A Balanced Stock Portfolio Every Investor Needs

Finding the perfect mix of investments to cater to both growth and income needs takes time and patience. Fortunately, new…

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Finding the perfect mix of investments to cater to both growth and income needs takes time and patience. Fortunately, new investors can start with this portfolio of stocks suitable for nearly every portfolio.

Banking on growth, earning some income

It would be near impossible to mention a balanced portfolio of stocks for investors to consider without including at least one of Canada’s big banks. Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is that bank to consider.

Like its Big Bank peers, Bank of Nova Scotia has a sizeable domestic branch network that provides a healthy recurring revenue stream. The bank also has a growing international segment, which is where that long-term opportunity lies. Unlike its peers that focused on the U.S. market for expansion, Scotiabank turned further south to Latin America.

Scotiabank has an established branch network across the Pacific Alliance trade bloc. Scotiabank’s presence in those markets renders it a preferred lender within the region, translating into massive growth potential.

The impressive growth also feeds Scotiabank’s impressive quarterly dividend, which currently provides a yield of 4.34%.

Buy and forget: Stable income, stable growth

Not all stocks can provide growth and income-earning potential. Fewer can do so while operating a recession-proof business.

Enter BCE (TSX:BCE)(NYSE:BCE), the second option to include in your balanced portfolio of stocks.

Apart from the standard bevy of subscription-based services, BCE also has a sizeable media segment that includes radio and TV stations, as well as interest in professional sports teams. If anything, the media segment drives value back to its core services.

BCE’s wireless segment should be of particular interest to investors. In the past decade, the importance of a wireless data connection has grown in importance. Arguably, in this post-pandemic world, that importance has increased even further.

Consumers have shifted their purchases primarily to online channels. A slew of new streaming services, meeting services for a remote workforce, and educational applications are chewing up data allowances like never before.

This all works out to the benefit of BCE, and by extension, the juicy 5.53% yield offered to investors. BCE is without a doubt a great long-term option that should be part of any balanced portfolio of stocks.

Avoid the hassles of being a landlord

The white-hot real-estate market has effectively priced first-time homebuyers and would-be rental property landlords out of the market. Fortunately, RioCan (TSX:REI.UN) can offer those prospective investors and would-be homeowners another option.

RioCan is one of the largest REITs in Canada. The company boasts a staggering portfolio of over 220 properties diversified across Canada’s major metro areas. Those properties are primarily commercial retail, but in recent years RioCan has shifted to mixed-use residential properties.

The concept is unique, allowing residential towers to be built atop retail space. The properties are also located in prime metro areas, along major transit lines. The segment, which RioCan dubs RioCan Living, addresses the needs of both would-be investors and homeowners.

Perhaps best of all, as RioCan continues to build out its mixed-use property portfolio further, prospective investors can get a monthly distribution just like a landlord.

The current yield works out to a respectable 4.19%.

Massive long-term upside awaits

Energy behemoth Suncor (TSX:SU)(NYSE:SU) rounds out the list of investments for a balanced portfolio of stocks. Most investors are familiar with Suncor, but few may realize the reasons why Suncor is such a superb option right now.

Like every business on the planet, Suncor was impacted by the pandemic. When demand and then oil prices dropped, Suncor felt that pinch. Like many other companies, Suncor slashed its dividend and worked on cutting costs.

Fast forward to today and Suncor’s efforts are paying dividends- literally. The company has improved efficiency, which coupled with a massive resurgence in oil prices has led to record-breaking results. The most recent results were so impressive that Suncor announced a 100% dividend hike. This will position the dividend yield well north of 5% to its pre-pandemic level.

As if that weren’t enough, the company recently announced its intent to buy back shares of the company, which will drive the still-discounted stock price significantly higher.

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 Demetris Afxentiou owns shares of The Bank of Nova Scotia. The Motley Fool recommends BANK OF NOVA SCOTIA.

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