Are you new to investing? If you have decided to get into stock market investing, you should know it can be one of the best decisions you have ever made. By allocating your money to the right assets, you can take control of your financial future. However, it is very easy for new investors to become distracted by everything that is going on in the market.
As a beginner investor, it is better to keep things simple. Investing in well-established and popular companies can be a great way to lay the foundations of a strong self-directed portfolio. That said, not every popular company is a screaming buy all the time. Today, I will discuss three great Canadian stocks for beginners, with one I prefer more than the others.
Shopify
Shopify Inc. (TSX: SHOP) is a stock many investors are familiar with. The $108.7 billion market capitalization giant in the global e-commerce space was once the largest stock on the TSX by market cap. It offers merchants of all sizes a platform and the tools necessary to operate their online stores, servicing everyone from new entrepreneurs to enterprise-level businesses.
Shopify stock has been battered since the tech sector meltdown. As of this writing, SHOP trades for $84.93 per share, down by over 60% from its November 2021 all-time high. The e-commerce business platform’s performance has been strong, generating US$1.5 billion in revenue in the first quarter of 2023. While macroeconomic factors continue to weigh on it, the tech giant can offer stellar returns if conditions improve.
Bank of Nova Scotia
Bank of Nova Scotia (TSX: BNS) is a mainstay in many self-directed Canadian investment portfolios. The $79.3 billion market capitalization Canadian financial institution stock is the third-largest among the Big Six Canadian banks. Scotiabank stock distinguishes itself from its peers by its international growth focused on emerging regions.
Exposure to the Pacific Alliance countries offers Scotiabank compelling long-term growth opportunities. The bank is a reputable long-term holding for many investors. A stock that has paid its investors a portion of its profits for the last 190 years, BNS can be a solid investment for the long game.
As of this writing, Scotiabank stock trades for $66.56 per share. BNS pays its shareholders at a quarterly schedule at a 6.19% dividend yield.
Brookfield Renewable Partners
Brookfield Renewable Partners (TSX: BEP.UN) is another excellent stock beginners can consider adding to their portfolios. The $11.8 billion market capitalization company is one of the world’s largest players in the renewable energy space. Boasting a renewable energy facility portfolio with a 25-gigawatt (GW) production capacity, it also has several other projects in the pipeline.
When all its facilities under development come online, it renewables asset manager will boast an additional 110 GW of generation capacity, cementing its place as an industry leader in the green energy space. Brookfield Renewable offers strong long-term growth potential due to the nature of the industry it operates in. Additionally, BEP.UN stock can continue providing investors with stable income through its quarterly dividends.
As of this writing, Brookfield Renewable stock trades for $42.62 per share and boasts a juicy 4.24% dividend yield.
Foolish takeaway
Though Shopify stock offers the prospect of near-term wealth growth, it also entails the highest degree of capital risk for your self-directed portfolio. While it is not a stock you should ignore, the global e-commerce giant might not be a good fit for risk-averse investors.
Scotiabank stock can be the perfect fit for risk-averse investors. The bank’s track record also indicates that it can be a strong long-term holding. However, Brookfield Renewables stock is the one I would invest in right now.
The future of the energy industry is green. The top renewable stocks like Brookfield Renewable Partners offer exposure to an industry slated to grow massively in the coming years. Now may be the right time to invest in its shares to future-proof your portfolio.
