If you have an extra $100 lying around, you may not immediately think about investing it in the stock market. It takes a big chunk of cash to build wealth, right? Not necessarily.
With $100, you can pick up some great stocks that could help you construct a winning portfolio over time. After a few years, instead of just $100, you may find yourself with a whole lot more.
The big question is: Which stocks should you choose to set you on the right path? Growth stocks are a great idea -- because once the economy improves, they could take off. Dividend stocks also are good buys because they offer passive income, no matter what the economy is doing.
Healthcare is the perfect place to find both types of players. Let's check out three to buy now. With your $100, you could go all in on one or buy a bit of each in the form of full or fractional shares.
1. Teladoc Health
Teladoc Health (TDOC +5.05%) is a leader in the global telemedicine market, which is growing in the double digits. And Teladoc's own double-digit growth in annual visits and revenue in the later stages of the pandemic show that this business can shine well beyond the health crisis.
The stock suffered last year for one big reason: Teladoc posted billions of dollars in non-cash goodwill impairment charges linked to an acquisition. That worried investors because it seemed to push the idea of profitability further away.
NYSE: TDOC
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But since the start of the year, Teladoc has shifted focus. It's made moves to better match the company's cost structure to the pace of growth and aims to grow and favor the path to profitability at the same time.
These efforts are starting to bear fruit. In the first quarter, consolidated revenue and consolidated adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) beat Teladoc's expectations.
Today, the stock is trading for about $25. Trading at its lowest ever in relation to sales, Teladoc is a steal right now.
2. Axsome Therapeutics
Axsome Therapeutics (AXSM 0.08%) is an up-and-coming specialist in central nervous system disorders. Last year, the company launched its first two products. One is sleep disorder drug Sunosi, which it bought from Jazz Pharmaceuticals, and the second is Axsome's own -- an antidepressant called Auvelity. Both products could eventually bring in blockbuster revenue, according to company and analyst predictions.
I like Axsome because all of its pipeline programs are in phase 2 development or further along. That means, if all goes well, the biotech may launch more than one product over the next few years. And in the not-too-distant future, Axsome could become a multiproduct company with significant revenue growth.
Next up for Axsome is a migraine candidate that it aims to submit to regulators later this year. The company also has reported positive phase 3 data for a candidate for Alzheimer's disease agitation.
Right now, the stock trades for $75 a share. That's after big gains last year. But this biotech could deliver more over time, considering it's in the early stages of its growth story.
NASDAQ: AXSM
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3. Pfizer
You'll love Pfizer (PFE +0.11%) for its dividend -- and an exciting new phase of growth on the horizon. Let's talk dividend first. Pfizer has raised it for the past 14 years and continues to make increases a priority. Right now, the company will pay you $1.64 per share annually, which represents a yield of 4.27%, just for investing in the company.
Now let's talk about the future. Pfizer's set to face patent expirations on some blockbuster products, but it's prepared. It aims to launch 19 new products or indications over an 18-month period.
This is a record for Pfizer. These potential new revenue sources and assets gained through acquisitions should more than compensate for declines in older products' revenue.
Pfizer could reach as much as $84 billion in revenue -- not counting its coronavirus products -- in 2030. That's up from about $45 billion last year. This, too, excludes coronavirus product revenue.
NYSE: PFE
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Pfizer shares trade for about $38 today. At 11 times forward earnings estimates, they look like a bargain, considering the growth to come and dividend payments in the meantime. All of this makes Pfizer a great place to grow your $100.
