Investing in stocks can be confusing to many people. During times like now, when the market is increasingly volatile, investing can reach a new level of difficult. As a result, many people become hesitant to continue investing. It’s been shown that consistently investing is one way the everyday person can reach their financial goals.
In this article, I’ll discuss three positions I’m actively adding capital to. Perhaps one of these companies could interest you enough for you to consider adding it to your portfolio.
My top renewables company
Around the world, governments and businesses alike are committing to becoming net zero. This means that many organizations across the world are attempting to reduce the amount of carbon they emit. Today, at least 140 countries and 5,230 companies have committed to a net zero target. Because of this, I believe that renewable energy is an area where investors are expected to focus on over the coming decade.
Within the broader renewable energy space, the renewable utility industry is what interests me the most. Brookfield Renewable (TSX:BEP.UN)(NYSE:BEP) is an exceptional company with a great opportunity to lead this industry for years to come. What hinders most utility companies is the ability to scale. Brookfield Renewable has managed to overcome this hurdle, as it operates a portfolio capable of generating 21,000 MW of power. With a global development pipeline of 62,000 MW, I find it hard to find a reason to invest in a renewable utility company other than Brookfield Renewable.
A small cap that could become a big deal
Investors should expect small-cap stocks to be very volatile. This is because small-cap stocks tend to be much earlier along in their growth trajectory. This means that there are many potential hiccups that a company could face along the way. Fortunately for Topicus.com (TSXV:TOI), it has a proven playbook to follow. Once a subsidiary of Constellation Software, Topicus could avoid some of the crucial mistakes that younger companies tend to make.
Like Constellation Software, Topicus is an acquirer of vertical market software businesses. However, investors shouldn’t be worried about competition between these two companies. Topicus focuses solely on the European tech industry, which differentiates it from its former parent company. In addition, Constellation Software provides Topicus a lot of support. For example, six members of Topicus’s board of directors are executives from Constellation Software, which incentivizes the larger company to see Topicus succeed.
This is a top dividend stock
Readers of the Motley Fool that are familiar with my writing will know that I tend to focus on growth stocks. However, I do hold a small number of dividend stocks in my portfolio. Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is one example. Listed as a Canadian Dividend Aristocrat, Bank of Nova Scotia is a premier dividend company. It has managed to pay a dividend to shareholders in each of the past 189 years.
That being said, there is a lot of growth potential here. Bank of Nova Scotia is dedicated to growing in the Pacific Alliance. This is a region which includes Chile, Columbia, Mexico, and Peru. It’s estimated that the economies in these countries could grow much faster than Canada and the United States in the coming years. If that happens, then Bank of Nova Scotia could see a massive boost in its performance.
