Finding the right mix of stocks to buy for your portfolio can take considerable time and effort, particularly for new investors. And while the market does provide ample investment options to consider, not all investors have thousands to allocate across several stocks. This is where the following best stocks to buy come into play.
And best of all, you don’t need thousands of dollars to start. Investors can look to these two best stocks to buy now with just $1,000.
Buy now, hold forever
I would be remiss if I didn’t mention at least one of Canada’s big banks as one of the best stocks to buy now. There are plenty of great reasons to buy the big banks. That list includes the solid income they provide, stable revenue they generate, and stellar growth they can offer.
And it’s that growth that makes Bank of Montreal (TSX: BMO) the bank for your portfolio.
So then, what makes BMO a great investment? Here are three key points.
First, BMO operates a stable domestic segment that generates a significant portion of its revenue. In the most recent quarter, that worked out to $917 million. The appeal of that stable Canadian segment only becomes more attractive when we talk about growth.
That growth, which is the second point to consider stems from BMO’s growing U.S. presence. Thanks to its most recent acquisition, which was completed earlier this month, BMO is one of the largest banks in the U.S. market. That sizable network includes a presence in 32 states, and billions in loans and deposits.
In short, the long-term growth of BMO is off the scale. But one final point makes this one of the best stocks to buy now – dividends. BMO has been paying out dividends longer than any other stock in Canada.
As of the time of writing, the yield on BMO’s dividend is an appetizing 4.37%. This means that new investors with $1,000 to invest can get just over 7 shares of BMO. That’s not enough to retire on, but it can kickstart a long-term portfolio with additional investments over time.
Here’s another top stock to consider
Banks aren’t the only great investment to consider. Canada’s telecoms can also provide a source of long-term income, and you won’t need thousands to start either.
And the telecom for investors to consider right now is BCE (TSX: BCE).
BCE is one of the largest telecoms in Canada. The telecom boasts a sizable (if not enviable) network that blankets the country with coverage for its subscription services.
This provides a defensive moat for investors and one that isn’t disappearing anytime soon. If anything, that moat is only increasing in size.
Following the pandemic, there are now more people working and studying in a permanent remote capacity. This has made the need for a fast and stable internet connection one of necessity.
That same defensive appeal applies to the wireless segment, which continues to see strong growth.
The end result is a stable, if not growing source of revenue. That revenue also means that BCE can continue to provide investors with a juicy quarterly dividend.
As of the time of writing, BCE’s dividend works out to a yield of 6.35%, handily making it one of the better-paying options on the market.
Investors looking to drop $1,000 in BCE will get 16 shares of the telecom. And like BMO, investors looking to the long term can reinvest those dividends until needed.
The best stocks to buy come in all forms
No investment is without risk, and that certainly applies to the two stocks mentioned above. Fortunately, among the best stocks to buy mentioned above, all operate in unique segments that boast some defensive appeal.
They also offer significant income potential, which not only makes them the best stocks to buy right now but also great buy-and-forget candidates for any well-diversified portfolio.
