1.5N Plus
VNP.TO (TSX)
5N Plus is positioned well in the market, specializing in advanced semiconductors and high-performance materials for sectors like renewable energy and medical imaging, which are experiencing significant growth. With a remarkable one-year return of 174.07% and a five-year return of 535.58%, it demonstrates strong financial performance that outpaces the Toronto Stock Exchange's average returns. This makes it an attractive option for investors looking to capitalize on expanding end markets.
Pros:
- Strong historical returns over 1 and 5 years
- Expanding end markets
Cons:
- High beta indicating market volatility
- No dividend information available
2.Freehold Royalties
FRU.TO (TSX)
Freehold Royalties stands out as a solid investment option, boasting a manageable net debt-to-FFO ratio of 1.1x and a strong dividend yield of over 7%. Investors can expect consistent monthly dividends, currently set at $0.09, which translates to a reliable annual income of $1.08 per share. With a one-year return of 14.49% and a remarkable five-year return of 151.99%, this energy royalty company is well-suited for those seeking exposure to diversified properties linked to commodity prices.
Pros:
- High dividend yield
- Diversified properties tied to commodity prices
Cons:
- Negative YTD return
- Dependence on oil and gas market fluctuations
3.Hammond Power Solutions
HPS-A.TO (TSX)
Hammond Power Solutions stands out in the market by focusing on dry-type transformers and power quality solutions, driven by increasing demand in electrification, renewable energy, and infrastructure. With a significant order backlog that has grown 22.4% year-over-year, the company showcases robust growth potential. Notably, it boasts a strong analyst consensus rating of "Strong Buy," reflecting confidence in its future performance.
Pros:
- Strong demand from electrification and renewable energy
- High historical returns over 5 years
Cons:
- Low dividend yield compared to other investments
- Market volatility risk
4.Labrador Iron Ore Royalty
LIF.TO (TSX)
Labrador Iron Ore Royalty stands out as a dividend-focused investment, appealing to patient investors seeking cycle-driven payouts. With a current dividend yield of 5.19% and a forecasted earnings growth of 3.3% annually, it offers potential for larger dividends as iron ore prices rise. While analysts maintain a consensus rating of Hold, the stock presents a 19.84% upside potential based on average price targets, making it a consideration for those looking for reliable income amid market fluctuations.
Pros:
- Cycle-driven dividends with potential for larger payouts
- Established market presence
Cons:
- Negative 5-year return
- Dependence on commodity prices
Final Words
As you consider the best small-cap stocks this January 2026 in Canada, remember the importance of thorough research and comparison among your options. You can explore companies like 5N Plus for potential growth, but take time to assess their performance and fit for your investment strategy.
Frequently Asked Questions
In January 2026, 5N Plus (VNP.TO) has shown a year-to-date return of 15.11% and an impressive 1-year return of 174.07%. The stock has also performed well over longer periods, with a 3-year return of 600.00%.
5N Plus operates in the semiconductor and advanced materials sectors, serving industries such as renewable energy, medical imaging, and pharmaceuticals. They provide a range of products, including low melting point alloys and metallic powders.
5N Plus (VNP.TO) has a market cap of $1.85 billion and a current price of $20.72. The stock has a beta of 1.74, indicating higher volatility compared to the market.
Small-cap stocks like 5N Plus can offer high growth potential but also come with increased volatility and risk. Investors should carefully assess their risk tolerance and consider diversification when investing in this category.
5N Plus has demonstrated exceptional returns, with a 5-year return of 535.58% and a 10-year return of 1626.67%. This performance can be significantly better than many other small-cap stocks, which may not have similar growth trajectories.
Investing in 5N Plus involves risks typical of small-cap stocks, including market volatility and potential operational risks. It's important for investors to perform thorough research and consider market conditions before investing.
