Finding a good mix of investments can be a daunting task. Balancing both growth and income-producing stocks as well as tracking the performance of your portfolio and making adjustments as necessary can also get exhausting. Fortunately, the market provides us with plenty of investment opportunities to maximize both, and here are some to consider.
Buy them, then forget about them for a decade or more.
Toronto-Dominion Bank (TSX:TD)(NYSE:TD) may not be the largest bank in the country at the moment, but based on the incredible growth over the past decade, that day may not be too far out. That growth was thanks to a number of masterstroke acquisitions over the past decade that have resulted in TD having a branch network in the U.S. that is larger than its counterpart in Canada. That growth also provided an interest hedge for investors looking to diversify their investments.
As a dividend investment, TD’s current quarterly yield of 3.37% may pale in comparison to some of its competitors, but income-seeking investors will take solace in the fact that TD’s dividend has risen steadily in the form of consistent annual increases spanning back over a decade, and TD has been offering a competitive dividend to shareholders for well over 160 years. That factor alone makes the bank a prime candidate for a buy-and-forget portfolio.
In terms of results, TD reported adjusted net income of $3,127 million, surpassing the $2,865 million reported in the same quarter last year. On a per-share basis, that amounted to $1.66 per diluted share, bettering the $1.51 per diluted share reported in the same period last year. On a per-segment basis, both the Canadian retail and U.S. retail groups saw strong growth in net income over last year, posting results that improved 7% and 27% respectively.
At the time of writing, TD is trading just below $79 with a P/E of 13.46.
Investors looking for a defensive stock with income and growth potential should seriously consider Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN). Oakville-based Algonquin offers a diversified mix of utilities through its two subsidiaries, Liberty Power and Liberty Utilities.
Liberty Utilities provides electric, gas, and water service, whereas Liberty Power has a portfolio of over 30 renewable energy facilities that include hydro, solar, thermal, gas, and wind elements. Together, both subsidiaries provide service to over 750,000 subscribers in a dozen U.S. states. In addition to its subsidiaries in the U.S., last year Algonquin forged a relationship with Abengoa SA of Spain to add global renewable energy assets to its portfolio.
During the most recent quarter, Algonquin reported a 9% surge in revenues over the same quarter last year and earned US$50.9 million, or US$0.11 on an adjusted basis, reflecting an incredible 29%, or a 22% per-share improvement, over the same quarter last year. Algonquin offers a quarterly dividend with a yield of 4.81%.
Despite the positive results, Algonquin is trading down nearly 3% this year, which makes the company an intriguing buy for value-minded investors.
For many investors, Alimentation Couche-Tard (TSX:ATB.D) is synonymous with growth. Couche-Tard is one of the largest convenience store and gas station operators in the world, with an insatiable appetite for growth that has seen the company acquire several smaller competitors over the years, culminating in the mega deal for CST Brands which closed last year.
In the most recent quarter, Couche-Tard reported a massive gain in revenue, with the US$14.8 billion reported handily surpassing the US$9.8 billion reported in the same period last year. Strong fuel sales numbers as well as growing merchandise sales, were primarily attributed to the better-than-expected results.
For long-term investors of Couche-Tard, those impressive results are nothing new, nor do they appear to be ending anytime soon.
Acquisitions and strong sales numbers have fueled incredible growth for the company, but there are additional factors to consider. Couche-Tard is in the midst of consolidating its myriad of global brands, and the company still hasn’t realized the full synergies from the CST deal that the company has estimated to be in the area of US$215 million. Additionally, the company hasn’t been coy about pursuing further acquisitions, specifically noting the opportunity presented in Asian markets.
Couche-Tard currently trades at just over $65 with a P/E of 21.08.
