Got $250? Here Are 3 Smart Stocks to Buy Now

Consider investing in these three stocks if you’re looking for good long-term investments for your self-directed portfolio.

| More on:
Woman has an idea

Image source: Getty Images

Stock market investing can be lucrative for investors who have the discipline and patience to use a long-term strategy. It is crucial to be selective in your search for TSX stocks that can stand the test of time and deliver stellar long-term returns. Finding high-quality assets you can buy and hold in your portfolio for several years is possible.

Today, I will discuss three top TSX stocks that could be promising long-term prospects for you to consider.


Fortis (TSX:FTS)(NYSE:FTS) is a $28.74 billion market capitalization Canadian utility holdings company. It owns and operates several electric and natural gas utility businesses across Canada, the U.S., the Caribbean, and Central America. It generates almost its entire revenue through rate-regulated and long-term contracted assets, creating predictable cash flows.

As of this writing, Fortis stock trades for $60.04 per share and boasts a 3.56% dividend yield. The Canadian Dividend Aristocrat has a track record of delivering dividend hikes for the last 48 years. As its capital-investment plan proceeds, Fortis looks well positioned to increase its rate base in the coming years and become a Canadian Dividend King with a 50-year dividend-growth streak.

Royal Bank of Canada

Royal Bank of Canada (TSX:RY)(NYSE:RY) is a $183.71 billion market capitalization financial services company and the largest bank in Canada by market capitalization. The financial institution has over 17 million clients worldwide and is the pinnacle of stability among its peers. The bank has the liquidity to ride the wave of market volatility and come out stronger on the other side.

As of this writing, Royal Bank of Canada stock trades for $129.60 per share and boasts a juicy 3.95% dividend yield. The largest Canadian bank by market capitalization continues to put up stellar performances every quarter. Offering stability and a proven ability to deliver long-term wealth growth, it could be an excellent addition to your investment portfolio.

Northland Power

Northland Power (TSX:NPI) is a $10.65 billion market capitalization independent power producer headquartered in Toronto. The company builds, owns, develops, and operates an internationally diversified portfolio of renewable and green energy assets.

Northland Power stock might be the smallest among the three stocks in market capitalization, but it boasts plenty of potential to deliver long-term wealth growth. As of this writing, it trades for $45.08 per share and boasts a modest 2.65% dividend yield.

The renewable energy sector is geared for strong growth in the coming decades. Investing in its shares at current levels could set you up to become a much wealthier investor.

Foolish takeaway

These companies have shown the ability to deliver consistent earnings growth and positive cash flows time and time again. Investing in these stocks today and holding onto them in your self-directed portfolio for the next few decades could make you a much wealthier investor in the long run.

If you have $250 to invest right now, adding shares of these three Canadian companies could be a wise way to allocate that money.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends FORTIS INC.

More on Dividend Stocks

Dividend Stocks

10 Years From Now, You’ll Be Glad You Bought These Magnificent TSX Dividend Stocks

The TSX is lucrative to buy these magnificent dividend stocks in bulk and be proud of this decision 10 years…

Read more »

calculate and analyze stock
Dividend Stocks

4 Fabulous Dividend Stocks to Buy in July

Are you looking for long-term income? These four dividend stocks should not only provide you with value in July but…

Read more »

financial freedom sign
Dividend Stocks

5 Steps to Financial Freedom for Canadian Millennials

Follow these steps and nothing can stop Canadian millennials from achieving their early retirement dreams.

Read more »

Investor wonders if it's safe to buy stocks now
Dividend Stocks

We’re Only Getting Older: A Top TSX Stock That Benefits From an Aging Population

For a bet on the aging population, consider this small-cap stock with growth potential.

Read more »

Growing plant shoots on coins
Dividend Stocks

Yield Today, Growth Tomorrow: 3 Stocks to Keep Building Your Wealth

For investors seeking yield today and growth tomorrow, these top Canadian dividend stocks are certainly worth considering right now.

Read more »

Payday ringed on a calendar
Dividend Stocks

This 10.72% Dividend Stock Pays Cash Every Month

This dividend stock remains a consistent, defensive dividend producer that will give up over 10% in income each and every…

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

TFSA Investors: 2 Standout Domestic Stocks With 7% Yields

These top dividend-growth stocks look oversold.

Read more »

Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Despite their recent declines, the long-term growth outlook of these two top dividend stocks remains strong, which could help their…

Read more »