Are you a new investor who wants to start building a portfolio of Canadian stocks? Many investors have recently started becoming more interested in the stock market. All the talk about exciting and high-growth stocks making investors wealthy on the back of a strong bull run by the stock market might have aroused some interest in you to become an investor yourself.
The advent of trading platforms and new fintech companies has made stock market investing much more accessible. If you’re just starting investing, you might be interested in quickly adding some high-growth stocks to your portfolio for rapid wealth growth. However, it is important to establish a strong foundation before you do that.
Establishing core foundations for your investment portfolio with reliable and less risky stocks might not seem exciting. But a solid foundation for your portfolio can protect you from the effects of market downturns impacting high-growth stocks that are prone to greater volatility during downturns.
Today, I will discuss two well-established TSX stocks that could serve as ideal foundations for any investor portfolio.
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Enbridge
Enbridge (TSX: ENB)(NYSE: ENB) stock is a high-yield dividend stock from the Canadian energy sector that could be a significant addition to your investment portfolio. The energy infrastructure company is responsible for transporting around 25% of all the oil produced in North America and a fifth of all the natural gas consumed by the U.S.
The company has also been gearing up to expand its green energy portfolio to prepare itself for a future dominated by renewable energy. The company’s diversified revenue streams have provided it with stable cash flows for decades that it shares with its investors through shareholder dividends. It is also a Canadian Dividend Aristocrat with over 25 years of dividend growth.
The stock is trading for $52.43 per share at writing and boasts a juicy 6.37% dividend yield.
Canadian National Railway
Canadian National Railway (TSX: CNR)(NYSE: CNI) is another Canadian Dividend Aristocrat with a long dividend growth streak and an ideal long-term investment. CN Railway boasts the most extensive railway network in North America, playing a vital part in the entire continent’s economy. CN Railway’s railway network connects three different coasts, putting it in a solid position to dominate the industry for decades.
The massive barriers to entry and significant competitive advantages make CN Railway stock an excellent asset to buy and hold for the long run. The company boasts the potential to continue expanding its operations for decades to come. CN Railway stock is trading for $164.83 per share at writing and boasts a meager but reliable 1.49% dividend yield.
Foolish takeaway
The core foundation for an investor’s portfolio should comprise companies with a long-standing presence in the economy and companies that are typically considered household names for stock market investors. The businesses should come with strong operations and excellent margins that allow the companies to generate strong and reliable cash flows.
Enbridge stock and CN Railway stock could be ideal additions to your portfolio as foundational holdings. Both companies have decades of excellent performances to vouch for them and can provide you with reliable long-term shareholder returns through capital appreciation and shareholder dividends.
