How diversified is your portfolio? One of the challenges that new investors often struggle with is setting up and maintaining a well-diversified portfolio. Fortunately, it doesn’t need to be hard, and there are plenty of easy TSX stocks for beginners to consider.
Here’s a look at some of those easy TSX stocks to add to your portfolio.
Start with some defence
There are many advantages to adding a defensive stock to your portfolio. This is especially true during times of market volatility, such as what we’ve seen this year.
Defensive stocks are stable investments that are less likely to be impacted by market volatility. An example of this is the necessities that we continue to depend on daily, such as utilities.
And that’s a key reason why Fortis (TSX:FTS) is an easy TSX stock to consider right now. Fortis is one of the largest utilities on the continent. The company has operations in Canada, the U.S., and the Caribbean.
Fortis’s stable utility business provides a recurring revenue stream, which, in turn, is passed on in the form of a juicy quarterly dividend. That dividend currently works out to a yield of 3.79%, making it a decent return from a very defensive and stable stock.
It’s also worth noting that Fortis has provided annual upticks to that dividend for an incredible 49 consecutive years. That fact alone makes Fortis one of the easy TSX stocks on every investor’s shopping list.
Add some income-earning potential
Critics of Fortis will point to the lower yield when compared with other dividend stocks. Fortunately, there’s another juicy dividend to consider buying that still boasts some defensive appeal.
BCE (TSX:BCE) is one of Canada’s big telecoms. In addition to providing its core subscription-based services, BCE also boasts a massive media segment. That segment, which is complementary to its core business, includes dozens of radio and TV stations, blanketing the country in coverage.
Like utilities, telecoms are incredibly defensive investments. In fact, in the period since the pandemic started, the defensive appeal of telecoms has increased significantly.
Turning to income, BCE continues to impress. BCE has been paying out dividends for well over a century without fail and has provided annual upticks for over a decade.
Today, that yield works out to a juicy 6.15%, handily making it one of the better-paying dividends on the market.
Not only is BCE an easy TSX stock to buy this month, but it’s also a buy-and-forget stock.
Finally, bank on some growth
It would be nearly impossible to compile a list of easy TSX stocks for beginners and not mention at least one of Canada’s big banks.
The big banks offer defensive appeal, solid growth options, and a tasty dividend that continues to see upticks. The banks also have a much-better history of recovering from financial downturns over their U.S. peers. But which big bank should investors consider?
That would be Canadian Imperial Bank of Commerce (TSX:CM), and here are a few reasons why.
Unlike its peers, CIBC has a smaller international footprint. As a result, the bank has a larger domestic mortgage book (relative to its peers). In recent months, this has weighed down on the stock, which is trading down 22% over the trailing 12-month period.
Prospective investors should see CIBC as a long-term play. The market will recover, and historically, the big banks have fared extremely well when that recovery does in fact occur. The fact that CIBC trades at such a discount right now should be seen as a huge plus.
That discount also means that CIBC’s dividend yield has swelled. As of the time of writing, CIBC’s yield works out to an impressive 5.96%, making it a must-have for income-seeking investors. Investors should keep in mind that, like its peers, CIBC provides annual generous upticks to that dividend.
Final thoughts on those easy TSX stocks to buy
No investment is without risk, and that includes the trio of easy TSX stocks mentioned above. Fortunately, all three stocks offer defensive appeal, growth, and income-earning potential that should appeal to every investor.
In short, buy them and hold them as part of a longer-term, well-diversified portfolio.