New investors often struggle with finding the best mix of stocks to invest in for long-term gains. Fortunately, the market gives us plenty of options to consider. That includes the following two stellar Canadian stocks for beginners, which are great buys right now.
Start with a great long-term gem
Adding one or more defensive stocks to your portfolio can help to offset market volatility. And if you choose the right defensive stock, it can also be a source of income and growth that can last for decades.
That’s part of the reason why Fortis (TSX:FTS) is one of the Canadian stocks for beginners to consider this month. Fortis is one of the largest utilities in North America, with a massive footprint that blankets parts of Canada, the U.S., and the Caribbean.
The overwhelming majority of Fortis’s business is bound by long-term, regulated contracts that span decades. This means that the company generates a reliable source of revenue, which allows it to invest in growth and pay a handsome dividend.
As of the time of writing, that dividend works out to a respectable 4.42% yield. Prospective investors should also note that Fortis has provided annual upticks to that dividend without fail for an incredible 50 consecutive years.
In other words, Fortis is one of the great Canadian stocks for beginners to consider right now.
Add one of Canada’s big banks
It would be nearly impossible to compile a list of great Canadian stocks for beginners without mentioning at least one of Canada’s big banks. In short, the big banks offer investors growth and income-earning potential backed by a reliable revenue stream.
But which bank should investors consider investing in right now? That would be Bank of Montreal (TSX:BMO).
BMO is the oldest of Canada’s big banks and has been paying out a juicy dividend for nearly two centuries without fail. Today, the bank offers a juicy 5.31% yield, which makes the bank a superb buy-and-forget candidate.
BMO also offers investors significant long-term growth potential. Earlier this year, the bank completed the acquisition of U.S.-based Bank of the West. The deal added hundreds of new branches to BMO’s U.S. network, expanding its presence to 32 states. The deal also brought with it 1.8 million new customers and billions in loans and deposits.
As of the time of writing, BMO is down over 9% year to date. This makes it a superb time to buy what is otherwise a stellar long-term option at a discounted price right now.
Buy these two Canadian stocks for beginners today
All stocks, even the most defensive, carry some risk. That’s why the importance of diversifying your portfolio is so important. Fortunately, both BMO and Fortis offer a substantial defensive moat while also boasting growth and income generation appeal.
In my opinion, one or both stocks should be core holdings in any well-diversified portfolio.
