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When it comes to investing, there are a number of great investments available year-round that can offer a handsome income stream as well as significant growth prospects.
Here are some of the best investments to consider this holiday season.
The utility with massive growth potential
Fortis Inc. (TSX:FTS)(NYSE:FTS) is one of the largest utilities in North America, and while Fortis may be responsible for keeping your holiday lights on, the real gift that this company provides investors comes in the form of growth and income potential.
Unlike the stereotypical utility investment that lacks growth, Fortis has grown over the years thanks to several expertly executed acquisitions that have allowed Fortis to grow in size and coverage. A prime example of this is the ITC Holdings deal from over a year ago that exposed Fortis to several new U.S. state markets.
Over the past year, Fortis’s stock has soared over 18%.
If income is more your treat, Fortis can provide that too. Fortis is one of a few companies on the market that has a record of providing shareholders with handsome dividend increases that spans over four decades. The current quarterly payout provides investors with a respectable 3.54% yield.
The telecom with a side empire
Chances are that you’ve used the network, listened to, or watched one of the many assets of BCE Inc. (TSX:BCE)(NYSE:BCE) as part of your daily routine. While the company is primarily known for its core subscription services that provide internet, TV, wired, and wireless services, BCE also has a massive empire of holdings that includes TV and radio stations as well as professional sports teams.
While impressive, the diversification of BCE’s revenue is not the main reason investors should consider BCE. The most compelling reason has to do with BCE’s ever-expanding moat.
BCE offers its core subscription services from coast to coast and uses impressive network infrastructure that has been built up over the years. That infrastructure places the company ahead of the competition in terms of coverage and provides a defensive moat against would-be competitors from emerging to take a share of BCE’s subscribers.
That moat also permits BCE to provide a great dividend to shareholders, which currently pays an impressive yield of 4.65%.
The bank with a century-old tradition
Bank of Montreal (TSX:BMO)(NYSE:BMO) is not only one of Canada’s big banks, but Bank of Montreal also happens to be one of the few companies on the market today that has been rewarding investors with a dividend for well over a century.
In fact, Bank of Montreal’s dividend pre-dates Confederation itself, making it the first company to pay out a dividend in Canada — a tradition that extends to this day. The current dividend pays out a quarterly $0.90 per share, translating into a healthy 3.62% yield.
Apart from the dividend, Bank of Montreal offers investors a diversified portfolio that has a significant and growing presence in the U.S. market.
This small-cap stock is “Hidden in Plain Sight!” It’s flying under the radar and is being touted as a “royalty collector” by several of our top Canadian analysts.
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Fool contributor Demetris Afxentiou has no position in any stocks mentioned.