There’s no shortage of great stocks to buy on the market right now. Among those great picks are a handful of TSX stocks that could help set you up for life.
Here’s a quick look at two of those stocks, and why they belong in your portfolio.
You want a stock that can provide growth and income
Have you invested in any of Canada’s big banks? It would be nearly impossible to note TSX stocks that can help set you up for life without mentioning at least one bank stock.
And the bank stock for investors to take a closer look at right now is Bank of Montreal (TSX:BMO).
BMO is the oldest of the big banks, and as a result, has been paying out dividends without fail for nearly two centuries. Today, the yield on that dividend works out to an appetizing 4.66% yield.
This means that investors who drop $30,000 into BMO today will earn just over $1,400 in just the first year. That’s because prospective investors who are not ready to draw on that income can reinvest it until needed. This allows your nest egg to grow on autopilot for what could be decades of uninterrupted growth.
Oh, and speaking of growth, BMO is full of long-term potential. That’s thanks to the acquisition of California-based Bank of the West, which was completed last year.
The acquisition pushed BMO into position as one of the larger banks in the U.S., with a presence in 32 state markets.
While the growth- and income-earning potential are impressive, investors should also take notice of the relative stability around Canada’s big banks. Specifically, the banks have fared much better than their U.S.-based peers during times of volatility.
That defensive appeal is just one more factor for investors looking for TSX stocks to help set you up for life to consider.
You also want a stock that can provide some defensive appeal
Speaking of defensive appeal, I would be remiss if I didn’t mention another superb long-term gem to consider.
That option to note is BCE (TSX:BCE). BCE is one of Canada’s big telecoms and now trades at a huge discount. As of the time of writing, the telecom trades down nearly 40% over the trailing two-year period.
Much of that decline can be attributed to the rising interest rates we’ve seen over the past year. The important takeaway for investors here is that short-term volatility isn’t a major disruptor to a defensive business like a telecom.
BCE’s core subscription business continues to generate strong results. In fact, some of its segments, specifically the wireless and retail internet units continue to see strong, record-breaking growth.
Again, the focus for long-term investors should be on long-term gains. And speaking of gains, let’s talk about BCE’s dividend.
BCE offers investors a quarterly dividend, which it has paid without fail for well over a century. Additionally, the company has established a precedent of providing annual upticks to that dividend going back well over a decade.
As of the time of writing, that dividend currently carries an insane yield of 8.58%. Part of the reason for that swelled dividend comes thanks to the stock price dropping to 52-week lows in recent weeks.
In short, BCE remains a long-term gem with defensive appeal that could be one of the TSX stocks to help set you up for life.
Yes, these TSX stocks can set you up for life
No stock, even the most defensive, is without some risk. That’s why the importance of diversifying your portfolio cannot be understated enough.
Fortunately, in the case of both stocks mentioned above, there’s plenty of diversification to note. Additionally, investors can take solace in knowing that these two stocks provide growth- and income-earning potential and defensive appeal.
In my opinion, one or both stocks should be core holdings in any, well-diversified portfolio.
