The Motley Fool

2 TSX Stocks to Load Up on in 2020

With the holiday season in full swing, the end of December 2019 also marks the end of the decade. It’s been a volatile year for investors, and the strange 12 months have taught us the importance of diversifying our investment portfolio.

The year 2019 saw plenty of surprises. Cannabis stocks rose to remarkable heights and dropped with equally extreme intensity. The Toronto Stock Exchange Index hit all-time highs this year as well. Plus, there’s been much talk of a recession hitting the economy soon.

With the beginning of a new decade, it is a good idea to take a look at your portfolio and decide the stocks to load up on this year.

Today I’m going to discuss two suitable investment options that can suit your needs, no matter what type of investment goals you have.

Telus Corporation

Telus Corporation (TSX:T)(NYSE:TU) is one of the most exciting picks that any Canadian investor can consider. It is the third-largest company in Canada’s telecommunications sector, with a market capitalization of $30.35 billion. Telus is a little different from the rest of the options in the telecom industry.

The company offers its customers the typical subscription services that they can expect from a telecommunications company, but it differs from its competitors in several respects.

For example, the company is building a presence in Canada’s healthcare industry.

Telus is actively working with other companies to provide virtual technology solutions for the Canadian healthcare sector. It’s a nascent opportunity in the industry, but it has the potential to provide significant growth to Telus’ income stream in the long term.

Over the past decade, Telus has increased its dividend payments to shareholders. The company’s quarterly dividends at a 4.62% yield make for a substantial income for investors. In the same period, Telus shares have grown by more than 180%.

Manulife Financial

Plenty of Canadians are clients of the insurance provider, Manulife Financial (TSX:MFC)(NYSE:MFC). Statistically speaking, one of every three Canadians is a client of the financial services provider.

Manulife has incredible domination in the market as an insurance provider. While the risk of saturating the market and decreasing the growth rate might worry some investors, Manulife’s expansion into the Asian segment has opened plenty of opportunities for growth.Manulife’s aggressively expanding Asian segment operations are paying off well.

The segment continues to exhibit double-digit growth during the earning seasons. Over 80% of Manulife’s new business growth across the company was due to its Asian market operations.

The most recent quarter saw $430 million in new businesses add to the company due to the new market. In contrast, the new business from the U.S. and Canada combined accounts for just $96 million in the same period.

With capital gains of over 100% in 10 years, Manulife stocks are trading for $26.32 per share at the time of writing. The company pays a juicy dividend at 3.80% yield to shareholders every quarter with a history of generous annual increases that go back years.

Foolish takeaway

If you’re looking to bolster your investment portfolio moving into the new decade, stocks like Manulife and Telus could be prime candidates to consider.

Between the two of them, you can gain a substantial dividend income and enjoy decent growth through capital gains in the long run.

This tiny TSX stock could be the next Shopify

One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting...

Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago - before it skyrocketed by 1,211%!

Iain and his team just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!

Click here to discover how!

Fool contributor Adam Othman has no position in any of the stocks mentioned.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.