The old saying goes, “The best day to start investing was yesterday. The next best day is today.” I believe that to be very true. When it comes to the stock market, the most important thing is time in the market. That means investors shouldn’t focus too much on how the market looks today and instead focus on finding the right companies to hold over the long term. In this article, I’ll discuss three stocks that new investors should buy today.
Start with one of the banks
The Canadian banking industry features many stocks that first-time investors should consider for their portfolios. This is because the industry is highly regulated. That allows companies to be very stable, making them ideal positions for new investors. However, banks should be even more attractive to investors today because of the high-interest environment. Historically, banks have seen a widening in profit margins as interest rates increase.
Of the Big Five Canadian banks, my top pick has long been Bank of Nova Scotia (TSX: BNS)(NYSE: BNS). It differentiates itself from its peers through its focus on international growth. In 2021, nearly a third of its earnings came from sources outside Canada. In Bank of Nova Scotia’s Q2 earnings presentation, it reported that the company saw a 50% year-over-year growth in its international revenue.
Buy this excellent company
New investors should also consider buying shares of Canadian National Railway (TSX: CNR)(NYSE: CNI). It is one of the most recognized companies in the country. Operating nearly 33,000 km of track, Canadian National’s rail network spans from British Columbia to Nova Scotia. It also operates as far south as Louisiana.
Canadian National is known as a Dividend Aristocrat. It has increased its dividend in each of the past 25 years. That makes it only one of 11 TSX-listed companies to reach that milestone. Despite all those dividend raises, Canadian National still manages to maintain a low dividend-payout ratio of 37.7%. That suggests that the company could continue to comfortably raise its dividend in the coming years.
Look for companies that lead multiple industries
If you look at the most successful companies in the world, you’ll notice that they often generate revenue from different sources. It’s very good for a company to not put all its eggs in the same basket, because it can utilize a multifaceted approach. Telus (TSX: T)(NYSE: TU) is an excellent example of such a company. It’s primarily known as being one of Canada’s largest telecom providers. However, what many investors don’t know is that it’s also a leading player in Canada’s healthcare industry.
Telus provides healthcare professionals with many services like its long line of EMR offerings. What interests me most about Telus Health is its MyCare service. This is its telehealth app, which allows patients to seek medical attention from the comfort of their own homes. As telehealth continues to penetrate the Canadian healthcare industry, expect Telus to continue focusing on this aspect of its business.
