Some invest in high multiple growth stocks while others prefer to shop among companies whose stocks have recently been beaten down. Some investors buy-and-hold while others trade frenetically. Some invest in large companies, some invest in small companies, and others ignore company size and invest in companies of any size as long as they have potential to produce market-topping returns.

My top choices are Wealthsimple Trade and Questrade.The Micro-Cap Advantage: How MicroCap Equities Have Helped Enhance Return and Lower Correlation in Client PortfoliosĮver since stock markets were created, investors have been devising schemes to enable them to beat the market’s average return. You can purchase stocks in Canada through most Canadian brokerage platforms that offer stock and ETF trading. GreenPower Motor Company: Decent growth potential when large EV vehicles (buses and cargo trucks) take off.Inovalis REIT: European office portfolio.BTB REIT (BTB.UN): High-yield commercial REIT (Yield: 7.1%).Sangoma Technologies (STC): Stable and powerful growth stock (Five-year CAGR: 61%).Recovery-fueled growth propelled market value too high, pushing the yield to 4.8%. Nexus REIT (NXR.UN): Previously a high-yield stock.Fiera Capital (FSX): High-yield asset management firm (Yield: 7.9%).NanoXplore (GRA): Graphene company, proprietary tech, can be a powerful growth project if its market explodes.Canoe Income Fund (EIT.UN): Diversified high-yield growth fund (Yield: 9.3%).Global Water Resources (GWR): Decent growth stock (five-year CAGR: 20.8%), stable business.There are a few stocks that are strong candidates for the best small-cap Canadian stocks. HIVE Blockchain Technologies Stock (TSXV) Unless otherwise specified, all the stocks below trade on the senior exchange (TSX). The stocks below are mixed between growth and dividend stocks and are in the order of the market cap (from highest to lowest). Consider it against the backdrop of the company’s financials, age, business prospects, growth potential, and other important factors and metrics. Simply put, while the market capitalization is something important that you should look into before making an investment decision, it’s not the only thing you should look at. If it's a mature, healthy business with consistent financials and sustainable dividends, the market capitalization shouldn’t prevent you from investing in a decent small-cap dividend stock. Again, it should be taken into contrast against the company's financials and maturity. When it comes to dividends, people tend to distrust small-cap stocks even more.

So always identify which is which before disregarding a growth stock with decent potential simply because it’s small-cap. Many small-cap stocks represent fully mature companies in relatively niche markets that don’t support enough growth to push the company into mid-cap or higher. In the early days, the company usually has a lower market capitalization than when it reaches saturation point/maturity.īut that’s not always the case. One thing many investors need to understand is that market capitalization, especially in new companies, often corresponds to the growth phase the company is in. ➡️ Buy Stocks With Wealthsimple – $50 Cash Bonus Fifteen of which (along with some honorable mentions) should definitely be on your radar. That alone is an extensive pool and includes hundreds of amazing securities. For this article, I stuck to the $300 million to $2 billion market-cap thresholds. The minimum market cap in the S&P/TSX SmallCap Select Index is slightly over $200 million, whereas the largest is about $2 billion. However, a more authentic and relatively pure source, S&P Global offers a slightly different picture. Mackenzie Investments put small-cap stocks between $100 million and $1.5 billion in market capitalization. The category above it is mid-cap, and below are micro-cap stocks.įor Canada, the definitions vary a bit. If we go by the accepted international practice, or at least the thresholds used in the US (endorsed by Forbes and Investopedia), define small-cap stocks as stocks with a market capitalization between $300 million and $2 billion. What Are The Best Small-Cap Stocks In Canada?īefore we get to the small-cap stocks in Canada, you should understand what small-cap stocks are.

What Are The Best Small-Cap Stocks In Canada?.

Micro cap stocks to buy now