Finding that perfect mix of investments takes time. Fortunately, it doesn’t need to be hard. There are plenty of long-term options on the market right can help both seasoned and new investors alike build out an easy, balanced, four-stock portfolio.
Here’s a look at the stocks to add to your portfolio
Stock #1: The defensive pick
2022 has been a volatile year and the need for adding one or more defensive stocks to your portfolio has never been greater. That’s part of the reason why the first stock in any easy, balanced, four-stock portfolio should be Fortis (TSX:FTS).
Fortis is one of the largest utilities on the continent. The company operates across 10 operating regions that span across Canada, the U.S., and the Caribbean.
Utilities operate one of the most defensive business models on the market, which is based on long-term, regulated contracts that often span a decade or more. The result is a stable and recurring source of revenue, which the company can then use to fund growth and provide a juicy dividend.
Fortis has taken an aggressive stance on growth, which differs from many of its utility peers. As a result, Fortis has grown considerably over the years to the delight of shareholders.
That growth also helps fund Fortis’s quarterly dividend. That dividend currently works out to an appetizing 4.14%. But perhaps best of all is the fact that Fortis has provided annual bumps to that dividend for an incredible 49 consecutive years.
Stock #2: The balanced bank
Canada’s big banks are among the best long-term options on the market. They offer solid international growth, a handsome dividend, and a reliable source of revenue backed by a strong domestic segment.
The big bank to consider today is Bank of Montreal (TSX:BMO). BMO is the oldest dividend-paying company in Canada, with nearly two centuries of dividends paid out without fail. Today, that dividend works out to 4.63%.
In terms of growth, BMO is focused on the U.S. market. BMO’s ongoing acquisition of California-based Bank of the West just screams growth. Once complete, the deal will expose BMO to two dozen states, and add 500 branches to its U.S. network.
Additionally, BMO currently trades at a discount, like much of the market. The current price-to-earnings (P/E) works out to just 6.18, making it an insanely discounted option right now.
Stock #3: Growth comes in all forms
Adding a growth stock or two to your well-diversified portfolio is always a good idea. The growth stock for investors to consider buying right now is Dollarama (TSX:DOL).
Dollarama operates the largest dollar store network in Canada, with a presence in every province. The company also has an international operation with a presence in Latin America under the Dollar City brand. So, what makes Dollarama a good candidate for your easy, balanced, four-stock portfolio?
Dollar stores like Dollarama thrive during market downturns. In fact, unlike most of the market, Dollarama is up 25% year to date. Part of that is thanks to Dollarama’s unique pricing model.
Dollarama prices goods at fixed points up to $4. Many of the lower-priced items are also bundled together under a single price point, providing a greater sense of value to shoppers.
Despite the stellar performance of the stock in 2022, Dollarama remains a great long-term pick.
Stock #4: The telecom
BCE (TSX:BCE) isn’t just one of the largest telecoms in Canada. It’s also the last stock for your easy, balanced, four-stock portfolio.
In addition to offering the usual complement of subscription-based services, BCE also boasts a massive media segment. That segment provides another revenue stream for the company, providing some element of diversification.
Telecoms are incredibly defensive investments, and that defensive appeal has only grown since the pandemic started. There are still many people that work and study in a remote setting, which has elevated the need for a fast and reliable internet connection to one of necessity. That same sense of necessity applies to mobile device connections
The result is a solid revenue stream that helps BCE pay out a solid quarterly dividend, which it has done without fail for over a century. That yield works out to a generous 6.23%, making BCE a great defensive pick with buy-and-forget appeal.
