As investors, it’s important that we reflect on our past investment decisions and think about what we’d do differently if we had it all to do over again. Doing so will not only help you understand some of the choices you’ve made but could also help you navigate portfolio management decisions in the future. Personally, I often think about how I’d go about starting a portfolio if I could do it all over again. That’s exactly what I’ll be discussing in this article. Here are three stocks I’d buy if I were starting a portfolio today.
Looking for reliable growth
As someone with a longer investment horizon ahead, I definitely prioritize growth in my portfolio. However, as a new investor, I believe it would be a good idea to focus on blue-chip companies. Fortunately, companies like Constellation Software (TSX:CSU) are listed on the TSX. This company may be one of the most successful growth stocks in Canada. Since its IPO, Constellation Software stock has gained more than 10,300%. That represents a CAGR of 33.7%!
For those that are unfamiliar, Constellation Software is an acquirer of vertical market software businesses. The company is well known for its selective acquisitions of “great businesses.” After completing an acquisition, Constellation Software provides the resources required to turn those great businesses into exceptional ones. Its playbook has proven to be very successful over the past two decades and I believe this stock still has a long growth runway ahead.
Add solid dividend stocks
Although I focus on growth, I realize that diversification is important. That can mean many different things. It can be diversification in terms of sector and geography. However, I also like to think of diversification in terms of a nice split between growth and dividend stocks. Some of the best dividend stocks are listed as Canadian Dividend Aristocrats. These are companies that have been able to increase their dividend distributions for at least five years in a row.
Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is a stock that I believe more Canadians should hold. It’s the third-largest bank in the country in terms of assets, revenue, and market cap. Bank of Nova Scotia has been successfully paying dividends to shareholders ever since it first started doing so 189 years ago. This stock offers investors a forward dividend yield of 4.87%, meaning you’ll get good value for your money.
A foundational company for your portfolio
Finally, investors should consider adding Canadian National Railway (TSX:CNR)(NYSE:CNI) to their portfolio. What’s interesting about this industry is that it’s essential to the successful operation of our country’s economy. Canada is a vast landscape and we currently do not have any way of transporting large amounts of goods over long distances if not by rail.
Canadian National stock has been an excellent performer over the years. In fact, over the past five years, the stock has gained a respectable 42%. That greatly outpaces the performance of the broader market over the same period. Canadian National is also an excellent dividend stock. It has increased its dividend in each of the past 25 years. This puts it among the elite on the list of Canadian Dividend Aristocrats. If you’re looking for a solid stock that offers both growth and dividend stability, look no further than Canadian National Railway.
