New to Investing? 3 Top Stocks Every Canadian Should Own

Are you a new investor hoping to start a stock portfolio? Here are three top stocks every Canadian should own.

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Starting on your investment journey can be intimidating. Fortunately, there are many resources, like the Motley Fool, that can help new investors get started on the right track. In this article, I’ll discuss three top stocks that every Canadian should own. All three of these companies have businesses that are easy to understand. They are also leaders within their respective industries.

Without further ado, here are three stocks for your new portfolio.

Start with this top dividend stock

Fortis (TSX:FTS)(NYSE:FTS) is the first stock that I believe all Canadians should own. This company provides regulated gas and electric utilities to more than three million customers across Canada, the United States, and the Caribbean. Because of the nature of its business, Fortis tends to receive income on a very stable basis. That reliable stream of revenue gives Fortis the ability to plan for dividend distributions and increases far into the future.

Speaking of its dividend, Fortis has managed to increase its dividend in each of the past 48 years. That gives the company the second-longest active dividend-growth streak in Canada. Fortis projects that it will continue to raise its dividend at a compound annual growth rate of 6% through to at least 2025. If you’re starting a new portfolio, Fortis is a must-have.

Buy the Canadian banks

I believe that the Canadian banks are must-own stocks in any investor’s portfolio — new and experienced alike. This is because the Canadian banks play such an important role in our economy. If you look at the largest companies by market cap, you’ll see that four of the eight largest companies are banks. What’s more impressive is that the Big Five Canadian banks have such an imposing lead on their competitors that it may be impossible for that group to be surpassed at this point.

Of the Big Five, my top pick is Bank of Nova Scotia (TSX:BNS)(NYSE:BNS). Founded in 1832, this is Canada’s third-largest bank in terms of assets under management, revenue, and market cap. One of the most impressive aspects about Bank of Nova Scotia stock is its dividend. This company has been paying shareholders a portion of its earnings in each of the past 189 years. That means the company has been able to intelligently navigate massive events like the Great Recession and the COVID-19 pandemic.

This stock has great growth potential

Finally, investors should look for stocks that could provide a boost in terms of growth. As a new investor, I’d suggest keeping this portion of your portfolio smaller, because growth stocks can be very volatile at times. By sticking to an established company, investors could stay on the safer side of growth investing. With that said, Shopify (TSX:SHOP)(NYSE:SHOP) is a stock that every Canadian should own today.

This company is a leader within the global e-commerce industry. It provides merchants of all sizes with a platform and many of the tools necessary to operate online stores. What separates Shopify from companies with a similar business is its formidable enterprise partnership network. By establishing partnerships with the likes of Meta Platforms, Walmart, YouTube, Spotify, and many more, Shopify gives its merchants the opportunity to be in front of as many consumers as possible.

Shopify stock is currently trading about 71% lower than where it started the year. However, I believe this is an excellent buying opportunity.

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.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Fool contributor Jed Lloren has positions in BANK OF NOVA SCOTIA, Shopify, and Spotify Technology. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends BANK OF NOVA SCOTIA, FORTIS INC, Meta Platforms, Inc., Spotify Technology, and Walmart Inc.

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