New Investors: Here’s a Simple 4-Stock Portfolio to Get Started

For all the new investors just beginning to save and invest their money, here are a few stocks to buy that can get you started in 20 minutes or less.

If you’re just starting to invest, deciding which stocks to buy first can be challenging. With so many stocks to consider and so many different sectors and industries, the sheer amount of choice can be overwhelming. So, here’s a simple stock portfolio that can help get you started.

Eventually, as you have more time to save and invest more cash, you can acquire more stocks and better diversify your money.

However, if you’re a new investor looking to get started today, here are four Canadian stocks you can buy that will already start to diversify your money.

A top defensive stock

In the current market environment, it can understandably be a bit intimidating for new investors to start buying stocks. However, if you focus on a highly safe and reliable business that you plan to hold for years, there should be nothing to worry about.

That’s why this list today starts with one of the safest and most reliable stocks in Canada: Emera (TSX: EMA).

Emera is a utility stock that provides electricity and gas services with operations all over North America. These companies are incredibly resilient, because the services they offer are essential.

Not only that, but utility stocks have highly predictable earnings growth and are constantly increasing their dividends. Therefore, new investors looking to buy stocks with confidence today can commit to Emera knowing it will protect your capital, pay you a handsome dividend today, and continue increasing that dividend by at least 4% over the next few years.

One of the best large-cap stocks for new investors to buy

Another excellent stock to buy today, whether you’re a new investor or have been buying stocks for years, is Enbridge (TSX: ENB)(NYSE: ENB). Buying Enbridge offers investors exposure to the energy industry, slightly more growth potential and a higher dividend. However, in general, Enbridge is another stock you can buy for defence.

Enbridge is a massive company, and its operations are crucial to the North American economy, making it a highly reliable stock to buy. Not only that, but its operations are well diversified, allowing Enbridge to continue seeing solid results, even if the energy sector is facing headwinds.

Therefore, considering that Enbridge offers a current yield of 6% and also increases its dividend each year, it’s certainly one of the best stocks for new investors to consider today.

An ultra-cheap value stock

In addition to defensive stocks, right now is an excellent opportunity to buy high-quality Canadian stocks while they’re cheap. That’s why one of the best stocks I’d recommend new investors consider is goeasy (TSX: GSY).

goeasy is exceptionally cheap today, but it’s also a high-quality growth stock. While the stock is undervalued, now is an excellent time to gain exposure.

The stock is a financial company that offers loans and leases furniture to consumers, usually with below-prime credit scores. This is a highly lucrative business, especially considering how well goeasy has managed its loan book.

Therefore, while goeasy is cheap, trading at a forward price-to-earnings ratio of 9.7 times, it’s easily one of the best stocks for new investors to buy now.

One of the best high-yield dividend stocks that’s perfect for new investors

If you’re an investor that likes to earn passive income and wants to own high-quality dividend stocks, Pizza Pizza Royalty (TSX: PZA) is another excellent stock to consider.

The company earns royalties on all the sales done at each Pizza Pizza and Pizza 73 location across Canada. The stock is incredibly safe, because it has almost no expenses and simply collects a royalty, pays taxes, and returns the rest of the cash to investors.

This makes it an easy stock to understand, and because it offers an impressive 5.95% dividend yield, it’s easily one of the best stocks for new investors to buy today.

Bottom line

This sample portfolio shows how investors can start investing today with a small amount of capital and begin to build a diversified portfolio. Although, over time, you can add more stocks and more diversification, right now, investors have exposure to several different industries and different types of stocks.

So, if you’re a new investor looking to start buying stocks after all the recent volatility, now is an excellent time.

Fool contributor Daniel Da Costa has positions in ENBRIDGE INC and goeasy Ltd. The Motley Fool has positions in and recommends PIZZA PIZZA ROYALTY CORP. The Motley Fool recommends EMERA INCORPORATED and Enbridge.

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