Those new to investing and the stock market jump in with varying degrees of knowledge and expectations. Apart from the study of technical data and fundamentals, new investors have to commit themselves to patience, which is one of the toughest lessons to learn. When making your first purchases, it helps to own stocks that hold big growth potential and provide income to smooth over down or volatile periods.
Let’s take a look at three stocks that new investors can add to their portfolios and feel good about in the long term.
Fortis Inc.
Fortis Inc. (TSX:FTS)(NYSE:FTS) is a Canadian diversified electric utility company that operates in North America, Central America, and the Caribbean. The company released its second-quarter results on July 28. It posted net earnings of $257 million, or $0.62 per common share, in comparison to $107 million, or $0.38 per common share, in Q2 2016. Cash flow saw 28% growth to $1.2 billion for the first half of 2017. The company pointed to its ability to come through on the benefit of the acquisition of ITC and realizing a positive outcome in the wake of its UNS Energy acquisition.
The stock boasts a dividend yield of 3.53% at $0.40 per share as of the last offering. The company has a nice wide moat, the share price has increased 9% in 2017, and it provides a tasty dividend.
Brookfield Renewable Partners LP
Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP) is a Toronto-based limited partnership that owns and operates renewable power assets. Renewable energy is growing fast in Canada and across the developed world and holds massive growth potential for the long term. The company announced its second-quarter results on August 4. It posted net income of $85 million compared to a net loss of $19 million in the second quarter of 2016. The company reiterated its belief that it will be able to continue to deliver 5-9% distribution growth.
The stock has increased 9% in 2017 and 40% in a five-year period. It offers an attractive 5.42% dividend yield of $0.59 per share. A business model promising explosive long-term growth combined with a stock with a terrific dividend offering makes this a long-term buy.
National Bank of Canada
National Bank of Canada (TSX:NA) is the smallest of the “Big Six” Canadian banks and is often forgotten by investors. The Montreal-based bank has made major investments in its retail sector and is committed to establishing itself as a top investment bank in Canada. Its second-quarter earnings beat expectations and saw profits more than double compared to the same period last year. The bank is set to release its third-quarter earnings during a conference call on August 30.
The stock has increased 2% in 2017 and 20% year over year. It offers a dividend yield of 4.1% at $0.58 per share. Investors looking for an unsung stock that boasts the stability, growth potential, and high dividends of the other Canadian banks should add National Bank to their portfolios.
