For investors who are looking for both income and stability, you’ve come to the right place. The TSX happens to be full of great investment opportunities right now. However, some stocks are better than others.
These two top picks are ones I’d recommend all investors take a look at right now.
So, let’s get to it.
Telus Communications
I’ve continued to be bullish on Telus Communications (TSX:T)(NYSE:TU) for quite some time. Indeed, there are a number of reasons for this.
From a 5G perspective, Telus is one of the best ways investors can get exposure to this secular growth catalyst. This large telecom player is continuing to roll out infrastructure spending, which will benefit investors over the long term. Those bullish on 5G need to give this stock a look.
From an income perspective, Telus is hard to beat. The company’s 4.6% dividend yield is about as good as it gets for long-term investors. Growing cash flows from the company’s 5G rollout should provide ample room for dividend increases on the horizon. Additionally, Telus’s existing balance sheet is among the strongest of its peers.
Finally, Telus’s defensive attributes ought to be considered. This company’s cash flows are regulated and are about as safe as they get. For long-term investors, this is a very good thing.
Those with a sufficiently long investing time horizon simply can’t go wrong owning Telus stock here.
Northland Power
Renewable power is the future. And in this space, Northland Power (TSX:NPI) is one of the pre-eminent plays in Canada.
Yes, conventional oil & gas is hugely important to the Canadian economy. However, times are shifting. And investors looking to get on the right side of the energy trade have shifted their focus to Northland as one of the best ways to gain exposure to this growing segment of the energy sector.
This company’s value lies not only in its asset quality but also in its diversification. Northland Power is a global player in the renewable energy space. The company’s recent acquisition of US$990 million worth of projects in Spain speaks to this.
For those bullish on the energy transformation that’s underway, Northland power is one of the best options on the TSX. I anticipate this company will provide investors with a market-beating compound annual growth rate (CAGR) over the next decade.
Bottom line
Both Telus and Northland are two great-quality long-term holdings for investors. These companies provide a nice mix of growth, income, and value. Those seeking portfolio diversification may be well-served by considering these names at these levels.
