Lately, TSX stocks have been experiencing greater volatility. This volatility is a perfect opportunity to deploy long-term capital into high-quality TSX stocks. Considering some of the market risks (COVID-19, a trade war, the economy, etc.), the TSX Index does seem a bit pricey right now. However, like Jim Cramer always says, “There’s always a bull market somewhere.”
The fact is, if you take a long-term approach to investing (five to 10 years), it doesn’t really matter if there is a bull or a bear market. You don’t need to be a genius to create strong portfolio returns. In reality, you mostly just need patience.
Perhaps today you are sitting on $3,000 that you would like to invest, but you don’t know where. Well, here are three diverse TSX stocks that could give you a mini-portfolio with some income, safety, and a nice shot of growth.
A TSX infrastructure stock
The first TSX stock is a dividend-growth play. It is Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP). This company has a diverse portfolio of pipelines, transmission lines, data/wireless infrastructure, and transportation assets. I like it for a few reasons.
Firstly, its high-yielding assets should gain value in a low interest rate environment. Institutional investors can’t get yield in bonds, so alternative high-yielding infrastructure assets are the next best choice.
Secondly, infrastructure assets are essential assets. Generally, their income is very safe. 95% of BIP’s assets are contracted or regulated. Even in the pandemic, BIP’s management foresee very little (less than 2%) cash flow disruption.
Thirdly, BIP is very well managed and capitalized. An economic recession could create some very favourable acquisition opportunities. Yet, even without any acquisitions, it believes it can achieve organic cash flow growth of 6-9% a year. Currently, this TSX stock pays a great 4.8% dividend and you can expect it to grow by the same rate as organic growth.
A TSX telecom stock
Another very stable dividend stock is Telus (TSX:T)(NYSE:TU). It is a great TSX stock where you can collect a nice 5.2% dividend, stay protected through the pandemic, and see some upside over the next 10 years.
While Telus is slowly growing its wireline and wireless operations, it has two newer divisions that are interesting. Telus Health is growing to become the largest provider of digital health solutions in Canada. Telus International is becoming a leading global digital solutions provider. There have been some discussions that this could be a spin-off, so that could be an attractive catalyst.
Importantly, Telus will begin to benefit from the roll-out of 5G across Canada. It already has strong data/broadband infrastructure, so it should be able to cost effectively deploy 5G and still remain an industry-leading competitor.
A top tech growth stock
Lightspeed (TSX:LSPD) is the TSX stock I’d buy for its growth. Due to its smaller size and high valuation, it is certainly a riskier TSX stock. However, Lightspeed is doing all the right things to become a major disruptor in the point-of-sales (POS) industry.
Lightspeed provides retail and hospitality customers with a cloud-based, omni-channel sales platform. It helps its customers integrate all aspects of online and in-store operations.
During the pandemic, Lightspeed has seen growth accelerate, as retailers desperately looked for a sales platform that broadens their online and e-commerce sales avenues. It saw a 400% uptick in customers utilizing its e-commerce platform, in only a few months!
It continues to invest in its platform as well as in acquisitions that broaden its market reach. This TSX stock has a long growth runway. Even at this price, Lightspeed is trading at an attractive long-term entry point.