New Investors: Start September With These 2 Top Dividend Gems

Beginner investors might want to consider adding these two dividend stocks to their portfolios for stability and long-term growth.

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Are you new to investing? Stock market investing might seem intimidating amid all the market volatility this year. Uncertain market environments are a part of the deal, because stock markets tend to be cyclical in nature. The volatility will likely make way for a period of significant growth once things settle down.

Stock market investing is not a short-term game. Becoming wealthy as an investor requires having a long investment horizon. It is better to focus on building a long-term portfolio that can provide substantial and sustained wealth growth. The TSX might seem like a scary place to invest in right now. Fortunately, it boasts plenty of options that you can consider great stocks for beginners.

Today, I will discuss two top dividend stocks that could be ideal assets to begin building your long-term investment portfolio.


Fortis (TSX:FTS)(NYSE:FTS) is a $28.10 billion market capitalization utility holdings company headquartered in Newfoundland and Labrador. Fortis owns and operates several electricity and natural gas utility businesses across Canada, the U.S., the Caribbean, and Central America. Serving an estimated 3.4 million customers, Fortis is a staple presence in many investor portfolios.

Fortis generates most of its revenue through rate-regulated and long-term contracted assets. It means the company’s revenues are predictable and virtually guaranteed. Its solid business model allows the company’s management to fund its capital programs and grow its shareholder dividends comfortably.

Fortis is a Canadian Dividend Aristocrat with a 48-year dividend-growth streak. It looks well positioned to continue growing its payouts for several years. As of this writing, it trades for $58.34 per share and boasts a 3.67% dividend yield.

TransAlta Renewables

The renewable energy industry is becoming increasingly popular, as the world focuses on transitioning to cleaner and greener energy. Businesses like TransAlta Renewables (TSX:RNW) will eventually replace their peers that rely on burning fossil fuels to provide energy. Investing in renewable energy stocks can set you up for substantial long-term wealth growth through capital gains.

Since renewable energy providers don’t have to contend with oil prices or natural gas costs, these businesses can focus on investing in growth and offering their investors juicy dividend payouts. TransAlta has a growing portfolio of renewable energy assets diversified worldwide.

It generates stable and recurring revenue. As of this writing, TransAlta Renewables stock trades for $17.29 per share and boasts a juicy 5.44% dividend yield.

Foolish takeaway

Remember that stock market investing is inherently risky. Even the most defensive stocks are prone to the impact of broader market volatility. Fortunately, Fortis and TransAlta Renewables boast solid business models that can generate stable cash flows and deliver solid long-term growth.

Market downturns might cause their share prices to decline, but you can continue generating passive income through reliable shareholder dividends.

Ideally, you should consider reinvesting the shareholder dividends to purchase more shares, unlock the power of compounding, and accelerate wealth growth. Creating a well-balanced portfolio is necessary. Fortis stock and TransAlta Renewables stock could be the perfect additions to your beginner portfolio to set strong foundations for it.

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.

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