Claim Membership Credit
Investors new to investing often struggle with finding the right stocks to build out their portfolios. Fortunately, the market gives us plenty of options to help make that decision a little easier. And within those many options are a handful of TSX stocks that are worthy of consideration right now.
Here’s a look at four great TSX stocks you will regret not buying right away.
A great stock with 50 years of growth
Fortis (TSX:FTS) is one of the TSX stocks that should be on every investor’s radar. Fortis is one of the largest utility stocks in North America and boasts a generous dividend, reliable revenue, and plenty of growth potential.
The main driver behind that is Fortis’s lucrative business model. In short, utilities like Fortis provide a service for which they are compensated. That compensation is stipulated in long-term contracts that span decades.
In other words, as long as Fortis continues to provide utility services, it will generate a reliable, stable, and recurring revenue stream.
And it’s that revenue stream that allows Fortis to pay out a generous quarterly dividend with a 3.97% yield. It also means that Fortis can continue to provide investors with a generous uptick to that dividend, which it has done so for an incredible 50 consecutive years without fail.
That fact alone makes Fortis one of the TSX stocks to buy right now and hold forever.
This stock pays out a dividend of nearly 7%
Another great option for investors to consider right now is Enbridge (TSX:ENB). Like Fortis, Enbridge is one of the TSX stocks that continues to deliver a juicy dividend and annual increases.
In the case of Enbridge, the company pays out a juicy 6.87% yield and has provided annual increases to that dividend for three decades.
Part of the reason for that strong growth and consistency stems from its increasingly diversified business. Enbridge is best known for its pipeline network, but the company also operates a natural gas utility and a growing renewable energy portfolio.
These segments all provide a defensive moat around the company, making it a must-have for any investor looking for some stellar TSX stocks.
Banking on two centuries of dividends and solid growth
You can’t compile a list of the best TSX stocks and not mention at least one of Canada’s big banks. Today, the bank to note is Bank of Montreal (TSX:BMO).
BMO is the oldest of the big banks and has been paying out dividends for nearly two centuries without fail. That’s an incredible amount of time, and like the other companies on this list, it provides investors with annual increases to that payout.
As of the time of writing, BMO’s quarterly dividend works out to 5.25%.
Part of the reason for that impressive yield and stability comes from the reliable business model that BMO adheres to. Within Canada, BMO operates a reliable banking segment that generates a stable revenue stream.
Outside of Canada, BMO’s operations in the U.S. market provide an alternative revenue stream that is both defensive and growing. That growth comes mainly from BMO’s acquisition of Bank of the West, which was completed last year.
It also handily makes BMO one of the TSX stocks that new and seasoned investors should consider right now.
Your wireless connection pays dividends, too
Another segment of the market that investors seeking TSX stocks to buy should consider is Canada’s telecoms.
Like utilities, telecoms provide an increasingly necessary service. The need for a fast and reliable internet connection has grown exponentially since the pandemic. Throw in the insatiable demand for wireless data connections, and you have a very defensive and growing opportunity.
The telecom best served to meet that demand is Telus (TSX:T).
Telus offers investors a tasty 7.19% dividend, making it one of the best-paying TSX stocks on the market. It also boasts over a decade of annual bumps to that dividend.
TSX stocks to buy today
No stock, even the most defensive, is without risk. That’s why a well-diversified portfolio that can provide growth and income is needed.
In my opinion, the above stocks do well to meet that need. Buy them, hold them, and watch them grow.
