3 no-brainer stocks you can buy right now for under $50

Investing in real estate usually requires a significant amount of initial cash, as does starting a new business. But one of the best things about investing in stocks is that it doesn’t take a lot of money to get started. Here are three stocks you can buy for under $50 right now.

1. Ares Capital

You only need about $20 to buy one share. Ares Capital (ARCC 0.40%). And you can make a lot of money with this stock.

Ares Capital ranks as the largest publicly traded business development company (BDC). It focuses on providing funding to the upper end of the middle market. This, along with the company’s diverse portfolio, means Ares Capital’s investments are less risky, which is good news for long-term investors.

One of the key features that stand out about Ares Capital is its dividend. Currently, BDC’s dividend yield exceeds 9.5%. The company has a solid dividend track record, with dividends steadily increasing for 14 consecutive years.

This stock also has a great track record of beating the market. Ares Capital’s total returns were more than 75% higher than before. S&P 500It has been since the initial public offering (IPO) in 2004.

2. Enterprise Product Partner

Enterprise Product Partner (EPD -0.18%) It’s cheap in two ways. The stock is currently priced below $28, and more importantly, the valuation is attractive with a forward earnings multiple of approximately 10.1x.

This midstream energy leader offers investors a hefty distribution yield of over 7.5%. The limited partnership has been increasing its distribution for 25 consecutive years, with a compound annual growth rate approaching 7%.

Unlike many players in the energy sector, Enterprise Products Partners’ business model is relatively stable. The company’s more than 50,000 miles of pipelines and other midstream assets generate consistent revenue regardless of oil and gas prices.

This stability is evident when we look back on some difficult times over the past few decades. For example, Enterprise Products Partners’ cash flow per unit increased during the financial crisis of 2007 and 2008 and decreased only slightly during the oil price crash between 2014 and 2017.

3. Pfizer

Pfizer‘S (PFE -0.43%) A stock price below $28 is clearly below our threshold of $50. But considering the sharp decline along with falling sales and profits, you might be wondering how a big pharma stock could be an obvious buy. But I think the argument for Pfizer is pretty compelling.

I don’t expect Pfizer’s sales and profits to continue to plummet any further. why? The decline is due to lower demand for the company’s COVID-19 products. I expect 2024 to be Pfizer’s worst year for COVID-19 sales.

Pfizer’s non-COVID revenues will grow at a solid pace for the rest of the decade. Of course, the company is facing a wave of patent expirations on its top-selling products. However, the company’s new products and new indications for already approved products will more than offset the decline in sales caused by the patent cliff.

Big pharmaceutical companies believe business development deals could add about $25 billion to their annual sales by 2030. Pfizer is already off to a good start in this space with its acquisitions of Biohaven and Seagen.

Meanwhile, Pfizer’s stock price is trading at 12.4 times expected profit, making its valuation attractive. The company’s future price-to-sales multiple is lower than that of almost every other large pharmaceutical company, even assuming no COVID sales at all. Pfizer also currently pays a dividend of over 6%.

Is Pfizer easily available for less than $50? I think so.