Both new and experienced investors alike can benefit from realigning their portfolio to better suit their long-term needs and goals. Fortunately, doing so is not as complicated as most would expect, because the market provides us with plenty of potential candidates that can provide decades of growth and income-producing opportunities.
Here are a few investments that all types of investors should be considered as core holdings.
Rogers Communications (TSX:RCI.B)(NYSE:RCI) is one of the largest telecoms in the country, with an impressive wireless network that is arguably the envy of its peers. The company’s sprawling media empire and interest in professional sports teams also provide multiple revenue sources, which make Rogers the complete package for investors.
In recent years Rogers has aggressively engaged in growing its subscriber base and improving its customer churn, which has resulted in a series of incredible growth numbers. Specifically, the company’s wireless segment saw revenue gains of 8% over the prior period and realized 112,000 net additional subscribers in the quarter, while reducing customer churn to just 1.23%. In short, they were the best quarterly numbers the company posted in nearly a decade, leading Rogers to provide its first dividend hike in several years.
Rogers currently provides investors with a stable 2.86% yield with plenty of potential for long-term growth.
Turning to the financial sector, Toronto-Dominion Bank (TSX:TD)(NYSE:TD) remains near the top of any investor shopping list, and for good reason. The bank continues to provide record-breaking results with nearly every passing quarter, and TD’s quarterly dividend that currently offers a handsome yield of 3.64% is hard to pass on.
One of the most important points regarding TD that investors should consider is the way the bank has become one of the largest banks in the U.S. over the past decade, fueled by a series of well-timed acquisitions following the Great Recession. The end result was a rebranding of those acquisitions under a single TD Bank banner that now stretches from Maine to Florida along the U.S. east coast. Coincidentally, that sprawling network of branches in the U.S. now outnumbers its branch network in size here in Canada.
Furthermore, the higher deposits and interest rates that TD garners from its growing presence in the U.S. have not only helped push revenues higher, but has also provided TD with a more diversified portfolio to offset any slowdown in the domestic market.
TD currently trades at below $75 with a P/E of 12.37.
Last February saw Canadian National Railway (TSX:CNR)(NYSE:CNI) deliver just a fraction of its deliveries on time, which resulted in a drop in quarterly earnings. That drop was largely attributed to the harsh and long winter we experienced last year, and Canadian National not only bounced back from those delays, but invested significantly in new locomotives, staff and infrastructure upgrades in parts of its network that were more prone to delays.
Coincidentally, we start February this year under another harsh bout of weather, with the polar vortex gripping most of the country, but no such delays are expected this year. In fact, higher volumes of both grain and crude are likely to provide a boost to quarterly profit earnings in the next quarter. Furthermore, Canadian National is still in discussions with Alberta on shipping more crude by rail out of the region later this year and into next year.
In terms of a dividend, Canadian National’s quarterly yield comes in at just 1.96%, but when factoring in growth and recent stock buybacks, the long-term potential for investors is huge.
Finally, speaking of energy infrastructure, let’s take a moment to mention Enbridge (TSX:ENB)(NYSE:ENB), one of the largest pipeline operators on the continent. Enbridge’s massive pipeline network traverses North America, transporting and storing crude while demanding a fee for that transport service, not unlike a toll road. The simplicity and brilliance of this model make Enbridge a viable long-term pick for any portfolio, but Enbridge’s steadily improving finances and very attractive 6.14% yield make the company a screaming buy.
Year-to-date Enbridge is already up 14%, and has erased much of the losses sustained following its Spectra acquisition. In other words, the opportunity to buy Enbridge at its currently discounted rate may be waning.
The financial world is buzzing as Iain Butler and his team of market-beating analysts in Stock Advisor Canada pick their favorite stocks for 2019 and beyond.
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Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned. Rogers, CN and Enbridge are recommendations of Stock Advisor Canada.