The sheer number of trading options available often overwhelms new investors. Selecting a few well-performing, popular stocks may be a strategy for some, but this fails to ensure an adequate amount of diversification necessary to outperform the market.
Here’s a diversified portfolio of investments for consideration that is balanced across different segments of the economy and likely to continue being a source of growth for years to come.
Rogers’s core subscription services still account for the bulk of the company’s revenue and growth prospects, and the wireless segment growth is what investors should be most excited about.
Smartphones are increasingly becoming an integral part of our lives, and that usage is expected to continue growing over the next few years. Over the course of the past fiscal year, Rogers realized the largest growth in wireless subscribers in a decade, which more than offset the cut-the-cord trend that has slowed growth in the wired and cable segments.
In terms of a dividend, Rogers offers a quarterly payout with a respectable yield of 3.32%. In terms of growth, Rogers is down almost 10% year to date, but over the long term the company is still experiencing growth.
Rogers currently trades at below $58 with a P/E of 17.45.
Canadian National is the largest and most efficient railroad in the country and is the only railroad on the continent that has access to three different coastlines. This factor alone puts Canadian National ahead of its peers, and the solid 1.95% yield should provide a sustainable and growing source of income for years to come.
One often overlooked aspect of railroads like Canadian National is just how integral they are for the overall economy with billions of dollars in freight moving to factories and ports right across the continent. In many ways, that impressive rail network is not unlike an artery for the entire north American economy and will continue growing along with the economy at a healthy pace.
Canadian National currently trades at just over $93 with a P/E of 12.85.
Stars Group is a software company that provides a suite of online casino and card games. The company is well known for its PokerStars line of games, which continue to be a primary driver of revenue.
There are two points for investors to consider when reviewing Stars Group.
The first has to do with market potential. Online gambling games are increasingly becoming more the norm, but there are still countless markets that have yet to embrace or allow Stars Group to operate. Stars Group is actively seeking the requisite regulatory approvals to operate in new markets, but progress is typically slow barring a catalyst event, leading to my second point.
This summer, the best soccer teams in the world are set to meet in Russia for the month-long World Cup. The event is held every four years in a different country and is the most widely watched sporting event on the planet, with well over one billion people set to watch the final.
Soccer fans are well known to place bets on games. To put it another way, the World Cup will be the catalyst event of the next four years for Stars Group to open in new markets, which should result in incredible revenue gains.
Stars Group currently trades at just over $34 with a P/E of 21.18.
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Fool contributor Demetris Afxentiou has no position in any stocks mentioned. David Gardner owns shares of Canadian National Railway. The Motley Fool owns shares of Canadian National Railway. Canadian National Railway is a recommendation of Stock Advisor Canada.