Canadian investors who are just starting out with a self-managed portfolio should follow some golden rules early on. First, a beginner should seek to create a diversified portfolio to protect themselves from market volatility. After that, an investor just starting out must commit themselves to the long-term process.
Patience is one of the most crucial qualities for successful investors. When you craft a plan, do the research, and pick your stocks, you must have the nerve to stick with that plan.
Today, I want to zero in on four TSX stocks that are perfect for beginners. These equities offer a mix of steady income, high dividends, and growth potential. Let’s jump in.
Beginners can trust this Dividend Aristocrat for decades to come
Enbridge (TSX:ENB) is a Calgary-based energy infrastructure giant. Shares of this TSX stock have dipped 2.1% month over month as of close on Friday, July 28. The stock is down 9.6% so far in 2023.
Investors can expect to see Enbridge’s second batch of fiscal 2023 earnings before markets open on August 4. In the first quarter (Q1) of fiscal 2023, this company reported adjusted earnings of $1.7 billion, or $0.85 per common share, which was nearly equal to its earnings output in the previous year. EBITDA stands for earnings before interest, taxes, depreciation, and amortization; this metric aims to give a clearer picture of a company’s profitability. In Q1, Enbridge posted adjusted EBITDA of $4.5 billion — up from $4.1 billion in Q1 2022.
Beginners can count on this company for many years to come. Enbridge boasts a massive product pipeline. The stock last paid out a quarterly dividend of $0.887 per share. That represents a very tasty 7.3% yield. It has delivered over 25 straight years of dividend growth, which makes Enbridge a Dividend Aristocrat.
Here’s a TSX stock I’m stashing for the long term
Park Lawn (TSX:PLC) is the second TSX stock I’d suggest for beginners as we look to August 2023. This Toronto-based company owns and operates cemeteries, crematoriums, and funeral homes in Canada and the United States. Its shares have dropped 4.1% month over month as of close on July 28. The stock has now plunged 11% in the year-to-date period.
The company is set to release its second batch of fiscal 2023 results before markets open on Friday, August 11. In Q1, Park Lawn posted revenue growth of 4.3% to $86.7 million. Meanwhile, adjusted EBITDA slipped 4.1% to $20.5 million. Park Lawn has taken a hit in fiscal 2023 as the mortality rate has improved to normal rates following the worst of the COVID-19 pandemic. Despite that, Park Lawn is still geared up for strong long-term growth.
This TSX stock last had a solid price-to-earnings (P/E) ratio of 29. Moreover, it offers a quarterly distribution of $0.114 per share, which represents a modest 1.9% yield.
Another top dividend stock that is super reliable
Telus (TSX:T) is the second Dividend Aristocrat I’d suggest for beginners in the beginning of August. This Vancouver-based company provides a range of telecommunications and information technology services in Canada. Shares of this TSX stock slipped 8.3% over the past month. The stock has plunged 10% in 2023.
In Q1 2023, Telus delivered operating revenue growth of 15% to $4.92 billion. Meanwhile, adjusted EBITDA increased 10% year over year to $1.77 billion. This TSX stock currently possesses a rock-solid P/E ratio of 23. Moreover, Telus offers a quarterly dividend of $0.364 per share, representing a very strong 6.1% yield.
One more TSX stock that should make beginners smile
goeasy (TSX:GSY) is the fourth and final TSX stock I’d recommend for beginners in August. This Mississauga-based company provides non-prime leasing and lending services under the easyhome, easyfinancial, and LendCare brands to consumers across Canada. Its shares have climbed 18% so far in 2023. That has pushed the stock into positive territory in the year-over-year period.
If beginners buy goeasy, they will be snatching up an explosive TSX stock that is also a Dividend Aristocrat. It has delivered nine straight years of dividend growth. Moreover, the company is forecasting strong loans and revenue growth through fiscal 2025. goeasy currently possesses an attractive P/E ratio of 12. It offers a quarterly dividend of $0.96. That represents a 3% yield.
