Diversifying your portfolio remains one of the most crucial aspects of investing. Achieving a good level of diversification however can be a troubling task, particularly for newer investors. Fortunately, there is help to start investing! The market also gives us plenty of options to choose from.
Here are four great options to add to any portfolio.
Start with a superb stock
Most investors have heard of Enbridge (TSX: ENB)(NYSE: ENB). The energy infrastructure behemoth operates one of the largest pipeline networks on the planet transporting massive amounts of crude and natural gas on a daily basis.
What most investors may not know is that Enbridge’s pipeline network generates a stable and recurring revenue stream. Additionally, Enbridge is investing heavily in renewable energy. In fact, the company has already amassed a renewable generating capacity of 5,000 MW.
If that weren’t enough, Enbridge also offers a juicy quarterly dividend with a solid track record of handsome annual upticks. The current yield works out to 6.59%, making it one of the better-paying returns on the market.
In short, there’s plenty to love about Enbridge, which is why it’s a superb stock to add to your portfolio.
Follow-up with a solid bank
It would be hard to compile a list of superb stocks to load up on without mentioning at least one of Canada’s big banks. Bank of Montreal (TSX: BMO)(NYSE: BMO) is neither the largest nor the most well-known of the banks, but it does offer investors growth and income potential.
In the most recent quarterly update, BMO reported earnings of $2,275 million. When compared to the same period last year, the bank posted an incredible 85% gain. The bank’s growing U.S. segment is where much of that growth potential lies. In the most recent quarter, it contributed $553 million towards the bank’s total earnings.
Turning to income, BMO really begins to shine. The bank has been paying out dividends longer than any other bank in Canada, since 1829 without fail. Today, that yield works out to a respectable 3.35%.
Add a great investment that everyone knows
BCE (TSX: BCE)(NYSE: BCE) is not just one of the largest telecoms in Canada. BCE is also a superb stock to load up on with impressive growth and income-earning opportunities.
Telecoms operate very reliable and incredibly defensive businesses. That defensive appeal has grown significantly in the past decade, particularly as the importance of wireless devices has increased. Wireless devices are now part of our inter-connected lives with ever-increasing data needs. They are also becoming a primary method of shopping, fitness tracking, and entertainment.
That necessity makes BCE’s quarterly dividend all the more appealing. BCE is another company that has been paying out dividends for over a century, and the current 5.40% yield remains very attractive.
Finish with an unsung hero
Some of the best stocks around are those that serve a critical place in our society, yet we rarely think of them as investments. This is where the appeal of a grocer, such as Metro (TSX: MRU) comes into play.
Grocery chains were one of the few businesses that excelled under the pandemic. Irrespective of the pandemic, people need food and supplies. Arguably, that’s an understatement. In reality, during the early days of the pandemic, people were stocking up on staples from grocery stores such as Metro.
Not only does this make Metro a superb long-term defensive holding, but also one that can offer growth and some income. The grocer’s quarterly dividend works out to a respectable yield of 1.67%.
Final thoughts
No stock is without risk. The four stocks noted above are all well-diversified and offer something for nearly every portfolio. For new and seasoned investors alike, adding one or more of these stocks could provide years of solid growth and income-earning potential.
Buy them, hold them, and when you do retire, do so comfortably thanks to some superb stocks to load up on right now.
