Investing in Canada: The Best Stocks for Beginner Investors to Buy Now!

It’s not hard to find the best stocks for beginner investors. These must-have stocks are great for new and seasoned investors.

| More on:
Double exposure of a businessman and stairs - Business Success Concept

Image source: Getty Images

Beginner investors often struggle with determining the best stocks to start building a portfolio. Fortunately, the market provides us with plenty of options to consider buying.

Here’s a short list of some of the best stocks for beginner investors to consider buying right now.

Best stocks for beginner investors: Start with a bank

It would be impossible to compile a list of the best stocks for beginner investors without mentioning at least one of Canada’s big banks.

And the bank to consider investing in is Bank of Montreal (TSX:BMO). BMO is not the largest of the big banks, but it has been paying out dividends without fail longer than any other company in Canada.

As of the time of writing, BMO offers a quarterly yield that works out to a juicy 4.85% yield. That’s not all; BMO has provided investors with an annual bump to that dividend for over a decade, with the only gap coming during the pandemic.

Turning to growth, earlier this year, BMO completed the acquisition of California-based Bank of the West. The deal has propelled BMO into position as the eighth-largest lender in the United States. More importantly, the deal has opened up several new state markets to BMO, adding 1.8 million new customers and billions in deposits.

In short, BMO is one of the must-have best stocks for beginner investors to buy today and hold for decades.

Buy today and hold for decades

Another great option for beginner investors to buy today is one of Canada’s big telecoms. Telecoms are great, defensive picks. They generate stable revenue streams, offer a growing dividend, and provide increasingly necessary services.

And BCE (TSX:BCE) is the telecom that beginner investors should consider right now. BCE provides subscription-based services to customers across the country. Since the pandemic began, both the mobile and internet segments have seen incredible growth, becoming a necessity for remote workers and students.

By way of example, in the most recent quarter, BCE reported 43,289 net new mobile postpaid subscribers. This reflects a whopping 26.5% increase over the prior period. BCE’s retail internet also saw an increase in the period, with net activations coming in 4.8% better than the prior period.

Like BMO, BCE has a long-established history of providing handsome dividends to investors. Specifically, BCE has provided dividends to investors for well over a century. Today that quarterly dividend works out to a juicy 6.10%, making it the higher-paying option across its big telecom peers.

To summarize, BCE is a great long-term defensive pick that can provide growth and income-producing potential for decades. This fact alone makes it one of the must-have stocks for beginner investors with long timelines.

And like much of the market, BCE is down just over 6% year to date, making it a good time to buy.

Power up your portfolio with this energy infrastructure titan

Most investors recognize Enbridge (TSX:ENB) and its impressive pipeline network. In fact, Enbridge’s pipeline network is the largest and most complex pipeline system on the planet.

Enbridge hauls massive amounts of crude and gas along that pipeline network. In terms of sheer volume, Enbridge hauls about one-third of North American-produced crude and one-fifth of the natural gas needs of the U.S. market.

In other words, Enbridge holds massive defensive appeal to investors. And while that pipeline network accounts for the bulk of Enbridge’s revenue, it isn’t the only revenue stream that the energy infrastructure behemoth boasts.

Enbridge also operates a growing renewable energy network. That renewable portfolio includes over 40 facilities located across North America and Europe. Over the past 20 years, Enbridge has invested over $8 billion into that growing segment. Again, that’s not all. Enbridge also operates one of the largest utilities on the continent.

Turning to income, Enbridge boasts one of the best dividends on the market. The current quarterly dividend boasts a juicy yield of 7.09%, handily making it one of the best-paying options on the market.

Despite that high-paying yield, Enbridge continues to provide annual bumps to that dividend. In fact, Enbridge has provided consecutive annual increases to its dividend for nearly three decades.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Demetris Afxentiou has positions in Enbridge. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Dividend Stocks

Enbridge Stock: This Dividend Aristocrat Looks Like a Steal in 2023

Here are some key factors that make ENB a great Canadian dividend stock to buy on the dip in 2023.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

U.S. Debt Ceiling: Is It Safe to Invest Right Now?

The U.S. debt ceiling is in the headlines again. You can play it safe by investing long term in wonderful…

Read more »

analyze data
Dividend Stocks

How to Invest $20,000 to Make Ultra-Safe Passive Income

Got $20,000 to invest for passive income? These three stocks are perfect for earning ultra-safe passive income for the long…

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

For Passive Income: How to Turn $25,000 Into $158 Per Month

High-yield, monthly dividend stocks trading on the TSX such as Slate Grocery can help you earn a predictable stream of…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

2 Canadian Dividend Stocks to Buy for Consistent Passive Income

These top dividend stocks have raised their distributions annually for more than two decades.

Read more »

Piggy bank next to a financial report
Dividend Stocks

Self-Directed RRSP: 2 Top Dividend Stocks to Buy in June 2023

These top TSX dividend stocks look cheap to buy today and offer attractive dividend yields.

Read more »

Dividend Stocks

Looking for Reliable Retirement Income? Consider These Dividend-paying Stocks

National Bank of Canada and another reliable income stock that could be a perfect fit for your retirement fund this…

Read more »

grow money, wealth build
Dividend Stocks

Are You Looking for High-Yield Investments? 3 TSX Stocks That Offer Excellent Payouts

These dividend stocks all offer solid payouts, as well as yields in the five to six percent range. So get…

Read more »