New Investors: 3 Stocks to Buy and Hold for Decades

Telus Corporation (TSX:T)(NYSE:TU) and these two other stocks can provide your portfolio with a great balance of growth and dividends.

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If you’re starting out your portfolio, you might be feeling overwhelmed with possible options to choose from. The key is having a little bit of everything: growth, dividends, and some diversification as well. Below are three stocks that could be a great starting point for your portfolio.

Telus Corporation (TSX: T)(NYSE: TU) is always an easy stock to pick because of its relatively low risk and its growing dividend. The company did in fact recently raise its payouts by 3.2%. While it might not seem like a significant amount, it’ll at least cover inflation and the company has in the past increased its dividends multiples time in a year.

What I also love about Telus’ stock is that it’s very stable and won’t go on big swings in any direction. Year to date it has risen by around 10%, and even that is a bit abnormal given that the stock normally finds itself in a narrow trading range. While Telus won’t offer you much in the way of long-term growth, it will give you a stock that you can put in your portfolio and just forget about.

It’s in a stable industry with few competitors, which is not likely to change anytime soon. It gives Telus and its investors a lot of predictability when it comes to sales and profits, making it a great dividend stock to own.

Waste Connections Inc (TSX: WCN)(NYSE:WC) may not seem like it, but it’s a great growth stock. While it does offer investors a nominal dividend, the real value here is in what the company can achieve over the long term. Fueled by acquisitions, Waste Connections has seen a lot of sales growth over the years, with its top line rising by more than 130% since 2015.

The company has achieved good profits and lots of free cash flow over the years, making room for a lot of potential acquisitions to help the stock grow. Waste Connections continues to do well, as in its most recent quarter, sales were up 9% year over year.

It has been a popular stock with investors, as its share price has risen by 26% through the first five months of 2019. The stock may be trading at a little bit of a premium today and near its 52-week high, but over the long term, I’d expect the share price to continue to increase.

Suncor Energy Inc (TSX: SU)(NYSE: SU) has proven to be a versatile stock that can handle tough situations. Despite a downturn in oil and gas, the company has been able to continue producing strong results. Suncor’s coming off a strong quarter where it saw its profits rise by 86%.

The energy giant is a good stock to buy today, as it’s trading at some very reasonable multiples: 1.5 times sales and 17 times earnings. That’s a very decent price for one of the top stocks on the TSX and one of the safest buys you can make that have oil and gas exposure.

The good news is that with the oil and gas industry still struggling, Suncor is still performing at a high level. If things ever get back to where they were, the stock could take off in a hurry. With Suncor, not only do you get a lot of potential growth, but the stock also pays a very attractive dividend of around 4%.

Fool contributor David Jagielski has no position in any of the stocks mentioned.

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