Building out that perfect long-term portfolio takes time and plenty of patience. Fortunately, the market gives us plenty of great options to consider that can cater to both growth and income needs. New investors looking to kickstart their portfolios should start September with these three superb picks.
Comfortable long-term growth and a juicy dividend
Let’s start this list of superb buys to start September with one of Canada’s big banks: Toronto-Dominion Bank (TSX: TD)(NYSE: TD). And while there are plenty of reasons to consider adding TD to your portfolio, the top two on investors’ minds should be growth and income.
As a growth stock, TD has invested heavily into establishing a massive branch network in the United States. That network is now larger than TD’s Canadian branch network. Additionally. TD continues to expand, growing further into the U.S. market. An example of this is the recent acquisition of First Horizon, which, on completion, will expand TD into multiple new U.S. state markets.
Turning to income, TD offers a quarterly dividend to investors. The bank has paid out that dividend without fail for well over a century, too. During the pandemic, a moratorium on raising dividends was imposed on banks. Fortunately, once that ban was lifted, TD announced a 12.7% increase in its dividend.
The yield on TD’s juicy dividend currently works out to an appetizing 4.15%, making it one of the better-paying stocks to start September with.
If you want stability and a high-yield dividend, look here
Apart from the big banks, another area that new investors should seriously consider as a buying option to start September with is Canada’s big telecoms. Specifically, I’m referring to BCE (TSX: BCE)(NYSE: BCE).
BCE boasts a very juicy quarterly dividend that works out to a yield of 5.65%. This makes BCE one of the better-paying returns on the market. Fortunately, prospective investors can also take solace in knowing that BCE is also one of the most defensive stocks on the market.
BCE’s massive infrastructure represents one of the largest moats anywhere. Additionally, BCE’s coast-to-coast national presence allows it to offer subscription services to Canadians across the country. Finally, the necessity of a wireless 5G connection and fast, reliable home internet connection has only increased significantly since the pandemic started.
To top it all off, BCE is also diversified thanks to its massive media segment. The dozens of radio and TV stations provide a complementary revenue stream for the company.
In short, BCE is a great long-term holding for any well-diversified portfolio, and investors should start September by adding to that position.
Renewable energy is growing at a fast pace
Renewable energy stocks are huge. And unlike their fossil fuel-burning peers, they aren’t straddled with massive transitional costs to become renewable. Instead, renewable energy providers can focus on investing in growth and, in the case of TransAlta Renewables (TSX: RNW), offering juicy income to investors.
TransAlta has a growing portfolio of over 40 facilities located in Canada, the U.S., and Australia. Those facilities include a variety of renewable technologies, such as solar, wind, hydro, and gas.
Keep in mind that TransAlta follows the same business model that traditional utilities adhere to. In other words, it generates a stable recurring revenue stream that is backed by very long-term regulated contracts.
That stability allows TransAlta to invest in growth and pay out a handsome income. Additionally, unlike many of its peers, that income is paid out on a monthly cadence. By way of example, given the current yield of 5.38%, a $40,000 investment will earn a monthly income of $179.
Start September the right way with one or all these stocks
No investment is without risk, including the stocks mentioned above. Fortunately, the above three stocks all boast solid business models with significant long-term growth potential.
They also all provide investors with juicy dividends, which is one final long-term advantage.
Long-term investors not ready to draw on that income just yet can and should reinvest it until needed. This will let you nest egg and future income grow significantly.
In short, whether one or all of the above, buy them, hold them, and, when it’s time, enjoy that juicy income.
