It’s very important that investors diversify their portfolios. This is because diversification could give your portfolio some added stability should a certain region or sector become negatively affected by rough economic times. When it comes to holding domestic stocks, Canadians are lucky, because there are a tremendous amount of quality companies across many sectors. In this article, I’ll discuss my three top TSX portfolio holdings going into April 2023.
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My largest TSX holding
This may be one of my newest TSX holdings, but I certainly wasted no time in making it my largest position. Constellation Software (TSX: CSU) was trading at a massive discount last year, and I took that opportunity to scoop up a lot of shares. In the short term, it seems like the move paid off. Year to date, Constellation Software stock has gained nearly 14%.
However, as Foolish investors, we should be focused on the long term. In that case, I’m confident that the decision to make this stock into my largest TSX holding will continue to pay off. Constellation Software has managed to find a way to perfect its acquisition strategy and deliver outsized growth to shareholders. With its founder Mark Leonard continuing to lead this company, I believe Constellation Software could continue to outperform the broader market over the coming years.
One of my favourite stocks in the world
Although Shopify (TSX: SHOP) is no longer my largest TSX holding, it’s still one of my favourite stocks in my portfolio. This company continues to be a leader in the global e-commerce industry. What interests me the most about Shopify is its amazing enterprise partnership network. By giving its merchants access to the likes of Meta Platforms (NASDAQ: META), Spotify (NYSE: SPOT), Walmart (NYSE:WMT), YouTube, and more, consumers have every opportunity to spend money on one of Shopify’s stores.
Year to date, Shopify stock has soared gaining nearly 25%. Unfortunately, that still places the stock about 72% lower than its all-time highs. With Shopify’s revenue and the global e-commerce industry continuing to grow at a fast pace, I’m confident that Shopify’s best days aren’t behind it. However, I should stress that, until the economy recovers to a stable state, this stock should be left for those who have a larger appetite for risk.
An excellent dividend stock
It shouldn’t surprise Foolish investors that Bank of Nova Scotia (TSX: BNS) is the third-largest TSX holding in my portfolio, as it’s one of my favourite Canadian companies to cover on The Motley Fool. Bank of Nova Scotia is one of the Big Five banks, which speaks volumes about its market dominance. Of that group, Bank of Nova Scotia stands out for its international diversification.
However, what truly interests me in this stock is its outstanding dividend. Bank of Nova Scotia has paid its shareholders a dividend for nearly 190 consecutive years. Today, Bank of Nova Scotia stock offers investors a forward dividend yield of 6.23%.
