Self-made billionaires like Warren Buffett prioritized saving and investing over spending at an early age. The GOAT (Best of all Time) of investing developed frugal habits that helped him amass important wealth. He made cash from shares. You may emulate his methods and earn money even with restricted capital.
Many TSX shares commerce at lower than $10 per share, however even with restricted funds, your potential earnings could possibly be large. PHX Power Providers (TSX:PHX), Dexterra Group (TSX:DXT), and Black Diamond Group (TSX:BDI) are among the many names you may contemplate as we speak. All three small-cap shares are profitable funding prospects for frugal buyers.
TSX30 winner
PHX Power Providers was ranked twentieth within the 2024 TSX30 Checklist, the flagship program that acknowledges the 30 top-performing Canadian shares. The vitality inventory delivered a 152%-plus total return over three years (based mostly on dividend-adjusted share worth efficiency).
Moreover the comparatively low-cost worth ($8.50), the dividend supply is a juicy 9.4%. Suppose you buy 820 shares. Your $6,970 funding will generate $655.88 in dividend earnings or $163.97 per quarter. PHX paid month-to-month dividends beginning in 2014 after which modified the payout frequency to quarterly in 2023.
PHX Power Providers operates within the oil and pure fuel trade. The $387.2 million firm gives oilfield companies, together with horizontal and directional drilling, survey administration, gyro servicing, and stream companies. It caters to shoppers in Canada, the U.S., Albania, and Russia.
In Q1 2025, income reached an all-time excessive quarterly file of $193.7 million, representing a 17% enhance over Q1 2024. Earnings rose 15% year-over-year to $20.2 million, whereas extra money stream climbed 144% to $18.2 million from a yr in the past. Nonetheless, the newest battle within the Center East may disrupt trade exercise ranges within the coming quarters.
Scalable enterprise mannequin
Dexterra serves various finish markets in Canada and the USA. The $1.2 billion firm gives assist companies for the creation, administration, and operation of infrastructure. Administration takes delight within the capital-light and scalable enterprise mannequin.
The important thing shopper sectors Dexterra serves embrace authorities, aviation, business, defence and safety, schooling, healthcare, and others. Revenues have been rising yearly since 2021. In Q1 2025, internet earnings reached $8.6 million in comparison with the $3.6 million internet loss in Q1 2024.
Dexterra’s near-term priorities are to ship income progress, develop the built-in services administration pipeline, and improve profitability. At $8.80 per share (+14.06% year-to-date), potential buyers can partake within the 4% dividend yield.
Area of interest market
Black Diamond gives modular area and workforce lodging options in North America and Australia. The $573.6 million Calgary-based firm operates and derives income from two predominant segments: Modular Area Options (MSS) and Workforce Options (WFS).
In Q1 2025, revenue soared 287% year-over-year to $5.8 million, representing a 400% bounce in earnings per share (EPS) to $0.10. The MSS phase reported file rental income of $25.5 million. Notably, free money stream (FCF) elevated 80% to $16.9 million versus Q1 2024.
Market analysts’ common 12-month worth goal is $12.54 (+34% potential upside). The present share worth is $9.36, with a corresponding dividend yield of 1.5%.
Worth-friendly
Inventory earnings are relative and never depending on the quantity of funding. PHX Power Providers, Dexterra Group, and Black Diamond Group are price-friendly shares that would reward buyers with substantial monetary good points.
