recent acquisitions will likely bolster its growth. 

Overall, the structural shift in selling models towards the omnichannel platforms, its growing merchant solutions, and its focus on entering new verticals and regions bode well for growth. Also, its ability to drive higher revenues from existing customers, growing penetration, and selective acquisitions will likely accelerate its growth.

Shares of Lightspeed are trading at a next 12-month EV/Sales multiple of 2.9, which is significantly low, making it attractive on the valuation front. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

If you have $5,000 to spare, look for TSX stocks that have a history of stable growth and can build…

Are rising energy prices eating up your income? There is a way you can payup your electricity bill for a…

Some investors are still pondering over Cineplex (TSX:CGX) as an investment. Here's a look at whether now is the time…

July 21, 2022 | Karen Thomas, MSc, CFA

Two top TSX dividend stocks to buy are BCE and Enbridge, yielding 5.8% and 6.25% respectively, and providing solid income.

This bear market has me contemplating all of the TSX stocks I own today.

Beginners can reduce overall market income and earn generous passive income every month from 3 dividend-paying ETFs.

Valuations will continue to play major role in driving shareholder returns.

Here’s why I wouldn’t dare to sell these two TSX stocks, despite their continued struggle this year.

These 5 Stocks Under $50 Could Be Great For Building Wealth

In this FREE STOCK REPORT, Iain Butler, and his team at Motley Fool Canada’s Stock Advisor have released a special free report, detailing 5 stocks under $50 that they think are fantastic opportunities in today’s volatile market. Don’t look back five years from now, regretting that you failed to act.

We're helping the world invest better. See our Foolish investing philosophy.

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people around the world achieve their financial goals through our investing services and financial advice. Our goal is to help every Canadian achieve financial freedom and make all levels of investors smarter, happier, and richer.

From breaking news about what is happening in the stock market today, to retirement planning for tomorrow, we look forward to joining you on your journey to financial independence.

© 2022 The Motley Fool Canada, ULC. All rights reserved.