Finding the right mix of investments to add to your portfolio takes time. Some of those right investments to buy can be seen as no-brainer stocks that belong in every portfolio.
Here’s a look at two of those no-brainer stocks and how you can get started with just $500.
This is one of the no-brainer stocks you need to buy and forget about
One of the best long-term, no-brainer stocks that every seasoned and new investor should consider right now is Fortis (TSX:FTS).
Fortis is one of the largest utility stocks on the market. Utilities are bound by long-term, regulated contracts to provide their services. Often, those contracts can span decades in duration.
This means that utilities like Fortis generate a reliable revenue stream. That revenue stream leaves plenty of room for investing in growth and paying out a juicy dividend.
Utilities like Fortis are often stereotyped as investments that lack the ability or desire to invest in growth. Fortunately, Fortis breaks that stereotype. The company has a long record of investing in growth initiatives, including a series of ever-larger acquisitions over the years.
In recent years that growth has turned to upgrading its existing facilities and transitioning over to renewables.
Turning to dividends, Fortis carries a yield of 4.37%, making it a respectable option for any investor.
Adding to that appeal is Fortis’s annual increases. Specifically, Fortis has provided annual upticks to that dividend for an incredible 50 consecutive years without fail. This makes Fortis one of only two Dividend Kings in Canada.
It also means that Fortis is one of the stocks that investors can confidently buy now and hold for decades.
Banking on growth and income to fuel your portfolio
Some of the best no-brainer dividend stocks are those that provide a reliable income and some defensive appeal. Chief among those stocks to consider are Canada’s big banks. This can offer investors a reliable income stream and long-term growth potential.
And the one big bank for investors to consider right now is Bank of Montreal (TSX:BMO). BMO is the oldest of Canada’s big banks. It’s also been paying out a handsome dividend for nearly two centuries without fail.
Today the yield on that dividend works out to a respectable 4.90%. Prospective investors should also note that BMO, like Fortis, has an established history of providing annual upticks to that dividend.
BMO is also a great growth pick for investors. Apart from its mature segment in Canada, BMO also has a growing presence in the U.S. market.
BMO’s acquisition of California-based Bank of the West bolstered the bank’s standing as one of the largest banks in the U.S. market. Specifically, the deal expanded BMO’s presence to 32 state markets and added billions of loans across hundreds of new branch locations.
As of the time of writing, BMO trades at just under $123 and trades down 6% year to date.
Buy these no-brainer stocks today
No stock, even the most defensive, is without some risk. Fortunately, both BMO and Fortis offer strong growth and income-earning potential for all investors.
In my opinion, one or both are great, no-brainer stocks that should be core holdings in any well-diversified portfolio.
