3 Canadian Stocks Tailor-Made for Beginning Investors in 2024

There are some great options to buy now for beginning investors. Here are three stocks to buy today and hold for decades.

| More on:

Finding a perfect mix of diversified stocks can be a daunting task, particularly for new investors. Fortunately, the market gives us plenty of options to consider. Here are three stocks primed for beginning investors in 2024.

Start with the defensive king

One of the best stocks for beginning investors to consider is Fortis (TSX: FTS). Fortis is one of the largest utility stocks in North America. The $66 billion behemoth boasts ten operating regions across Canada, the U.S., and the Caribbean.

Across those segments, Fortis has 3.5 million utility customers, spanning both electric and gas units.

But what makes Fortis a great option for beginning investors in 2024? That comes down to the company’s lucrative business model. Fortis generates a stable and recurring revenue stream for providing utility services that is backed by regulated long-term contracts that can span decades.

This allows Fortis to invest in growth and pay a very generous dividend.

As of the time of writing, that dividend works out to 4.42%, making Fortis a great addition to any well-diversified portfolio. Fortis has also provided annual upticks to that dividend for 50 consecutive years.

That fact alone makes the stock a great option for beginning investors. Prospective investors not ready to draw on that income can reinvest it, allowing any investment to grow for what could be decades of stable growth.

Don’t forget Canada’s big banks

It would be impossible to compile a list of stocks for beginning investors and not mention at least one of Canada’s big banks. The bank for investors to look at now is Bank of Montreal (TSX: BMO).

BMO is the oldest of Canada’s big banks and, as a result, has an incredible history of paying out generous dividends that spans nearly two decades. That’s an incredible amount of time, spanning wars, unrest, and market volatility.

Today, that dividend pays out a generous 4.62%, making it a great option to buy and forget like Fortis.

Apart from its storied history and juicy yield, BMO offers prospective investors lucrative long-term growth appeal. The bank, like most of its peers, has turned to the U.S. market to seek international growth.

For BMO, that growth came to fruition with the acquisition of Bank of the West last year. The deal established BMO as one of the largest in the U.S., with a presence in 32 state markets.

Additionally, the deal added hundreds of new branches in new state markets and billions in loans and deposits.

Beginning investors: Generate a recurring income stream

One of the best ways to generate a recurring income stream is by owning a rental property. Unfortunately, the rising interest rates and white-hot market have priced out many would-be investors.

But rather than spend a cool $250,000 on a downpayment and still have to worry about a mortgage, property taxes and finding a tenant, there is another option.

RioCan Real Estate (TSX: REI.UN) is one of the largest real estate investment trusts (REITs) in Canada. The company boasts over 180 properties across Canada with a whopping 32.6 million square feet of leasable area.

Historically, RioCan has focused on retail and commercial properties for its portfolio, but in recent years, that mix has changed. Specifically, RioCan has added an increasing number of residential mixed-use properties into the mix, and that’s where an opportunity lies.

The properties, which RioCan calls RioCan Living, comprise residential towers that sit on top of several floors of retail. The buildings are situated in Canada’s major metro areas along major transit and commerce routes.

In other words, the properties are in high-demand areas and cater to the lack of available properties in metro areas.

But why should beginning investors consider RioCan right now, particularly compared with a traditional rental property?

In short, RioCan is a lower-risk, lower-upfront-cost way to generate a monthly income stream. The risk of investing is spread across hundreds of units, not one property. Additionally, there are no maintenance or tenant issues.

Finally, RioCan’s monthly distribution, which boasts a 6.04% yield, is both sustainable and attractive. By way of example, Investors who drop $40,000 into RioCan (less than a downpayment) will generate a monthly income of just over $200.

Fool contributor Demetris Afxentiou has positions in Fortis. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

Young adult concentrates on laptop screen
Dividend Stocks

The 3 Canadian Stocks I’d Tell a New Investor to Buy ASAP

These three Canadian stocks give new investors dividend income, resilience, and long-term growth across utilities, railways, and bank stocks.

Read more »

person enjoys shower of confetti outside
Dividend Stocks

Starting at 30? $500 a Month Could Grow Past $1.1 Million by 65

Five hundred dollars a month doesn’t sound like much, but over 35 years it can grow into seven figures through…

Read more »

senior couple looks at investing statements
Dividend Stocks

This 3-Stock TFSA Plan Gets Harder to Catch Up On Every Year You Wait

Skipping a year of TFSA investing can not only lose you $7,000, it can cost decades of compound growth.

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Stocks for Beginners

2 Undervalued Canadian Stocks Ready to Explode Higher

Improving business trends and long-term growth initiatives give these two undervalued Canadian stocks plenty of recovery potential.

Read more »

Hourglass projecting a dollar sign as shadow
Dividend Stocks

Waiting 5 Years to Invest $7,000 a Year Could Cost You Nearly $200,000

Waiting five years to start investing can look small today, but it can snowball into a $200,000 gap later.

Read more »

A glass jar resting on its side with Canadian banknotes and change inside.
Energy Stocks

Waiting Until 45 Instead of 35 to Invest $500 a Month Could Cost You $450,000 by 65

Starting with $500 a month at 35 instead of 45 could mean hundreds of thousands more at 65, even with…

Read more »

A woman shops in a grocery store while pushing a stroller with a child
Dividend Stocks

Is This TSX Dividend Yield Too Good to Be True? I Checked the Numbers

Slate Grocery REIT offers a 7.5% TSX dividend yield, but investors should look at its payout, tenants, debt, and growth…

Read more »

coins jump into piggy bank
Stocks for Beginners

The Big 6 Reported Earnings: Here’s My Favourite Bank Stock to Buy Now

All six Canadian banks beat earnings estimates, but their stocks are now priced as if investors expect that to keep…

Read more »