Investing in the stock market could be one of the greatest decisions you could ever make. In fact, many everyday people have been able to make their fortune through the stock market. However, it’s very important that you choose the right companies to invest in. In addition, you should be looking for companies that could continue to grow in your portfolio for years to come. In this article, I’ll discuss two TSX stocks you should consider buying this month and one to avoid.
Definitely buy this stock in September
If there’s one stock that I think investors should always be buying, it’s Fortis (TSX:FTS). This company provides regulated gas and electric utilities to more than three million customers. It serves areas in Canada, the United States, and the Caribbean.
Fortis is somewhat of a legendary stock in Canada. It’s well known among investors for its ability to raise its dividend distribution each year. In fact, at 49 years, Fortis maintains the second-longest active dividend-growth streak in Canada. The company has also already announced its plans to continue raising its dividend through to 2027 at a rate of 4-6%. That, in addition to its low-volatility stock, should make this a very attractive stock for investors.
Another stock worth buying this month
If you’re interested in another solid stock to add to your portfolio today, then take a look at Canadian National Railway (TSX:CNR). This company operates one of the largest railway networks in North America — and the largest in Canada. All considered, Canadian National operates about 33,000 kilometres of track.
Like Fortis, Canadian National is a very solid dividend stock. This company has managed to increase its dividend distribution in each of the past 26 years. Despite all those years of dividend growth, Canadian National maintains a payout ratio of about 39%. That suggests that the company could continue to comfortably raise its dividend over the coming years. Over the past five years, this stock has gained about 38%.
I don’t think this stock should be in your portfolio
On the flip side of things, I still don’t think investors should bother investing in Cineplex (TSX:CGX). This is a massive movie theatre company in Canada. However, with the state of movie theatres today, I don’t think it’s an attractive investment.
Many investors chose Cineplex as a bounce-back stock during the COVID-19 pandemic. However, it hasn’t shown any ability to do so since. In fact, over the past five years, Cineplex stock has only lost value. It has dropped 76% over that period. With revenue continuing to come in much lower than pre-pandemic levels, I’ve lost faith in companies like this. In addition, streaming services are only becoming more popular among consumers, making it even tougher for companies like Cineplex.
