Yesterday I looked at three great industries to invest in. Here are three more even better industries to build your portfolio around, so let’s check them out.
1. Telecommunications
Telus (TSX: T)(NYSE: TU) may not be the biggest of the telecoms, but it does boast the best growth numbers when it comes to wireless subscribers, surpassing competitor BCE (TSX: BCE)(NYSE: BCE) in terms of wireless subscribers earlier this year. Telus has been investing billions into network upgrades right across the country to cement its position. Despite these expenses, the dividend is still sitting at $1.52 with a 3.99% yield.
Telecoms are an interesting bunch. As people become more connected through social media and smartphones, it becomes harder to part with this technology. We live in a country with more cell phones than people.
2. Energy
Now it’s time for everyone’s favorite industry, the energy sector, and boy are there a lot of options waiting for you on the TSX. Do you choose heavy crude, light crude, pipelines, Alberta’s oil sands, or Newfoundland’s offshore drilling? Since we have a couple of stable stock picks in other industries, we can be a little more adventurous here and look at Crescent Point Energy (TSX: CPG)(NYSE: CPG). The biggest draw for this company has to be its dividend yield, which clocks in at 6.3% with an annual payout of $2.76. Unlike many of its oil-producing competitors, Crescent Point Energy has focused its energies not on Alberta but Saskatchewan.
Through a series of acquisitions, Crescent Point has solidified its positions in the Torquay formation and the Viking oil play. It also added an additional 10,000 hectares of land last month for $334 million, bringing its total land holdings to 37,500 hectares in just Dodsland, Saskatchewan. This new land, combined with 134,000 boe/day of production, makes this a strong contender for your energy pick.
3. Banking
You can’t go wrong with owning Canadian banks; they survived the crash of 2008, and amid the rubble of the American banks, they have thrived and expanded. One Canadian bank that rises above the rest is the Royal Bank of Canada (TSX: RY)(NYSE: RY). With two consecutive quarters of over $2 billion in profits, it is very hard to look elsewhere for better results. Royal Bank has been growing through its U.S. expansions and the rapid growth of its wealth management division, which grew by 25% in the past quarter.
The stock just hit a new 52-week high Tuesday of $79.45, then closed at $79.19, just below the average price target of $80.00. What also makes it an attractive investment is its dividend, which pays out $2.84 annually with a yield of 3.5%.
