Selecting the right mix of investments can be a daunting task. Opting for growth or income investments while striving to come up with a diversified portfolio from a nearly infinite number of options can leave some newer investors left confused as to where to begin.
Fortunately, there are plenty of great investment options in the market that are suited to both growth-minded as well as income-seeking investors.
Here are some investments that should appeal to both.
Shaw Communications Inc. (TSX: SJR.B)(NYSE: SJR) lacks the coverage and fame of its larger peers in the telecom sector, but this disruptor should be near the top of any investors shopping list.
Shaw offers income and growth prospects to appease both types of investors. From an income standpoint, Shaw’s monthly dividend amounts to a sustainable and appetizing 4.72% yield that has steadily risen over the past few years.
As great as that dividend is, Shaw’s real potential comes in the form of long-term growth.
Unlike the other telecoms in Canada, Shaw has, until recently lacked a mobile offering to compete with its peers. Canada has some of the highest fees and data rates in the western world, and customers are growing increasingly frustrated and projecting that frustration onto the three largest telecoms.
Wind Mobile was a viable alternative to pricing practices of the other carriers, and it was wildly popular with customers who were lucky enough to be within the limited coverage area of the carrier. When Shaw acquired Wind, the company vowed to continue the popular pricing and service aspects of Wind, and it’s expanding that coverage to nationwide coverage.
While that expansion is likely to take a few years, Shaw has already acquired over 100,000 subscribers to its new mobile service, appropriately called Freedom mobile.
Turning to the financial sector, Bank of Nova Scotia (TSX: BNS)(NYSE: BNS) is a fitting example of how a brilliant and innovative idea can lead to robust growth.
Unlike many of its financial peers that were pushing into the U.S., Bank of Nova Scotia opted to expand heavily into the markets of Mexico, Columbia, Peru, and Chile. Those four nations are members of a trade bloc called the Pacific Alliance, tasked with reducing or even eliminating trade tariffs between member states and fostering better business relations across borders.
To that end, Bank of Nova Scotia, which established branches in each of the member state nations, has become a familiar face to investors within the trade bloc, resulting in booming business for the bloc and double-digit gains from the international segment of Bank of Nova Scotia during earnings season.
In addition to serving as a great growth prospect, Bank of Nova Scotia also offers investors a quarterly dividend that provides a healthy 4.03% yield.
Utilities such as Algonquin Power & Utilities Corp. (TSX: AQN)(NYSE: AQN) remain one of the most misunderstood investment opportunities on the market. Algonquin has a mix of natural gas, electric, and water segments that serve over 750,000 customers in the U.S.
Utilities are often viewed as boring investments that lack growth prospects, but this couldn’t be further from the truth.
Utilities such as Algonquin provide a necessary service in exchange for a steady and secure stream of regulated revenue. The terms of that revenue stream are contained within agreements that can span decades, adding even more stability to a would-be investor.
Algonquin has a target of 10% growth over the next few years on top of an already impressive quarterly dividend that provides an impressive 4.59% yield.
