Finding that right mix of stocks can be a frustrating ask for some investors, particularly those that are newer to investing. Fortunately, the market is full of great long-term options to start building your wealth today!
Start with a solid, defensive pick!
Every well-diversified portfolio should have one or more defensive stocks that can weather a volatile market. Utilities are great options to consider that can provide that defensive appeal.
That appeal comes thanks to the stable business model that utilities adhere to. In short, utilities generate a stable revenue stream backed by long-term regulated contracts. And that stability translates into a solid defensive pick that also pays out a juicy dividend.
So then, what utility should investors consider?
The utility to buy right now to start building your wealth for the future is Fortis (TSX:FTS). Fortis is one of the largest utilities on the continent. The company boasts 10 operation regions with facilities sprinkled across Canada, the U.S., and the Caribbean.
If that’s not enough, the current quarterly dividend carries a juicy 3.79% yield and is backed by an incredible 49 consecutive years of annual increases.
In other words, this is one stock to buy today and hold for decades.
Next, bank on some growth and income
It would be nearly impossible to note several great investments to start building your wealth without mentioning at least one of Canada’s big banks. The bank to consider is Bank of Montreal (TSX:BMO).
Considering the volatility in the market right now, some investors may be questioning whether buying a bank stock is the best option right now. Fortunately, Canada’s big banks have plenty to offer investors, even during volatile times.
In fact, Canada’s banks have historically fared better than their U.S.-based peers during periods of volatility, emerging much stronger.
BMO offers investors a stable revenue stream backed by a mature domestic market at home. Additionally, the bank also has a unique growth opportunity thanks to its expansion into the U.S. market. BMO completed an acquisition for California-based Bank of the West earlier this year.
Finally, BMO offers a juicy dividend that has been paid out without fail for nearly two centuries. Currently, that yield works out to an appetizing 4.99% making BMO one of the better-paying options on the market.
How about some long-term growth?
Both Fortis and BMO are great options with defensive appeal that also provide a juicy dividend. Let’s now take a moment to mention a growth stock to start building your wealth over the long term.
Shopify (TSX:SHOP) was one of the best-performing stocks of the past several years when the pandemic hit. The shift from in-person retail to e-commerce put Shopify’s stock into overdrive, driving it momentarily to new highs during the height of the pandemic.
Unfortunately, as retailers began to reopen their doors, an increasing amount of business shifted back to traditional in-person commerce. This, factored with the impact of rising inflation and interest rates, led to the stock to dropping nearly 40% over the trailing two-year period.
That led Shopify, like many other businesses, to streamline costs and focus on its core offerings with the ultimate goal of driving up profitability. In the case of Shopify, this started with a hike to its pricing model earlier this year. Note that this was the first such increase in over a decade.
Following that increase, Shopify announced this week that it’s dropping the bulk of its logistics business (which was always seen as a bolt-on to its core offering). The company is also trimming approximately 20% of its workforce.
As of the time of writing, the stock has surged 25% this week.
Prospective long-term investors should keep in mind that the stock is still down over its pandemic highs and only just hit its pre-pandemic levels.
In other words, this is a long-term buy-and-hold growth pick to start building your wealth now.
Time to start building your wealth
No stock is without risk, and that includes the trio of stocks mentioned above. Fortunately, Fortis, CIBC, Shopify all boast significant long-term potential for income- and growth-seeking investors alike.
In my opinion, one or all these stocks should be part of any well-diversified portfolio.