Now that the mercury is creeping up, and people are gathering again outside on patios, it seems only fitting for investors to take a fresh look at their portfolios. There are some superb, hot stock buys available now that will do well in any well-diversified portfolio.
Here are some of those options to consider.
Catch the train to dividend growth
Canadian National Railway (TSX: CNR)(NYSE: CNI) is one of the most defensive stocks on the market. That appeal comes thanks to the sheer necessity of the goods that CN transports as well as the massive size of CN’s network.
The 33,000 km network extends from coast to coast and traverses down through the U.S. Midwest to the Gulf coast. In terms of goods, CN hauls everything from automotive components, chemicals, and crude oil to wheat, finished products, and raw materials.
In total, the railroad hauls upwards of $250 billion worth of goods each year. This makes the railroad somewhat of an arterial vein of the entire North American economy.
Adding to that appeal is CN’s quarterly dividend. The current yield works out to a respectable 1.97%, and the railroad has provided consecutive annual upticks to that dividend for 25 years. That factor alone makes CN one of the hot stock buys for your portfolio.
Sizzled, fried, or poured, there’s something here for everyone
Speaking of heat, fast food is an area that impressed during the pandemic. Despite indoor dining options being shuttered, fast-food operators stepped up to the plate and expanded delivery and rewards options for customers.
In the case of Restaurant Brands International (TSX: QSR)(NYSE: QSR), the potential for investors is significant. For those that are unfamiliar with the company, Restaurant Brands is the name behind Burger King, Tim Hortons, Popeyes, and Firehouse Subs.
In the most recent quarter, Restaurant Brands saw same-store sales surge 14% year over year. Those solid numbers coupled with a significant number of new store openings in the quarter translate into huge potential.
In terms of a dividend, the company offers an appetizing quarterly payout that carries a yield of 4.23%. This means that a $35,000 investment will generate an income of $1,480. Interestingly, there’s still more to love.
Prospective investors should keep in mind that the dividend is well covered by free cash flow. Additionally, Restaurant Brands continues to invest in growth initiatives and share buybacks. Oh, and let’s not forget the stock is trading down 13% this year, making it one of the tasty hot stock buys for any portfolio.
Sit around and wait for those dividends to come
Canada’s big banks are superb investments. They are stable revenue generators and provide a handsome income. This makes them the perfect buy-and-forget option for any portfolio. But which bank should you buy?
Bank of Montreal (TSX: BMO)(NYSE: BMO) is a bank worth considering. BMO is neither the largest nor most well known of the big banks, but it is the oldest. In fact, BMO is just a few years out from hitting an incredible 200 years of paying out dividends to investors.
Today, that dividend carries a yield of 4.02%, making it one of the better-paying options for income seekers. Adding to that appeal is the fact that BMO recently announced a 6% hike to its dividend, which follows a whopping 25% increase announced late last year.
Apart from that stellar dividend and income potential, BMO earns its place as a stellar hot buy thanks to its impressive growth potential.
Canada’s big banks have turned to foreign markets to both accelerate growth and diversify operations. In the case of BMO, the bank announced an intriguing acquisition late last year for Bank of the West.
The US$16.3 billion deal will expand BMO’s exposure to 32 U.S. state markets, including California, adding millions of new customers. Upon completion, BMO will join an elite club among the largest banks in the U.S. market.
These hot stock buys won’t be hot forever
All investments, including the three hot stock buys mentioned, carry some risk. Fortunately, in the case of the three stocks above, they are leaders within their respective fields. They also boast strong financials, invest in growth, and pay out handsome dividends. In short, they are great picks.
In my opinion, one or all should be part of any well-diversified portfolio.
