Three Indefensible Stocks to Purchase with $100 Immediately

Few things are certain on Wall Street. Short-term Dow Jones Industrial Average, S&P 500, and Nasdaq Composite direction predictions are nearly impossible. These three major stock indices have fluctuated between bear and bull markets for four years. Wall Street is great because it benefits the patient. Stocks have outperformed bonds, commodities, housing, and bank CDs in long-term gains. Thus, every major stock market slump has offered long-term investors a purchasing chance

Most internet brokerages have eliminated hurdles that held individual investors away, making things even better. Many brokers have abolished minimum deposits and commissions for major U.S. exchange common stock trading. Any amount of money—even $100—can be invested. If you have $100 to invest and won't need it for bills or emergencies, these three stocks are no-brainers

NextEra Energy The first great stock to buy with $100 is NextEra Energy (NYSE: NEE), America's largest electric provider by market cap.

Investors choose utility stocks because they have low volatility and higher dividend yields than the market. Treasury bond yields have risen drastically over the previous two years due to aggressive Fed rate hikes. Utility equities like NextEra Energy paid for bonds' safer income. Thankfully, this vulnerability appears to be temporary and gives an opportunity to acquire a world-leading energy company cheaply.

First, NextEra could profit from the Fed slowing rate rises. Traditional utility equities may appeal to income seekers again as the yield curve normalizes and short-term yields decline.

Also consider NextEra's operating cash flow predictability. Most homes and tenants require electricity for appliances and HVAC. Electricity demand is constant year after year. Being able to reliably anticipate its cash flow one or more years in ahead has given management the confidence to start new initiatives, make acquisitions, and sustain above 10% annual dividend increases over the previous decade.

NextEra Energy's leading renewable energy portfolio remains its main catalyst. The corporation had 70 GW of operational capacity on Sept. 30, 34 GW of which was renewable. This electric utility has the most solar (6 GW) and wind (23 GW) capacity in the world.

Despite being expensive, green-energy initiatives give NextEra a clear advantage. In a low-growth market, wind and solar are lowering energy generating costs, resulting in consistent high-single-digit adjusted profits growth. Over the past five years, NextEra stock has averaged a forward-year earnings multiple of 26, but opportunistic investors may buy shares for 15.

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