3 Top Stocks Outside the Tech Sector to Buy in November 2021

There are many companies outside the tech sector that can generate excellent returns over the long term.

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Investors often regard the tech sector as the area to focus on if market-beating gains are desired. However, there are many companies outside the tech sector that can generate excellent returns over the long term. In this article, I’ll discuss three top stocks outside the tech sector that investors should consider buying this month.

This is one of the most popular industries in Canada

Canadians are generally very attracted to the banking industry, and with good reason. The Canadian banking industry is highly regulated. Because of that, new (and smaller) competitors have a hard time disrupting industry leaders. In Canada, the Big Five are known to have large and growing moats. Of those companies, Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is my top pick.

The company separates itself from its peers via its international focus. As of its 2020 annual report, 16% of Bank of Nova Scotia’s earnings come from the Pacific Alliance. This is a region that is forecasted to grow at a much faster rate than Canada and the United States in the coming years. If Bank of Nova Scotia can maintain its leadership position in that region, the company could see its stock soar. In addition to the growth potential, Bank of Nova Scotia stock offers investors a very attractive forward dividend yield of 4.44%.

Invest alongside Canada’s Warren Buffett

There’s no denying that Warren Buffett is one of the greatest investors of his generation — perhaps of all time. To be compared to him in a positive manner is no small compliment. However, that’s exactly the situation when it comes to Bruce Flatt. The CEO of Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) is often compared to the Oracle of Omaha for his value investing style, long tenure as CEO, and large ownership stake in his company.

Aside from its CEO, Brookfield is widely respected as one of the largest alternative asset management firms in the world. Through its subsidiaries, the company operates and invests in assets within the real estate, infrastructure, and renewable utility industries. As of this writing, Brookfield has more than $625 billion in assets under management. The company is expected to develop North America’s largest sustainable neighbourhood in partnership with Tesla in the near future.

This stock could be the best dividend company in Canada

When it comes to dividend companies, few are more impressive than Fortis (TSX:FTS)(NYSE:FTS). At 47 years, the company claims the second-longest active dividend-growth streak in the country. This speaks volumes of Fortis’s ability to allocate capital over the long term. Known as a recession-proof company, Fortis is a stock that investors can turn to during market downturns to provide stability to their portfolio.

As of this writing, Fortis offers a forward dividend yield of 3.88%. Although its payout ratio is a bit higher than dividend investors should be happy with, the company’s long history of increasing dividends should be reassuring. This is one of the top dividend stocks on the TSX.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Jed Lloren owns shares of BANK OF NOVA SCOTIA and Tesla. The Motley Fool owns shares of and recommends Brookfield Asset Management and Tesla. The Motley Fool recommends BANK OF NOVA SCOTIA, Brookfield Asset Management Inc. CL.A LV, and FORTIS INC.

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