You don’t need a small fortune to get started on your long-term investment journey. Getting started with $1,000 may even be a better idea so that you can learn more about the financial markets and just a bit more about your personal tolerance for risk.
Indeed, it’s far better to start small and build up a portfolio than to put a considerable sum down all in one go, only to discover that you’re perhaps not as immune to those choppy market moves as you may have thought going in. Undoubtedly, balancing risk with reward can be rather tricky, especially if you’re a new investor who’s just looking to dip a toe in at these levels.
The important thing is you’re getting started, and with that, let’s look at two intriguing candidates you may wish to consider with your first $1,000 or so.
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Fortis
Fortis (TSX:FTS) is a regulated utility firm with a nice 4.1% dividend yield at the time of writing. The firm, which is a go-to dividend grower for many conservative investors, has also been quite the momentum play of late. Over the past three months, shares have rocketed more than 13%. And the hot rally may not be over yet, as the company looks to keep its dividend growth streak alive through various smart projects.
In a prior piece, I praised management for moving forward with its five-year capital plan, which will see it spend around $26 billion. Though there are far more exciting growth stocks out there, I do find FTS shares to be the perfect balance of value, dividends, dividend growth, and now, momentum. Going into year’s end, look for shares of FTS to test the all-time highs not seen since early 2022. The stage may very well be set as the utility firm looks to make the most of the lower interest rates to come.
Also, let’s not forget that regulated utilities tend to be less rattled by times of economic stagnation or even recession. Though Fortis stock is no bond, I do view it as one of the more bond-like equities on the TSX Index these days. So, if you’re looking to batten down the hatches, look no further than the name this October!
Alimentation Couche-Tard
If you want a bit more explosive growth, Alimentation Couche-Tard (TSX:ATD) seems like a wise buy after its latest 15% correction on the back of its pursuit of 7-Eleven. Undoubtedly, investors have the right to be a bit worried about the potential dilution that could accompany such a massive deal. That said, shareholders have every reason to put their faith in management. After all, they have proven that they’re all about value creation and synergies via big M&A moves.
A 7-Eleven deal would likely be rich with such opportunities. Despite having Couche-Tard increase the takeover offer by a generous amount, 7-Eleven still does not seem all too enthused. They’ve restructured the company with the hopes of unlocking additional long-term value for shareholders. Indeed, the pressure seems to be on now that Couche-Tard has taken a liking to the firm.
Either way, I’m not so sure a deal will end up panning out, given Japan hasn’t really been a destination to go searching for foreign takeovers. In any case, ATD stock is a bargain at $73 per share.
