For new investors, it’s often difficult to determine which stocks to invest in. There are many different options and also many opinions on what the best strategy is. Where you end up depends a lot on whether you’re prioritizing value, growth, or dividends. However, in the list below, you don’t have to compromise, because these three stocks here will help ensure your portfolio is well rounded and has a bit of each without exposing you to significant risk in the process.
BCE Inc. (TSX: BCE)(NYSE: BCE) is one of the safest stocks on the TSX. That’s what I found when I analyzed the biggest stocks on the exchange and measured their performances a year ago. BCE came out on top in terms of stability, meaning that you won’t get the wild swings in price that you will with other stocks. The stock has struggled so far this year, dropping ~10% in value; however, over the past 10 years returns have been nice and steady, growing more than 60% during that time.
With BCE, there’s not a whole lot of growth left in what’s become a very saturated market where all companies can really do is raise prices and steal customers away from competitors. However, BCE has a strong position in the telecom industry, and as long as it keeps doing it what it has been, it’ll be fine. What makes the stock appealing is that it’s a good value, trading at 17 times its earnings, and that it also has a great dividend.
BCE’s dividend yield of 5.5% is very high thanks in large part to the drop in share price, and it’s a great time to lock in the yield now before the share price goes back up. The company has also grown its payouts by 30% in the past five years.
Suncor Energy Inc. (TSX: SU)(NYSE: SU) might be perceived to be a bit of a risky stock to invest in because it will be impacted by the price of oil, but overall the company has still been able to do well, even during the downturn. While the company offers a much more modest dividend in comparison to BCE at just 2.7%, it does have a lot more opportunity for growth.
Earlier this year, Suncor announced it would be deploying autonomous trucks at its operations in an effort to drive up efficiency and bring costs down. The company had over $4.4 billion in profit last year, which is a five-year high. As oil prices continue to rise, Suncor could see a lot of growth and activity in the quarters and years to come.
Toronto-Dominion Bank (TSX: TD)(NYSE: TD) is arguably the best bank on the TSX, and with lots of diversification and a strong brand overall, it’s not hard to see why. At only 14 times earnings and a little more than two times book value, its share price trades at attractive multiples, and investors won’t be taking on much risk in owning the stock.
With a dividend of over 3.5% and solid growth that will continue as the economy continues to expand, TD is a stock that makes sense for all kinds of investors.
