For investors starting out, it may be daunting and a bit overwhelming deciding which stocks to invest in. Whether you choose dividend stocks or growth stocks, tech stocks or bank stocks, there are lots of decisions that need to be made.
I’m going to list four stocks below that would be great pillars for anyone new to investing to build their portfolio around. These stocks will give you some diversification, dividends, and terrific growth prospects that you can rely on for the long term.
Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is one of Canada’s top banks, and it’s hard to go wrong with adding it to any portfolio. As the years go on, you can collect a great dividend while also taking advantage of capital appreciation. The bank will only continue to pad its profits as the economy grows and more customers use its services.
TD Bank is also diversified, and its U.S. operations allow it to be less exposed to the Canadian economy, thus making it less risky than other bank stocks.
Hydro One Ltd. (TSX:H) is a blue-chip stock that is in a very stable industry, and it has terrific growth prospects with lots of potential to expand in Canada and the United States. The utility company has only been listed on the TSX since 2015 when the Ontario government decided to sell a controlling stake to the public.
With Hydro One being publicly traded, there will be more of an incentive for the company to grow, and we have already seen that with its recent expansion into the U.S. earlier this year. That is just the tip of the iceberg, and more growth and expansion could be in the company’s future as it attempts to further grow sales and profits.
Pure Industrial Real Estate Trust (TSX:AAR.UN) would add a terrific REIT to your portfolio. It focuses on industrial properties, which will see more demand and growth potential as the economy continues to do well. A REIT can provide lots of stability year over year, as it has a strong base of recurring revenue, which also makes growth easier to achieve.
Pure Industrial is well diversified with nearly 170 properties across Canada and the U.S., totaling over 22 million in square feet. The company looks to minimize its risk by targeting primary markets where there are low vacancies and long-term leases already in place.
Air Canada (TSX:AC)(TSX:AC.B) will give you a fourth industry to diversify your portfolio with. With minimal competition and record traffic numbers, Air Canada is a stock that will see plenty of growth opportunities with an expanding economy.
There are not many airlines to choose from in this country, and it has been like that for years, and the recent competition is still very limited. Small airlines can only compete on so many fronts, and the sheer number of flights that Air Canada offers combined with the endless amount of destinations make it almost immune to such small players.
As businesses thrive and disposable incomes rise, we’ll see more business trips, more vacations, and more profits for the airline.
