Investing can be confusing at times, but it doesn’t really need to be. New investors are often perplexed at the sheer number of options to invest in and question what investments to begin with.
Here are five great investments that new and experienced investors alike should consider adding to their portfolios.
Bank of Nova Scotia
No portfolio is complete without at least one financial stock, and Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) makes for a great addition to nearly any portfolio. Bank of Nova Scotia is neither the largest nor most renowned of the big banks, but Bank of Nova Scotia has several compelling reasons for you to invest in it.
The bank provides a very impressive dividend with yield of 3.87%, and it has significant growth prospects thanks to the investment made in the Latin American nations comprising the Pacific Alliance. Investment in those member states is expected to continue to grow over the next few years, as the Pacific Alliance gains more widespread support and new entrants are admitted into the trade bloc.
Utility stocks are often stereotyped as boring investments due to their business models. In short, utilities provide a service to a community or area and are reimbursed for providing that utility. The terms of the agreement are typically drawn up in contracts that can span 20 years or more in length.
During that time, the utility receives a steady paycheque, much of which is passed back to investors in the form of dividends. In the case of Fortis Inc. (TSX:FTS)(NYSE:FTS), that stable and secure revenue stream is augmented with an insatiable appetite for expansion that has seen the company rise to be one of the top 15 utilities on the continent and fuel continued dividend growth for investors for over four consecutive decades.
Fortis is a perfect example of a buy-and-forget investment that every portfolio needs.
Canadian National Railway Company
Never underestimate the power of the railroad. Most investors dismiss railroads as being a remnant of the previous century, lacking any type of growth potential. Surprisingly, rail is still a major force to be reckoned with and is often noted as being a central artery of the economy with upwards of 30% of all freight in the U.S. being transported by rail.
Canadian National Railway Company (TSX:CNR)(NYSE:CNI) is the largest railroad in Canada and has an impressive network that extends from coast to coast as well as down through the U.S. Midwest to the Gulf Coast, effectively being the only railroad on the continent that has access to three separate coastlines.
Why invest in Canadian National? The company provides strong growth prospects and a respectable dividend that continues to grow. Furthermore, Canadian National is the most efficient railroad on the continent, offering a freight load that is well diversified, allowing a slowdown in one area to be offset by growth in another.
Suncor Energy Inc.
That size an efficiency are key reasons to invest in Suncor, as that efficiency is going to come back in the form of better results and higher dividends now that oil prices are starting to appreciate.
In terms of growth and dividends, Suncor is up over 25% in the past six months and provides investors with a respectable 2.70% yield dividend.
Sierra Wireless, Inc.
Sierra Wireless, Inc. (TSX:SW)(NASDAQ:SWIR) is a pure-play IoT stock with plenty of potential. IoT devices are becoming more common in our daily lives, and industry pundits predict that the number of connected devices on the market is set to nearly double within the next few years, creating a massive opportunity for investment.
Sierra builds the wireless components necessary for those devices to connect across a nearly infinite number of use cases. If that weren’t reason enough to consider Sierra, the company is also forging agreements with automotive manufacturers to provide connectivity ability into new vehicles.
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Fool contributor Demetris Afxentiou has no position in any stocks mentioned. David Gardner owns shares of Canadian National Railway and Sierra Wireless. The Motley Fool owns shares of Canadian National Railway and Sierra Wireless. Canadian National Railway is a recommendation of Stock Advisor Canada.