If you’re just getting started in investing, it’s very easy to get lost in all of the data and traps out there. These days, investors have so much information to wade through to find out which stocks are the right ones to be buying. Fear no more. In this article, I’ll discuss three of the best stocks to invest $10,000 in right now. These three companies all have very simple businesses to understand and could continue to be major players in their respective industries for years to come.
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This is my favourite stock
If I could only pick one stock to invest $10,000 in right now, it would be Constellation Software (TSX:CSU). For many Canadians, this company may be one of the most impressive ones you’ve never heard about. The reason most Canadians have never heard of Constellation Software is because it doesn’t operate a consumer-facing business. No, instead, it operates in the background, acquiring vertical market software (VMS) businesses.
Constellation Software isn’t the only company that does what it does. There are many other companies that operate similarly. However, Constellation Software’s acquisition strategy and criteria have proven time and time again to be successful. That’s why this stock has managed to gain nearly 20,000% since its initial public offering in 2006. For those keeping track, that represents a compound annual growth rate of more than 34%!
One stock for the future
Another stock worth buying today is Shopify (TSX:SHOP). This is a company that has grown tremendously over a short period of time. Surprisingly, there are still Canadians out there that haven’t heard of this company. If that sounds like you, then you should know that Shopify operates in the e-commerce space. It provides merchants of all sizes with a platform and many of the tools necessary to operate online stores.
Shopify separates itself from its peers in that it offers a wide breadth of solutions that can cater to everyone from first-time entrepreneurs to large-cap enterprises. This company has certainly had its fair share of issues in recent years, like laying off more than 10% of its workforce. However, there’s no doubt that e-commerce will continue to grow over the coming decade, and Shopify is poised to continue growing its share of the online shopping market.
A dividend stock to balance out your portfolio
Both of the previous stocks have been growth-oriented, but that doesn’t mean investors should ignore dividend stocks. In fact, the Canadian stock market features many outstanding dividend stocks that investors could buy today. To highlight one of them, I will choose Fortis (TSX:FTS). This company provides regulated gas and electric utilities to more than three million customers across Canada, the United States, and the Caribbean.
Fortis is very notable because of its long history of raising its dividend distribution. For those who haven’t heard, this company has successfully increased its dividend in each of the past 50 years. That makes it a Canadian Dividend Aristocrat and gives it the second-longest active dividend-growth streak in the country. Fortis has already announced its plans to continue raising its dividend through to 2028, but I think it could keep growing well beyond that.
