Taking control of your finances and investing in the stock market is, in my opinion, one of the best things you can do for your future. It allows you to take part in one of the greatest methods of wealth creation. However, starting your investing journey can be very daunting, especially if you don’t have many people around you who are familiar with the market. In this article, I’ll discuss four great Canadian stocks that beginners should consider buying in December 2023.
Start with one of the best Canadian stocks
Since its initial public offering, Constellation Software (TSX:CSU) has been a massive winner in the stock market. This stock has gained more than 17,600% since 2006! Over the past year, Constellation Software stock has gained about 53%. So, despite its already massive gains in the stock market over the past decade and a half, Constellation Software shows no signs of slowing down.
For those that are unfamiliar, Constellation Software acquires vertical market software (VMS) companies. For much of its history, Constellation Software has focused on small- and medium-sized VMS businesses. However, over the past two years, it has begun to incorporate the acquisition of more large-sized VMS businesses. Still led by its founder, Mark Leonard, I believe this company will continue to adapt and grow for years to come.
Invest in one of the best dividend stocks around
Moving onto the next stock, I believe beginners should welcome shares of Fortis (TSX:FTS) into their portfolio. This is a massive company, providing regulated gas and electric utilities to more than three million customers across Canada, the United States, and the Caribbean. In 2022, the company reported an annual revenue of $11 billion.
Fortis is well known for its dividend-growth streak. The company has increased its dividend distribution in each of the past 50 years. That gives it the second-longest active dividend-growth streak in the country. Fortis has already announced its plans to continue growing its dividend through to 2028 at a rate of 4% to 6%.
A very recognizable name
New investors should also consider buying shares in Canadian National Railway (TSX:CNR). This is the largest railway company in Canada. With nearly 33,000 km of track, Canadian National Railway can be found operating from British Columbia to Nova Scotia. This company has also expanded into the U.S. and can be seen transporting goods as far south as Louisiana.
Like Fortis, Canadian National Railway is a tremendous dividend distributor. The company has increased its dividend in each of the past 26 years. That makes it one of only 11 TSX-listed companies to currently boast a dividend-growth streak of that length or more. With such a formidable moat in its industry, I believe Canadian National Railway could be a good investment for a long time.
Invest in the Canadian banks
The Canadian banking industry should be very appealing to new investors for a few reasons. First, the Canadian banking industry is quite stable due to the heavy regulations that we have in Canada. Second, the Big Five banks are among the most influential companies in the country, maintaining a massive competitive advantage of their peers. Finally, the Canadian banks are excellent dividend payers, distributing a portion of their earnings to shareholders.
If I could only invest in one Canadian bank, it would be Bank of Nova Scotia (TSX:BNS). This company is known as Canada’s most international bank. In addition to its Canadian operations, Bank of Nova Scotia has established a formidable presence within the Pacific Alliance. In addition, the company has been paying shareholders a dividend for 190 years! This company’s strong dividend history and potential for growth are what I think new investors should focus on.