In our modern, fast-paced world, jumping on the next hype train has become commonplace, and investment is no exception. From other assets to stocks, investors often flock to opportunities they believe to be the next big thing, but more often than not, it leads to a financial disaster. Non-fungible tokens might be a great example of this phenomenon.
So, if you rather look beyond the glamour and stick to time-tested, reliable stocks instead of chasing every new overhyped bull market, two stocks should be on your radar.
A utility company
If you are looking for a trustworthy stock, especially for dividends, Fortis (TSX:FTS) is easily among the most beloved picks. The utility company has an impressive presence and dominates several markets in electrical and natural gas utilities.
It has about 3.4 million customers, and 99% of its utility assets are regulated, making its revenues even more secure compared to unregulated utility companies that are more vulnerable to market dynamics.
The safety of the Fortis stock stems primarily from its business model. As a utility company, its revenue stream is tied to millions of customers paying their utility bills on time, an expense that’s considered necessary in almost all households. The company is also investing in renewables.
As a dividend stock, Fortis is the second-oldest Aristocrat in Canada and is about to join the ranks of the Dividend Kings in the U.S., a small group of dividend payers that have grown their payouts for over 50 consecutive years. It also offers modest capital-appreciation potential, but the dividends are the primary reason most investors flock to this company.
A railroad company
Canadian National Railway (TSX:CNR) is the larger of the two railway giants in Canada (by market cap) and a strong business with hundred years of history backing up its performance. The railroad giant started out in 1919 as a local company that now connects three major North American ports through its 20,000 miles of railroad network.
This makes it an ideal transportation partner for a wide array of businesses in Canada that wish to transport materials/goods to and from the major ports at affordable prices. The company has augmented its value as a major supply chain player by growing its trucking fleet.
While Canadian National Railway is a healthy dividend stock with a decent dividend history and a modest 1.9% yield, it’s primarily coveted for its capital-appreciation potential. The stock has risen by about 200% in the last decade, and if you add in the dividends, the overall returns become even more attractive. Also, it’s a decent pick from an ESG (environmental, social, and governance) investing perspective, thanks to its good ESG score.
Foolish takeaway
The two dividend all-stars offer their investors a healthy mix of dividend and growth potential. Thanks to their consistent long-term performance and dividend sustainability and growth, they might be a more pragmatic purchase over buzzy growth stocks that may come with an unhealthy amount of uncertainty and risk.
