There’s no shortage of great stocks on the market right now. Many of those stocks can provide significant long-term growth appeal as well as very lucrative (and secure) dividends. But what are the best stocks to buy now for investors with $10,000 to drop?
Let’s try to answer that question by looking at some of the best stocks to buy right now.
This stock offers a crazy yield and a defensive backbone
Most investors are familiar with Enbridge (TSX:ENB). But that being said, few investors may realize the full scope of what Enbridge does and why the energy infrastructure behemoth is hands down one of the best stocks to buy now.
Enbridge is best known for its crude and natural gas pipeline network and there’s a good reason for that. Enbridge hauls nearly one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S.
This fact alone makes Enbridge one of the most defensive investments on the market, but there’s still much more to love.
Enbridge also operates the largest natural gas utility on the continent in addition to operating a growing renewable energy business. Both segments provide additional (and predictable) revenue streams, allowing Enbridge to invest in growth initiatives and pay a very handsome dividend.
That dividend is one of the main reasons why investors will see Enbridge as one of the best stocks to buy right now. As of the time of writing, Enbridge pays out an insane 7.58%, making it one of the best-paying dividends on the market.
Prospective investors should note that Enbridge has provided annual bumps to that dividend for three decades without fail. For investors with $10,000 to drop into Enbridge, that works out to an income of just over $750.
Put your money in a bank (stock)
You can’t compile a list of the best stocks to buy without mentioning one of Canada’s big banks. And that big bank stock to look at right now is Bank of Montreal (TSX:BMO).
BMO is the oldest of Canada’s big banks and, as a result, has been paying out dividends without fail for nearly two centuries. That’s an insane amount of time, and it also means that BMO has weathered plenty of volatility and pullbacks over that period.
In other words, BMO is a superb long-term pick for investors.
As of the time of writing, BMO’s quarterly dividend pays a handsome 5.44%. And like Enbridge, the bank has an established cadence for providing generous annual increases to that dividend.
Another key reason why BMO is one of the best stocks to buy right now is its growth potential.
Last year, BMO completed the acquisition of California-based Bank of the West. This deal vastly increased BMO’s presence in the U.S. market to 32 states. The deal bumped BMO’s standing in the U.S. as one of the largest banks with billions of deposits and millions of new customers.
Most importantly, it has queued BMO up for significant long-term growth, which has been largely muted thanks to the inflation-fueled market volatility we’ve seen.
That’s also led to BMO’s stock price remaining relatively flat over the past year, despite its significant long-term appeal. As of the time of writing, BMO trades down just over 2% over the trailing year.
That fact, combined with the juicy dividend and long-term growth appeal, makes BMO one of the best stocks to buy right now.
The best stocks to buy right now
All stocks, even the most defensive options like BMO and Enbridge, are not without risk. That’s why the importance of diversifying your portfolio cannot be understated.
Fortunately, both Enbridge and BMO have sizable defensive moats and established operations that minimize that risk.
In my opinion, one or both are some of the best stocks to buy right now and should be core holdings in any well-diversified portfolio.
