3 Stocks I Plan on Buying Soon

If you’re looking for stock ideas for your portfolio, here are three stocks I plan on buying soon!

| More on:
Double exposure of a businessman and stairs - Business Success Concept

Image source: Getty Images

Readers familiar with my writing will know that I’m a very big advocate of diversified portfolios. As such, I believe investors should work on holding companies that serve different purposes in your portfolio. For example, you could hold one company in hopes of seeing its stock price appreciate and hold another stock as a way of generating passive income. In this article, I’ll discuss three TSX stocks I plan on buying soon. Each company mentioned will serve a different purpose in my portfolio.

A top blue-chip stock

The first type of stock I’m looking at is a blue-chip company. This is a company that is considered established in its industry and more mature than companies that may be focused on achieving higher growth rates. The first stock I plan on buying soon is Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM). With a portfolio of more than $625 billion of assets under management, Brookfield is one of the largest alternative asset management firms in the world.

Through its subsidiaries, Brookfield has exposure to the real estate, infrastructure, and utility industries. The company’s CEO Bruce Flatt is often referred to as Canada’s Warren Buffett. He draws comparisons to the Oracle of Omaha for his value investing style, a long tenure as CEO, and a large ownership stake in his company. Since its IPO in August 1995, Brookfield stock has nearly tripled the returns of the broader market. For all these reasons and more, I expect to become a Brookfield shareholder in the near future.

Hoping to increase my passive-income sources

As it stands, my portfolio is very light when it comes to dividend stocks. Because of this, I’d like to increase my weighting in that regard. Consequently, I’d be able to generate more passive income. When it comes dividend stocks, few companies are as impressive as Fortis (TSX:FTS)(NYSE:FTS). The company holds the second-longest active dividend-growth streak in Canada. At 47 years, the next longest active dividend-growth streak is more than a decade and a half shorter.

Fortis provides more than 3.4 million customers in Canada, the United States, and the Caribbean with regulated gas and electric utilities. Because of the dependability of its business, Fortis is known as a recession-proof stock. This means that investors can expect the company to be less volatile during periods of market uncertainty. Currently, there’s a lot of uncertainty due to rising interest rates and a new COVID-19 variant. These reasons make Fortis all the more attractive today.

Not giving up on growth stocks

My focus in the stock market has primarily been on growth stocks. Of all the growth stocks available on the TSX, Shopify (TSX:SHOP)(NYSE:SHOP) has long been my favourite stock. Currently, there seems to be a lot of selling pressure surrounding growth stocks. As mentioned earlier, the potential of rising interest rates and the COVID-19 Omicron variant may be playing a large role in that. However, certain growth stocks like Shopify provide excellent potential moving forward.

In terms of my investment checklist, Shopify still ticks off a lot of boxes. The company is a leader in an emerging and important industry. Shopify is also led by an involved and heavily invested founder. Finally, its revenue continues to grow at a very impressive rate. Because of all those reasons, I can see myself adding to my already large Shopify position.

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 Shopify. The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends Brookfield Asset Management Inc. CL.A LV and FORTIS INC.

More on Stocks for Beginners

A plant grows from coins.
Dividend Stocks

2 Young TSX Stocks You’ll Be Glad You Bought in 10 Years

Youth means nothing when you plan to hold strong companies long term. These two TSX stocks should therefore be first…

Read more »

Financial technology concept.
Dividend Stocks

2 TSX Value Stocks to Buy for Peace of Mind (and a Crazy-Good Deal)

2 TSX stocks that could outperform in the long term.

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Dividend Stocks

3 Value Stocks That Smart Investors Should Seriously Consider

You get it all with these stable stocks. They may have less growth now, but will have incredibly high growth…

Read more »

stock research, analyze data
Stocks for Beginners

Is Dollarama Stock a Buy Before its Q4 Earnings?

Dollarama stock has stayed resilient and notably outperformed markets in this bear market.

Read more »

edit Person using calculator next to charts and graphs
Stocks for Beginners

Where to Invest $10,000 in March 2023

Here are two options at either end of the risk spectrum for a $10,000 lump sum investment.

Read more »

oil and gas pipeline
Energy Stocks

Why Tourmaline Oil Stock Just Fell to 52-week Lows?

The recent correction in Tourmaline Oil stock could be an opportunity.

Read more »

Credit card, online shopping, retail
Stocks for Beginners

TFSA Investors: How to Tackle Debt for Good and Come Out on Top

If you have tons of debt and it's become overwhelming, using the "snowball method" can certainly help you tackle it,…

Read more »

tsx today
Stocks for Beginners

TSX Today: What to Watch for in Stocks on Tuesday, March 21

TSX investors may want to closely monitor the latest domestic inflation report today.

Read more »