With just a few short days left in 2021, there’s never been a better time to rebalance your portfolio. To start your 2022 portfolio, here are some of the stellar investments you should consider adding.
Stock #1: Bank of Montreal
What’s not to love about Bank of Montreal (TSX: BMO)(NYSE: BMO)? Over a century of stable dividend payments continues to see annual bumps. The most recent bump was a whopping 25% increase, bringing the yield to a tasty 3.92%.
Apart from operating a very stable (and defensive) operation domestically, BMO has expanded in recent years to the U.S. market. Until recently, that expansion was focused in the Midwest around Chicago, but that all changed last week. That was when BMO announced a $16 billion deal that will bring the bank into the lucrative California market.
Stock #2: How about a more passive-income approach?
If banking is a little too hands-on, perhaps an investment in Fortis (TSX: FTS)(NYSE: FTS) may help. Fortis is one of the largest utilities on the continent. The company has operations across the U.S., Canada, and the Caribbean.
As a utility, the overwhelming majority of Fortis’s business stems from regulated long-term contracts. Those contracts provide Fortis with a stable and recurring source of revenue that can last upwards of a decade.
That revenue stream also helps Fortis provide a juicy quarterly dividend to investors as well as provide an annual hike to that payout. That established tradition of an annual hike has now reached an incredible 48 consecutive years.
With a tasty yield of 3.53%, Fortis is a great stock to start your 2022 portfolio.
Stock #3: Canada’s retailer
Canadian Tire (TSX: CTC.A) is one of the oldest and most well-known retailers in Canada. Aside from its popularity, the Tire is also known among investors for its remarkable turnaround, foray into the mobile space and that impressive dividend.
Any one of these would be an impressive accomplishment. The fact that Canadian Tire has managed all three is remarkable.
In short, Canadian Tire has transformed the retail space in Canada, both through technology and vision. The Tire also revamped its mobile app to bridge the gap between modern, mobile-first shoppers and those that prefer a weekly circular.
Finally, Canadian Tire’s string of brand acquisitions in recent years has helped the company keep a solid online presence in a field of competitors. The quarterly 2.87% yield is also a reassuring point, making it perfect for investors. If you are looking to start your 2022 portfolio, Canadian Tire is a great place to start.
Stock #4: Stocked and good to go
When the pandemic shuttered countless businesses last year, grocery stores remained open. That was a notable moment where many investors realized the defensive appeal of a grocery stock.
That stock to consider is Metro (TSX: MRU). The company has a sprawling network of grocery stores under several different branding banners, located primarily in Ontario and Quebec. Additionally, Metro also owns the Jean Coutu pharmacy chain.
The necessity that a grocery stock provides makes this a core addition to any portfolio. Throw in Metro’s 27 years of consecutive annual increases to its dividend, and you have another buy-and-forget candidate.
Stock #5(G): It’s everywhere
I would be remiss if I didn’t mention at least one of Canada’s telecoms, and that telecom is Rogers Communications (TSX: RCI.B)(NYSE: RCI). Rogers boasts nationwide coverage across multiple subscription segments. The company is also diversified thanks to its massive media segment, which includes dozens of radio and TV stations.
Unlike some of its peers that still provide an annual dividend hike, Rogers has taken another path. Instead, the company uses those funds to pay down debt and invest in growth. That’s not to say the yield is insignificant; Rogers offers a quarterly distribution with a yield of 3.34%.
What investors should be looking to is the immense long-term opportunity provided through Rogers’s impressive wireless segment, which includes its much-hyped 5G network.
Start your 2022 portfolio right
Whether you opt to invest in one or all of the stocks noted above, the recipe is the same: strong picks that cater to a unique (and growing) segment of the market, while also offering a handsome income.
In my opinion, any of the stocks would do well to start your 2022 portfolio in good health.
