If you’re new to the stock market, putting money into different stocks could seem daunting. In fact, just looking for the right stocks to hold in your portfolio might even be overwhelming. Fortunately, you don’t need a lot of money to get started. In addition, at the Motley Fool, we try to help everyone — including new investors — make the most educated decisions about the stock market. In essence, we try to make your journey to financial independence a little bit easier.
Here are five stocks you can confidently invest in right now.
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If you’re interested in a dividend-growth stock
As a new investor, I would suggest sticking with dividend stocks (although I’ll get into other options later on). That’s because dividend stocks tend to be less volatile than growth stocks. In addition, these stocks will pay shareholders a dividend, which is a portion of the company’s earnings. That’s an easy incentive for investors to continue buying shares again and again.
Fortis (TSX: FTS) is a great dividend stock you could buy today. This company is known for its dividend-growth streak. At 49 years, it’s the second-longest active streak of its kind in Canada. Fortis has already announced its plans to continue growing its dividend through to 2027.
Are you looking for a stock with a long history of dividend payments?
Unfortunately, not all stocks can grow their dividends year after year. However, that doesn’t mean some stocks are worse. In fact, some dividend stocks have been distributing portions of their earnings for nearly two centuries. Take Bank of Nova Scotia (TSX: BNS), for example. This company first paid shareholders a dividend in 1833. Since then, it has never missed a dividend distribution. That represents 190 consecutive years of dividends! If you’re looking for reliability, Bank of Nova Scotia may be a stock for you.
Here’s a stock that could interest dividend and growth investors alike
Some dividend stocks offer the best of both worlds (a bit of stock appreciation alongside dividend distributions). Brookfield Renewable (TSX: BEP.UN) is a stock like this. For those who aren’t familiar, this is one of the largest players in the renewable utilities space. The company operates a portfolio with a generation capacity of 32 gigawatts. Since its inception, Brookfield Renewable stock has generated an annualized return of 16%. In addition, this company has grown its dividend for 11 years at a rate of 6%.
A blue-chip growth stock for your portfolio
If you want to lean more towards the growth side of things, you can look at blue-chip growth stocks. These are companies that are still in their growth stage but are a bit more established. Shopify (TSX: SHOP) would be a good example. This company is listed among the TSX 60, which is a list of 60 leading Canadian companies in important industries. However, despite being a leading company within the nation, it’s clear that Shopify still has a lot of room to grow. I really think this is a generational stock.
A higher-risk stock for those with a longer investment horizon
Finally, if you want to swing for the fences and hope to hit a home run, then consider a stock that’s closer to its nativity. WELL Health Technologies (TSX: WELL) comes to mind. Yes, this company has grown a lot in recent years, expanding into the U.S., for example. However, the telehealth industry is still largely unproven and could still massively increase its global penetration. I believe WELL Health could be a major player in a few years.
