Is your portfolio diversified? Finding the right mix of investments that can weather market volatility, provide some growth, and generate income remains a daunting task for new investors. Fortunately, the market gives us plenty of opportunity to confidently add these stocks to your portfolio.
Here are three stocks you can confidently add to your portfolio this month, even if you only have $1,500 to invest.
Banking on growth and income
It would be hard to compile a list of stocks you can confidently add to your portfolio without mentioning at least one of Canada’s big banks. Bank of Nova Scotia (TSX: BNS) isn’t one of the biggest banks but it is one that offers investors a massive opportunity.
Unlike its peers that invested in the US market for international growth, Scotiabank ventured further South into Latin American markets. Specifically, Scotiabank turned to Mexico, Colombia, Peru, and Chile. Those four countries are part of a trade bloc known as the Pacific Alliance that is focused on increasing trade and reducing tariffs.
Scotiabank’s presence in the region has helped to establish it as a trusted name throughout the region and accelerate growth. That being said, those markets have also seen a slower post-pandemic recovery and are now facing the same inflationary challenges that other markets are facing.
As a result, Scotiabank trades at a discount compared to its peers and boasts a massive 6.49% yield right now.
In other words, prospective investors can get a great long-term bank stock and juicy yield at a significant discount.
Here’s a defensive gem that is investing in growth
Telecoms are some of the best long-term defensive investments to include in any portfolio. Rogers Communications (TSX: RCI.B) is one such example that should be on every investor’s radar.
Rogers is one of the largest telecoms in Canada, and it’s fresh off its massive acquisition of another big telecom, Shaw Communications. Given the volatility in the market thanks to rising interest rates, Rogers has, like much of the market, seen a steep drop in its stock price.
In fact, the stock has dropped 10% year to date, making it another great stock to pick up at a discounted rate.
That’s not all. Investors can confidently add Rogers to their portfolio knowing that the company also provides a juicy quarterly dividend. As of the time of writing, the yield on that dividend works out to 3.54%.
Also worth noting is that unlike its big telecom peers, Rogers does not provide a regular annual increase to that dividend. The company uses those funds to reinvest in growth initiatives and pay down debt.
Stock up on groceries, and growth
Another investment that you can confidently add to your portfolio is Metro (TSX: MRU). Metro is one of the largest grocers in Canada with a network of over 900 grocery stores focused in Quebec and Ontario.
The company also boasts a popular pharmacy network through the Jean Coutu brand, which has a network of over 640 stores.
Metro is an everyday stock that boasts both defensive appeal and growth potential. The sheer necessity of what Metro provides makes it a great defensive option, while the company’s expanding network of grocery and pharmacy stores provides a source of growth.
Additionally, prospective investors looking to confidently add Metro to their portfolio should also note that the company provides a quarterly dividend. As of the time of writing, the yield works out to 1.67%. This isn’t the highest yield on the market, but it is well-covered, stable, and growing.
In fact, Metro has provided an annual uptick to that dividend for nearly three decades without fail. That fact alone makes Metro a great stock you can confidently add to your portfolio.
Final thoughts
No investment is without risk and that includes the three stocks above. Fortunately, Scotiabank, Metro, and Rogers all boast some defensive appeal, growth potential, and a source of income generation. In my opinion, one or all of these stocks should be core holdings in any well-diversified portfolio.
