Canadian investors who are just starting out with a self-directed portfolio may feel intimidated. However, readers who choose to take this plunge will find that this path is much more rewarding than a plug-and-play financial plan that you may receive from a standard advisor. That said, beginners should take care as they look to take off the training wheels on the regular market. Today, I want to look at five Canadian stocks that beginners can depend on for the long term. Let’s jump in.
Beginners should target this future Dividend King in June 2023
Fortis (TSX:FTS) is a St. John’s-based utility holding company. Shares of this Canadian stock have dropped 8% month over month as of early afternoon trading on June 15. The stock is still up 1.8% in the year-to-date period.
In the first quarter of fiscal 2023, this company delivered adjusted net earnings per share (EPS) of $0.91 — up from $0.78 in the first quarter of fiscal 2022. Fortis has committed to an aggressive five-year capital plan of $22.3 billion. This aims to significantly grow its rate base and support dividend growth through to the late 2020s.
This Canadian stock has achieved 49 straight years of dividend growth. It offers a quarterly dividend of $0.565 per share. That represents a 4% yield. Beginners can trust this future Dividend King, which also boasts a solid price-to-earning (P/E) ratio of 19.
Don’t get too down on this top Canadian stock
Historically, Canadian bank stocks have been a steady long-term hold for beginners and veterans alike. The country’s top banks are proven profit machines that have proven resilient in the face of economic turmoil in the past. TD Bank (TSX:TD) is the second-largest financial institution in Canada, right behind Royal Bank of Canada.
The bank delivered adjusted net income of $7.90 billion, or $4.17 per diluted share in the first half of fiscal 2023 — up from $7.54 billion, or $4.09 per diluted share in the prior year. Its shares possess an attractive P/E ratio of 10. Moreover, it offers a quarterly dividend of $0.96 per share, which represents a 4.7% yield.
Here’s a Canadian stock beginners can depend on for decades
Suncor Energy (TSX:SU) is one of the largest integrated energy stocks in Canada. Its shares have climbed 2.5% over the past month. However, the stock is still down 2.6% so far in 2023.
In Q1 2023, Suncor saw adjusted operating earnings take a hit as oil and gas prices softened in the first half of this year. Shares of this Canadian stock possess a very favourable P/E ratio of 6.7. Meanwhile, it offers a quarterly dividend of $0.52 per share, representing a strong 5.1% yield.
This super defensive stock has been a killer performer since the Great Recession
Dollarama (TSX:DOL) is a top defensive Canadian stock that a beginner investor might want to snatch up in this environment. This is the top dollar store retailer in Canada. Indeed, dollar stores experienced a renaissance after the Great Recession, as it developed beyond a niche market. Shares of Dollarama have climbed 8.2% so far in 2023.
This company released its first-quarter fiscal 2023 earnings on June 7. Dollarama posted comparable store sales growth of 17% and diluted net earnings-per-share growth of 28%.
One more top Canadian stock that beginners can trust
Canadian Natural Resources (TSX:CNQ) is the fifth and final Canadian stock I’d suggest beginners target in the middle of June 2023. This Calgary-based company is engaged in the acquisition, exploration, development, production, marketing, and sale of crude oil, natural gas, and natural gas liquids. Its shares have climbed 2.9% in the year-to-date period.
In the first quarter of fiscal 2023, this company missed its first-quarter profit due to the same issue with softening oil prices. However, international caps on production bring hope for Canadian producers in the second half of this year. This Canadian stock still possesses an attractive P/E ratio of 8.6 and a quarterly dividend of $0.90 per share. That represents a very solid 4.9% yield.