Claim Membership Credit
Now that the last few months of 2024 are within sight, many investors are looking towards their 2025 portfolios. That’s a shame because I’m looking to buy two stocks in the next few weeks, and you should, too.
Let’s start with a great overall pick
While I am looking to buy two stocks within the next few weeks, one that I really like is Canadian Imperial Bank of Commerce (TSX:CM). There are a few reasons why CIBC fits into nearly every investor portfolio.
First, the big bank stocks are stellar long-term investment options. They generate reliable (and largely secure) revenue streams from a mature domestic segment and a growing presence in the U.S.
Prospective investors should note that CIBC’s performance in the most recent quarter from its U.S. segment was, in a word, stellar. Specifically, the bank posted a net income of $215 million for the quarter, representing an insane 187% improvement over the same period last year.
Second, the big banks pay out very generous dividends, which (thanks to the impressive growth noted above) continue to see annual upticks. In the case of CIBC, the bank pays out a generous 4.13% yield, which makes it one of the better-paying options on the market.
CIBC has also provided investors with annual or better upticks to that dividend going back years.
The big banks represent a defensive option to counter volatility. Canada’s big banks are more conservative and far more regulated than their U.S.-based peers. This makes them less prone to financial crises and yet still highly profitable.
Finally, CIBC represents a unique investment opportunity for long-term investors. As of the time of writing, the bank trades at an attractive price-to-earnings (P/E) of just 12.72.
The bank also trades at a lower level than several of its peers and comes without the baggage or risk that some of its larger (yet similarly priced) peers come with.
In other words, CIBC is a great option if you want to buy two stocks this month.
Put your portfolio on autopilot
I’m a big fan of income-producing stocks, and that preference influenced the second of my two stock picks. Specifically, I’m looking at Canadian Utilities (TSX:CU).
For those unfamiliar with the stock, Canadian Utilities generates a recurring and stable revenue stream thanks to the reliable utility business model. In short, utilities are bound by contract to provide a service, and they are compensated for that service.
Those contracts are regulated and span decades. This makes utilities like Canadian Utilities some of the most stable and defensive holdings on the market.
Even better, that reliable revenue stream allows the company to invest in growth and pay out a very handsome dividend.
In the case of Canadian Utilities, that dividend works out to a very tasty 5.08%, making it one of the better-paying options on the market.
Even better, prospective investors should note that Canadian Utilities is one of just two Dividend Kings on the market today. This means that this utility stock has provided investors with annual increases to that dividend for over 50 years.
In fact, as of writing, Canadian Utilities has a dividend-increase streak of 52 years. This means that if you held Canadian Utilities back in the early 70s, you’ve seen an annual uptick in that dividend every single year since then.
And Canadian Utilities has no plans to stop that tradition. That fact alone puts Canadian Utilities on any buy two stocks now list.
Will you buy two stocks this month?
Both Canadian Utilities and CIBC offer investors growth potential, juicy dividends and some defensive appeal. This makes them appealing options to consider for any well-diversified portfolio.
Buy them, hold them, and watch them grow.
