If too many numbers make you apprehensive, here is a simple strategy that you can count on your five fingers. All fingers are of different sizes and each has its use. Similarly, here are five stocks, and each has its purpose. If you bind them together in a $500 portfolio for five years, they can give you handsome returns.
BCE
BCE (TSX: BCE)(NYSE: BCE) is the thumb that is flexible, holds objects, and connects to other fingers. The company helps you communicate and connect devices to the internet with its wireless and wireline solutions. It stands out among other telecom operators because of its largest telecom infrastructure and 5G investment.
For around $61 a share, you can lock in a 5.77% dividend yield for another 10 years. Moreover, this dividend will grow. BCE sure wants to maintain its 10-year record of 6.4% dividend compound annual growth rate (CAGR).
If you see the 5G potential, you will know that the new revolution will lead to device proliferation and make artificial intelligence at the edge a reality. This means you can have a personal wallet, a self-driving car, and drone deliveries.
All this means more subscriptions for telecom operators and higher dividends for BCE shareholders, so it’s a thumbs up for BCE.
Lightspeed POS stock
Lightspeed POS (TSX: LSPD)(NYSE: LSPD) is the index finger that is pointing to the future of retail and restaurants. The company went through a sea change of innovations during the pandemic, learning the technology gaps in the omnichannel future. An omnichannel world needs a seamless integration of inventory, billing, order booking, and user experience, both online and at physical stores.
Lightspeed worked around its platform and is today the preferred partner for most small retailers and restaurants. However, the company is still growing and will benefit from the reopening of restaurants. Running in the forward direction, the stock has surged 21.5% year to date to $103.6 and is heading towards making a new high of $110.
TC Energy stock
TC Energy (TSX: TRP)(NYSE: TRP) is the oldest of the lot. Hence, it is the longest finger. It doesn’t offer much growth but is a Dividend Aristocrat. Offering a 5.5% dividend yield, it has a long history of paying growing dividends for 49 years.
The pipeline company is going through a temporary setback as it called quits to its Keystone XL project after U.S. President Joe Biden cancelled the permit. This 12-year long project came to an unexpected end, but it has freed resources blocked in this project.
The project termination may not impact its dividends but could probably slow the dividend growth until the next project comes online.
Nuvei stock
Nuvei (TSX: NVEI) is the ring finger as it is the youngest in the stock market and has the potential to be the next growth story. It lies at the heart of the economy, providing pay-in and pay-out solutions across 200 markets in nearly 150 currencies and 40 cryptocurrencies. It offers its services to online merchants in gaming, retail, finance, and travel.
Nuvei will benefit as the world embraces digital payments. However, it is still young and has to face competition. The stock has surged 117% since its initial public offering (IPO) in September 2020.
The stock is already trading at a high valuation, but its high growth potential makes it a buy even at its current levels of ~$98.
Rogers Communications
Rogers Communications (TSX: RCI.B)(NYSE: RCI) is the pinky finger as the stock is currently hinging on a promise to acquire Shaw Communications. At present, Rogers is behind BCE and Telus in the telecom market.
The massive $20 billion takeover bid could help Rogers overtake Telus to become the second-largest telecom giant. While this acquisition won’t be easy, it is worth the effort, as it will give Roger an upper hand in the 5G rollout.
The acquisition will pause Rogers’s 5G investment for some time, but Shaw will help it expand its operations in Western Canada. That could make up for the lost time. You might want to be a part of this remarkable acquisition if it succeeds.
