Whether you are new to investing or a seasoned veteran, it’s never too late to start investing. And while the market does provide plenty of great options to consider, there are some easy stocks that are true gems for any portfolio.
Here’s a handful of stocks to start investing with that will supercharge your portfolio.
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Start with a defensive option that pays good, too
Every portfolio should be well-diversified with options from across the market, including some defensive stocks. Those defensive stocks can provide some growth during downturns, and in many cases, a stable and recurring source of income, too.
Fortis (TSX:FTS) is one such example to start investing with. Fortis is one of the largest utilities in North America, with operations across Canada, the U.S., and the Caribbean. Utilities are incredible defensive options thanks to the lucrative business model they adhere to.
In short, Fortis is bound by long-term regulated contracts to provide its service, for which it is compensated. For as long as Fortis continues to provide that utility service, it generates a recurring and very stable revenue stream. And those regulated contracts often span decades in duration.
That stability not only helps Fortis become a great defensive option to start investing with, but it also allows the company to invest in growth and pay a handsome dividend.
As of the time of writing, Fortis’ dividend works out to a yield of 4.20%. That translates into an income of just over $1,000 on an initial $25,000 investment. But that’s not all.
Fortis has provided annual bumps to that dividend for an incredible 49 consecutive years. This means that long-term investors can reinvest that income until needed and watch it grow even faster.
Add a big bank for income and growth
Another superb option to start investing with is Canada’s big banks. The big banks are often cited as some of the best long-term options on the market and for good reason, too.
The banks offer a stable revenue stream from a mature domestic market, ample growth potential from international markets, and juicy dividends.
And the one bank to consider right now is Bank of Montreal (TSX:BMO). BMO is the oldest of the big banks, and as such boasts nearly two centuries of dividend payouts without fail.
Today that dividend works out a generous 4.97%, making it one of the better-paying options on the market. Using that same $25,000 example above, investors can expect to generate a first-year income of over $1,200.
Oh, and prospective investors should note that like Fortis, BMO has an established cadence of providing annual upticks to that dividend.
Turning to growth, BMO is in an advantageous position over many of its big bank peers. Earlier this year, BMO completed the acquisition of California-based Bank of the West.
The US$16.3 billion deal extends BMO’s presence in the U.S. market to 32 states. It also adds billions in deposits for 1.8 million customers across hundreds of new branches to growing BMO’s network.
Start investing with these stocks now
Both BMO and Fortis represent great long-term options that boast growth and income-earning potential. Even better, they also offer some defensive appeal, which is a good thing to have in a volatile market.
In my opinion, one or both stocks would do well as part of a larger, well-diversified portfolio.
