From Spare Change to Stock Market Gains: 3 Stocks to Buy With Your Last $10

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  • Because the stock market has been democratized over time, anyone with even as little as $10 can begin investing.
  • Amcor (NYSE: AMCR): The food and beverage packaging company also pays a dividend to cushion any downside.
  • Canopy Growth (NASDAQ: CGC): The pot stock got a big boost from Germany legalizing marijuana where it has existing medical marijuana operations.
  • Enterprise Products Partners (NYSE: EPD): Owning pipelines and storage facilities means EPD stock gets paid no matter the price of oil and gas.
Stocks to Buy - From Spare Change to Stock Market Gains: 3 Stocks to Buy With Your Last $10

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The stock market used to be a rich man’s game. Only the wealthy could really afford to invest and make money. However, the game has been democratized over time. Today you can start investing in stocks to buy even if you only have $10 available.

Because Robinhood (NASDAQ:HOOD) pioneered commission-free trading, it doesn’t cost anything to buy and sell shares. The stock market and the potential to retire comfortably is within reach of every person, even if you only have a little money to invest. Furthermore, you don’t even have to buy risky penny stocks. In fact, if you have $1 million to put to work, still stay away from penny stocks. You’re far more likely to lose every dollar you put into them than make a killing.

And with the advent in 2017 of buying fractional shares, or just small slivers of a stock, you can even buy shares of Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A), which goes for over $634,000 a share. Just remember, when finding stocks to buy with $10, the most important thing is to start early, commit to making regular investments over time and hold onto your stocks for the long haul. 

So if you want to create generational wealth, and you don’t need the money for bills or for an emergency, these three stocks can launch you on your investing journey today.

Stocks to Buy With Your Last $10: Amcor (AMCR)

green beer bottles in a factory line, ready to be sealed. represents packaging companie
Source: shutterstock.com/zedspider

The first stock to buy with your sawbuck is food and beverage packaging specialist Amcor (NYSE:AMCR). It trades for around $9.50 per share but is down 1% year-to-date and 13% over the last 12 months. However, it has bounced off its 52-week low by double-digit percentages. Here’s why it should go higher still.

Amcor was hit hard by inflation’s impact that dampened consumer spending. The expectations for a dicey economy in the months ahead also weighs on the stock. Yet the food and beverage category is a defensive one during times of turmoil because everyone still needs to eat and drink. But Amcor may also see its product mix shift away from premium products to cheaper items. That’s okay because as consumers shop downmarket they’ll buy cheaper, smaller goods. That, in turn, could require more packaging is needed more often.

Fortunately, AMCR stock has a dividend to help cushion its downside. The dividend yields yields 5.2% annually and the packaging expert is a Dividend Aristocrat, meaning it has increased its payout every year for 25 years or more. If you only have a little money to invest, buying a stock that pays you to own it is a great way to begin.

Canopy Growth (CGC)

The Canopy Growth (CGC) website is open in an internet browser tab.
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A somewhat riskier investment is marijuana stock Canopy Growth (NASDAQ:CGC), which trades for around $8.60 per share. Following legalization in Canada, the entire marijuana industry took off. But it quickly discovered the problems government regulation entails.

Canada slow-walked putting regulations in place and tied up legal pot companies with so much red tape that illegal marijuana was cheaper to buy. Pot stocks fell hard. CGC stock is down 55% from its 52-week high and 99% from its all-time peak back in 2018.

The U.S. didn’t help either. Hoped-for legalization on a national level hasn’t materialized and individual state efforts leave a hodgepodge of rules to follow. Also, because marijuana is still a Schedule I drug under the Controlled Substances Act, companies like Canopy Growth have problems establishing banking relationships.

Yet CGC shares are soaring this year. Canada is reviewing how it screwed up legal marijuana and intends to reduce excise taxes. Germany also finally decriminalized marijuana for personal use. Because Canopy Growth has extensive medical marijuana operations in Germany it is one of only a few pot stocks that can hit the ground running. CGC stock is up over 150% on the news but should keep climbing as the new market opens for business.

Enterprise Products Partners (EPD)

A magnifying glass zooms in on the website of Enterprise Product Partners (EPD)
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If Canopy Growth was a risky stock, then Enterprise Products Partners (NYSE:EPD) is a somewhat more complicated investment. It is still worth your consideration. And don’t be deterred because the stock trades under $30 a share. It just means you need to buy fractional shares of this solid oil and gas middleman stock.

Enterprise Products Partners operates a vast network of pipelines and storage facilities for the oil and gas industry. Because it signs long-term, take-or-pay contracts with customers, Enterprise gets paid no matter what the price of oil and gas is or whether customers take the product or not. 

The only wrinkle in EPD stock’s investment thesis is its designation as a master limited partnership (MLP). While they are required by law to distribute 90% or more of their profits to investors as dividends, they have more complicated tax considerations. For example, you may not want to own an MLP in a normally tax-deferred individual retirement account because you could end up owing taxes

Yet with the long runway of growth ahead for fossil fuels, Enterprise Product Partners is an excellent stock to own. Its dividend also yields a lucrative 6.9% annually. And having also raised its payout for 25 years it, too, is a Dividend Aristocrat. Make sure you grab these and the other stocks to buy.

On the date of publication, Rich Duprey held a LONG position in AMCR stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.


Article printed from InvestorPlace Media, https://investorplace.com/2024/04/from-spare-change-to-stock-market-gains-3-stocks-to-buy-with-your-last-10/.

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