Investors seeking total returns have come to the right place. Indeed, given how fast growth stocks have taken off in recent years, looking for a balanced approach to investing seems wise. Companies that pay reasonable dividend yields tend to produce more stable returns over time.
Additionally, for those retired or in search for a passive income, investing in total-return stocks for one’s Registered Retirement Savings Plan could be a smart move. Stocks offering capital appreciation and good dividend returns provide an obvious advantage as capital preservation tools over time.
That said, finding the best such total return isn’t that easy. Here are three top picks in this regard.
Top total return stocks: TD Bank
Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is a top Canadian bank which has an incredible long-term track record of providing total returns. Indeed, TD Bank’s current yield of 3.6% is extremely attractive, relative to where bond yields are.
Additionally, once regulators allow for dividend hikes, I expect TD to be among the first to raise its distribution to shareholders. Over the past five years alone, TD has been able to raise its dividend, on average, at around 9% a year. That’s on top of great earnings growth, which has propelled this stock higher.
Accordingly, investors looking for a core portfolio holding may want to consider TD Bank. This company’s growth prospects remain strong, particularly when we consider the economic reopening underway.
Restaurant Brands International
From a growth perspective, there’s a lot to like about Restaurant Brands’s model. This company is well positioned to grow in key emerging markets in Asia. Much of this is to do with the company’s quality banners including Burger King, Popeyes Louisiana Kitchen, and Tim Hortons. For long-term investors, these brands offer an attractive moat around Restaurant Brands’s business.
Restaurant Brands has grown its revenue by approximately 37% year over year, and I expect more on the horizon. Indeed, from the perspective of total returns, Restaurant Brands is an excellent holding in a well-diversified portfolio.
Those seeking total return in any portfolio may want to consider diversification as a factor to focus on. In this regard, gold miners and gold-related stocks provide intriguing upside in today’s volatile and overpriced market.
In the gold mining space, Franco-Nevada (TSX:FNV)(NYSE:FNV) is a company I’ve had my eye on for some time. This Canadian-based gold royalty companies earns income streams from gold miners in exchange for up-front investments to help get mines started.
Given where the price of gold is today, Franco-Nevada has benefited greatly from production increases among its various partner companies. I expect this trend to continue for some time.
Indeed, as far as safety, defensiveness, and growth go, Franco-Nevada is a long-term winner. Looking at this stock’s long-term chart, investors will also note very impressive long-term growth. All in all, this stock is a winner.