New investors seem to be in a constant struggle of either wanting to buy as much as they can, as quickly as they can, or sell completely fearful that their TSX stocks are going to suddenly drop. This fear is what can drive most of the market, unfortunately, which is why new investors need to be prepared before they dive in head first.
There are plenty of articles out there on how to get started with a portfolio. Creating a budget, having a goal — all of these things should be kept in mind. But for me, I’m going to focus on using the KISS model and stocks to get you there.
The KISS model is what some The Office fans will remember as Keep It Simple, Stupid. And that goes for investing as well. Don’t think you’re going to be that one person who finds the next big thing. Instead, keep it simple with these three TSX stocks.
BCE
A great beginner stock for new investors to consider is BCE (TSX: BCE)(NYSE: BCE). BCE stock is the largest of the telecommunications companies out there, and growing all the time. It managed to get its fibre-to-the-home network started before the pandemic. This was huge because the work-from-home economy demands fast internet.
Now, it’s expanding further with its 5G rollout. This puts it ahead of the other competitors, and allows BCE stock to remain firmly in place as the first of the three big Canadian telecoms. And yet, it remains a strong choice even as the market recovers and performs so well. Shares trade at 20.7 times earnings and 3 times book value. The national carrier has a dividend yield of 5.7%, and shares are up 3% in the last month. Long term, BCE stock is up 146% in the last decade.
CP stock
Canadian Pacific Railway (TSX: CP)(NYSE: CP) is another no-brainer for new investors to consider for their TSX stocks. You need products, and those products include everything from oil and gas to power your home, to your car and food. And CP ships it all. Plus, it’s about to ship even more.
The last decade has been a busy one, as CP stock became a lean, mean money-making and cost-cutting machine. Now it has the ability to purchase Kansas City Southern for US$31 billion, and analysts are certain this will be amazing for long-term investors.
Short-term hasn’t been bad either. While CP stock cut its dividend, shares have been rising steadily. The company is up 14% in the last month, and an incredible 583% in the last decade alone.
CIBC stock
Finally, if you’re going to keep it simple then look for a simple Big Six Bank. I’d prefer Canadian Imperial Bank of Commerce (TSX: CM)(NYSE: CM) right now as it offers the best dividend at the best price, thanks to a stock split. You can pick up CIBC stock today trading at just 9.6 times earnings, with a 4.9% dividend yield.
And honestly, CIBC stock is getting better all the time. It’s one of the TSX stocks in the banking industry looking for new opportunities, and that includes with everyday clients. It offers more options, more services, and has really been working on customer satisfaction. This has all helped the company bring in revenue before, and should continue to help in the future.
Shares of CIBC stock are up 14% in the last month, and 191% over the last decade.
