Do you have a bit of extra cash lying around? Instead of keeping it in your savings account, consider purchasing some outstanding stocks with around $5,000. However, you will have to pick stocks with strong financials, demonstrated profitability in previous years, preferably solid dividend yields, and growth prospects in the years to come.
With these criteria in mind, here are three standout stocks I think are worth buying right now.
Fortis
Fortis (TSX:FTS) is a top energy delivery and transmission player, with more than 90% of its assets invested in the infrastructure sector. This is a utility company that’s not only committed to providing its clientele with consistent service (gas and electricity) but is also working on executing a clean energy strategy to hit net-zero emissions by 2050. Indeed, that’s a big goal, considering the company’s core business involves delivering natural gas and electricity to its base.
Fortis has increasingly been diversifying its utility base, taking small stakes in global utilities operations and other clean energy generation companies. With strong recent third-quarter (Q3) earnings that beat expectations, Fortis has continued to provide bottom-line growth to investors. This increased cash flow has flowed not only into the company’s capital budget but back to shareholders. Fortis’s dividend growth strategy (50 straight years of dividend hikes) should continue to provide value to long-term investors for decades to come.
Enbridge
Enbridge (TSX:ENB) is an energy transportation company with a massive customer base primarily in North America. The company aims to achieve a transition from non-renewable source-based energy to clean and green energy sources. Currently, Enbridge is implementing advanced low-carbon energy technologies and increasing its exposure to other cleaner energy sources such as renewable natural gas, hydrogen, and other forms of clean energy.
Enbridge is the third-largest natural gas supplier in North America. It aims to deliver affordable, secure, and reliable energy through its four primary means of operation, which are gas utilities and storage, liquid pipelines, renewable energy, and natural gas pipelines.
Moreover, the company has recently announced its 2024 financial guidance, where it declared that its adjusted earnings before interest, taxes, depreciation, and amortization will likely grow from $16.6 billion to $17.2 billion. Also, Enbridge expects its distributable cash flow per share to grow from $5.40 to $5.80, making it a lucrative dividend stock to invest in right now.
Dream Industrial REIT
Dream Industrial REIT (TSX:DIR.UN) operates as an unincorporated, open-ended real estate investment trust (REIT). It holds a portfolio of 322 industrial assets totaling approximately 70.6 million square feet of leasable area across the markets of Canada, the United States, and Europe.
Recently, the company released its Q3 results, which highlighted some impressive fundamental strengths. The REIT reported 10.4% growth in its diluted fund from operations. Its net rental income also grew 17.4% compared to the same quarter last year.
As long as industrial real estate remains in high demand (which it should, considering the supply/demand fundamentals of this asset class), Dream Industrial should continue to perform well over time. Personally, I like this stock due to its mix of solid long-term growth and its robust dividend yield, which currently sits at 5.2%.
