New Investors: 3 Stocks to Help You Get Started Today

Are you interested in starting an investment portfolio? Here are three stocks that could help you get started!

| More on:
woman analyze data

Image source: Getty Images

So, you’ve finally decided to start investing. Congrats! That’s a great first step towards achieving financial independence. Now comes the hard part. How do you choose the right stocks to hold in your portfolio? I would suggest looking at companies that you’re familiar with. This would allow you to spend less time figuring out what the companies do and more time on learning different portfolio-allocation strategies that suit your needs and investment style. Here are three stocks that could get you started today.

Choose one of the Canadian banks

When it comes to recognizable companies in Canada, the banks should come to mind right away. Across the country, the banking industry is dominated by a group known as the Big Five. These banks have established very formidable moats, which have come as a result of decades of dominance within the industry. I believe that investors could do well by simply choosing the bank that they rely on for their financial needs.

However, if I had to choose one company, it would be Bank of Nova Scotia (TSX:BNS)(NYSE:BNS). This bank separates itself from its peers in that it has focused on its international growth. In 2021, Bank of Nova Scotia reported that nearly a third of all its earnings came from sources outside Canada. In addition, Bank of Nova Scotia is an excellent dividend company. It has paid investors a portion of its earnings for the past 189 years.

Invest in the railway industry

Canadians should also consider investing in the railway industry. Just as that industry served as the backbone of the country, spurring growth over the past decades, it could serve a similar role in your portfolio. The Canadian railway industry is dominated by two companies. The larger entity in this duopoly is Canadian National Railway (TSX:CNR)(NYSE:CNI). With nearly 33,000 km of track in its network, this company is also known as one of the largest railway companies in North America.

Canadian National is another excellent dividend stock. With a dividend-growth streak of 25 years, it’s listed as a Canadian Dividend Aristocrat. Only 10 other companies in Canada have managed to increase their dividend for as long as Canadian National has. This is an elite company in that regard.

This company is well known around the country

Finally, investors should consider investing in the grocery industry. The Canadian grocery industry is dominated by a small handful of companies. The one that interests me the most is Metro (TSX:MRU). Under its Metro, Food Basic, Super C, and Marché Richelieu banners, this company operates over 900 locations across the country.

Like the other two companies listed in this article, Metro is an outstanding dividend stock. It has managed to increase its dividend distribution in each of the past 26 years. Despite those continued increases, Metro’s dividend-payout ratio stands at 22%. That suggests that the company could continue to comfortably raise its dividend over the coming years.

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 has positions in BANK OF NOVA SCOTIA. The Motley Fool recommends BANK OF NOVA SCOTIA and Canadian National Railway.

More on Stocks for Beginners

woman looks out at horizon
Stocks for Beginners

Here’s How Much Canadians at 35 Need to Retire

If you want to create enough cash on hand to retire, then consider an ETF in one of the safest…

Read more »

Concept of multiple streams of income
Dividend Stocks

Got $10,000? Buy This Dividend Stock for $4,992.40 in Total Passive Income

Want almost $5,000 in annual passive income? Then you need a company bound for even more growth, with a dividend…

Read more »

RRSP Canadian Registered Retirement Savings Plan concept
Dividend Stocks

Watch Out! This is the Maximum Canadians Can Contribute to Their RRSP

We often discuss the maximum TFSA amount, but did you know there's a max for the RRSP as well? Here's…

Read more »

a person looks out a window into a cityscape
Dividend Stocks

1 Marvellous Canadian Dividend Stock Down 11% to Buy and Hold Immediately

Buying up this dividend stock while it's down isn't just a smart move, it could make you even more passive…

Read more »

Blocks conceptualizing the Registered Retirement Savings Plan
Dividend Stocks

CPP at 70: Is it Enough if Invested in an RRSP?

Even if you wait to take out CPP at 70, it's simply not going to cut it during retirement. Which…

Read more »

worry concern
Stocks for Beginners

3 Top Red Flags the CRA Watches for Every Single TFSA Holder

The TFSA is perhaps the best tool for creating extra income. However, don't fall for these CRA traps when investing!

Read more »

Data center woman holding laptop
Dividend Stocks

Buy 5,144 Shares of This Top Dividend Stock for $300/Month in Passive Income

Pick up the right dividend stock, and investors can look forward to high passive income each and every month.

Read more »

protect, safe, trust
Stocks for Beginners

2 Safe Canadian Stocks for Cautious Investors

Without taking unnecessary risks, cautious investors in Canada can still build a resilient portfolio by focusing on safe stocks like…

Read more »