Whether you are planning your retirement or have a long-term financial goal, picking the right investments from the Canadian stock market can make it possible. You can take several possible approaches to stock market investing.
If you seek rapid growth, the TSX offers plenty of high-risk and high-reward equity securities to consider. For those in it for more secure long-term growth, there are opportunities to play the slow and steady game.
While a conservative approach means losing out on rapid growth, it gives you more certainty. For risk-averse investors with a long investment horizon, it is not a weak approach to stock market investing.
If you are looking for steady stocks that can deliver more reliable long-term wealth growth, there are a couple of Canadian dividend stocks you can add to your self-directed portfolio.
Royal Bank of Canada
Royal Bank of Canada (TSX:RY) is the largest Canadian stock on the TSX in market capitalization. Boasting a $171.53 billion market capitalization, it is also the largest bank in Canada. Serving over 17 million clients worldwide, this multinational giant in the financial services space is a staple in many investment portfolios.
While it has faced harsh circumstances in the past, RBC stock has weathered them all with grace. Having seen multiple financial crises, it has always risen as a beacon of hope for investors over more than a century. To top it off, it is also a reliable dividend-paying stock. As the most valuable company on the TSX, Royal Bank of Canada stock trades for $123.42 per share at the time of this writing.
It has a juicy 4.38% annualized dividend yield that it pays out at a quarterly schedule. This rock-solid, blue-chip stock can be an excellent long-term holding for any investment objective.
Fortis
Fortis (TSX:FTS) is another mainstay for many Canadian investors with self-directed portfolios. The $26.29 billion market capitalization company headquartered in Canada is an international diversified electric and natural gas utility holding company.
The company has customers in Canada, the U.S., Central America, and the Caribbean. It offers utility services in highly rate-regulated markets, allowing it to generate predictable and reliable cash flows.
Serving over 3.4 million customers, 99% of its revenue comes through rate-regulated assets. The reliable revenue made it possible for Fortis to grow shareholder dividends each year for almost 50 years. With the next dividend hike, it will become a Canadian Dividend King. With the demand for natural gas and electric utilities not going away, it can be a safe and comfortable long-term bet for your portfolio.
As of this writing, it trades for $53.88 per share, boasting a 4.19% dividend yield that you can lock into your portfolio right now.
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Foolish takeaway
When it comes to slow and steady growth in the long run, picking blue-chip Canadian stocks is the safest way to go. While not without its risks, a conservative approach offers a lower degree of capital risk than aiming for rapid wealth growth.
Royal Bank of Canada stock and Fortis stock might not offer the flashy, rapid growth many Canadian tech stocks have delivered in recent years. That said, they also offer more consistency and resilience in weak market environments to grow investor portfolios. If this is more along the lines of your mindset when investing, Fortis and RBC stock can be excellent buy-and-hold assets for your self-directed portfolio.
