There’s no shortage of great stocks to invest in right now. Even better, many of these stocks trade at a discount and offer income-earning capabilities that can last for decades.
Fortunately, investing isn’t as hard as it sounds. Let’s start by looking at a trio of those great stocks to invest in.
You cannot go wrong here
Most investors are familiar with Enbridge (TSX:ENB). However, most investors aren’t aware of how big and diversified the company is.
Enbridge is best known for its pipeline business, and that segment generates the bulk of the company’s revenue. Part of the reason for that can be attributed to it being the largest and most complex pipeline network on the planet.
More importantly, owing to that sheer size and volume hauled, it’s also one of the most defensive operations on the market. But incredibly, that’s not all Enbridge does.
The company also operates a growing renewable energy business, as well as one of the largest natural gas utilities on the continent.
In short, Enbridge boasts multiple defensive segments that generate a growing source of revenue. That revenue allows Enbridge to invest in growth, and it pays out one of the best dividends on the market.
As of the time of writing, Enbridge offers a quarterly dividend with an insane yield of 7.40%. For those investors with $30,000 to put into Enbridge, that translates into an annual income of $2,220.
And that’s not factoring in growth. Enbridge has provided generous annual upticks to that dividend going back three decades without fail. This fact places Enbridge near the top of any list of dividend stocks to invest in now.
Speaking of defensive stocks
Utility stocks are often noted as some of the best defensive stocks on the market. There’s a good reason for that view. Utilities generate reliable and recurring revenue streams that are backed by long-term regulated contracts.
Utility service is a necessity. And unlike groceries or cell phone service, it cannot be traded down or reduced. This fact alone makes utilities incredibly stable options at the top of any list of stocks to invest in.
Furthermore, the stability and necessity that utilities provide allow them to invest in growth while paying out handsome dividends.
In the case of Canadian Utilities (TSX:CU), that dividend works out to an impressive 5.76% yield. This means investors with $30,000 to drop into Canadian Utilities can expect to earn a first-year income of just under $1,730.
And like Enbridge, Canadian Utilities has a long-established cadence of providing annual increases to that dividend.
In fact, Canadian Utilities has the longest-running streak of upticks of any stock in Canada — over 50 consecutive years, making it a Dividend King.
Banking on growth and income
I would be remiss if I didn’t mention at least one of Canada’s big banks as one of the stocks to invest in right now. And Bank of Montreal (TSX:BMO) is a great option to consider.
BMO is the oldest of Canada’s big banks, and it has paid out dividends for nearly two centuries without fail. During that incredible amount of time, the bank has also established itself inside and outside of Canada as a solid investment option.
BMO’s expansion into the U.S. is noteworthy. Specifically, the acquisition of Bank of the West propelled BMO into position as one of the largest banks in the U.S., with a presence in 32 state markets.
Turning to income, BMO’s quarterly dividend pays out a respectable 4.65% yield. Investors with $30,000 to allocate to BMO can expect to earn just under $1,400.
Throw in expected annual bumps and reinvestments, and a BMO investment today could prove lucrative over the longer term.
There are plenty of stocks to invest in
No stock, even the most defensive, is without risk. Fortunately, the trio of stocks to invest in noted above all boast defensive moats, strong growth potential and juicy yields.
In some cases, they also trade at discounted levels over the trailing two years.
In my opinion, one or all of these stocks to invest in should be core holdings in any long-term, well-diversified portfolio.
