Today marks Thanksgiving in the United States. This also marks the unofficial start of the holiday shopping season. For investors, this also signifies a time to rebalance your portfolio and prepare for 2022. In the spirit of today’s holiday, here are some of the stocks I’m thankful for this year.
Banking on growth and waiting on dividends
Bank if Nova Scotia (TSX: BNS)(NYSE: BNS) is the first stock I’m thankful for. Canada’s most international bank has surged over 20% year to date, and there’s still more joy to come in the next few weeks.
Why am I thankful for Bank of Nova Scotia? Scotiabank’s focus on Latin America as a primary growth driver is set to provide the bank with years of stellar growth. Furthermore, the current 4.32% yield provides a tasty dividend that any investor will welcome.
Finally, with the moratorium on dividend hikes and buybacks lifted, investors could soon see a significant hike on that already tasty dividend coming before the end of the year.
A yield of over 5% from a defensive stock?
Another great stock I’m thankful for is the telecom behemoth that is BCE (TSX: BCE)(NYSE: BCE). BCE is an all-around great investment. In addition to providing the usual bevy of subscription-based offerings, BCE also has a massive media segment that provides a diversified revenue stream.
Those subscription-based offerings, particularly the wireless and internet segments have grown in importance since the pandemic started. In other words, what was once a defensive investment option has been elevated to a necessity for education, work, commerce, and entertainment.
Oh, and who can forget the 5.38% yield that BCE provides to investors? That factor alone elevates BCE to a list of stocks I’m thankful for. Thank you, BCE!
The hidden gem of the pandemic is a great buy
The pandemic really made us re-think how to do business, buy food, attend classes, and even interact with one another. It accelerated the adoption of mobile commerce, even in some areas that were previously out of the question, such as grocers.
That’s just one reason why Metro (TSX: MRU) is another stock I’m thankful for. The Quebec-based grocer has an impressive network of over 900 grocery stores and pharmacies sprinkled across Ontario and Quebec.
During the pandemic, Metro bravely stayed open and saw sales shoot into the stratosphere, as shoppers stockpiled goods. With the pandemic arguably coming to an end, those record sales may dip, but the defensive appeal of Metro is off the charts.
It’s also worth noting that Metro has provided annual upticks to its quarterly dividend for well over a decade. The current yield works out to a respectable 1.59%.
A reliable business means reliable income
Utilities are great defensive stocks I’m thankful for. Topping that list is Fortis (TSX: FTS)(NYSE: FTS). Fortis is one of the largest utilities on the continent, with over 3.4 million utility customers and a nearly completely regulated business.
The regulated nature of the business means that Fortis has a recurring and stable revenue stream, which is then passed on to investors in the form of a dividend. That quarterly dividend currently works out to a 3.81% yield.
If that isn’t enough, prospective investors should take note that Fortis has provided annual consecutive hikes to that dividend for 48 consecutive years. Fortis is also committed to continuing that practice through 2025, at which point the stock will be the only Dividend King in Canada.
Stocks I’m thankful for are everywhere: Where are yours?
All the stocks noted above have excelled during the past few years, if not longer. They also offer some of the tastiest dividends on the market, making them superb investment options.
While no stock is without some risk, in my opinion, adding one or more of these stocks to your well-diversified portfolio can provide years of growth and income-earning potential.
Buy them, hold them, and retire comfortably.
