With so many options on the market to choose from, finding a great investment can be challenging; finding a couple to start a portfolio off with can be downright intimidating.
For those investors looking for a diversified selection of companies, here’s a quick sample of some great investments to consider.
Canopy Growth Corp.: the emerging industry pick
Canopy Growth Corp. (TSX:CGC) has been frequently cited recently as one of the most lucrative opportunities on the market since the opportunity posed by the end of prohibition nearly a century ago.
The Smith Falls–based company was on a tear towards the end of last year on the potential of an increasingly large legalized marijuana market. The U.S. election included a legalization motion on several state ballots and, the result is, we now have over half a dozen U.S. states adopting recreational marijuana use and more states approving it for medical use.
Experts peg the market for legal marijuana at upwards of $50 billion over the next decade with that double-digit growth posing an unprecedented opportunity for Canopy.
Why Canopy? While there are other companies in the market that cater to the same segment, Canopy is really set apart from the rest of the pack for two reasons.
First, Canopy is aggressively pursuing growth to capitalize on that potential. The company announced a series of acquisitions over the past few months that have expanded the its footprint both domestically and internationally.
Second, Canopy’s growth is strategic. In addition to targeting and acquiring a domestic competitor, Canopy also acquired a German distributor which served as the company’s entry into the German market.
Fortis Inc.: the faithful income provider
When it comes to Fortis Inc. (TSX:FTS)(NYSE:FTS), the more appropriate question to ask would be, why isn’t the company in your portfolio yet? As one of the largest utilities on the continent, Fortis has been a long-standing great investment option for years.
Unlike other utility stocks, Fortis has developed a habit of seeking out and acquiring other companies that are strategically set to improve not only the fortunes of Fortis, but its reach into new markets.
The recent acquisition of ITC Holdings Corp. is a perfect example of this. Integrating ITC into the Fortis family will expose the company to more than half a dozen new state markets that it didn’t operate in previously and will provide an average 6% boost to the dividend over the course of the next few years.
Speaking of the dividend, Fortis has a 44-year trend of increasing what has become a great dividend. Investors of Fortis can count on a quarterly dividend in the amount of $0.40 per share, which amounts to an impressive yield of 3.89%.
If the 44-year trend doesn’t make you a fan of Fortis, then perhaps the growth record will. The stock has appreciated over 50% in the past decade, which can provide a very healthy investment return once dividend reinvestments are factored in.
Silver Wheaton Corp.: the long-term growth pick
Silver Wheaton Corp. (TSX:SLW)(NYSE:SLW) is a precious metals streamer with huge upside. The way a streamer operates differs from traditional precious metal miners in that it is both lower risk and potentially higher return.
Are you interested yet?
As a streamer, Silver Wheaton provides upfront financing to traditional miners, who in turn set up operations and begin mining. In exchange for that upfront infusion, Silver Wheaton is entitled to a certain amount of the precious metals from the mine, which can be purchased at a very significant discount.
Silver Wheaton typically buys gold for as little as US$400 per ounce and silver for US$3.50 per ounce. Considering that gold trades around US$1,200 per ounce on the market and silver trades at just over US$17 per ounce, that discount is huge.
Silver Wheaton can then turn around and sell those metals for the market rate.
