Safe and Sound Stocks for Canadians: My Top 5 Choices

Want some of the best stocks for Canadians right now? Here’s my top 5 list of stocks to buy today and hold for decades.

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All stocks, even the most defensive, have some risk. That’s why the importance of diversifying your portfolio cannot be stated enough. But which stocks will make that list for Canadians?

Here’s a look at my top five stocks Canadians can buy right now that can provide growth, income, and some of that coveted defensive appeal.

Pick #1 – Fortis

Utility stocks are incredibly stable investments that should be at the top of any list of stocks for Canadians.

In short, utilities provide a necessary service, for which there is no alternative. That service is largely immune to market volatility. It’s also backed by long-term regulated contracts, which often span decades.

In other words, utilities generate a stable and recurring revenue stream irrespective of how the market is faring. That allows them to pay out a handsome dividend and invest in growth.

In the case of Fortis (TSX:FTS), that dividend works out to a yield of 4.33%. More importantly, Fortis is one of only two stocks for Canadians that has provided annual upticks to that dividend for a whopping 50 consecutive years.

Pick #2 – Telus

Telecom stocks represent another avenue for investors looking for both growth and income. Specifically, I’m looking at Telus (TSX:T). Telus offers subscription services to customers across the country.

Some of those services have grown immensely in importance and necessity in the past five years. Specifically, I’m referring to the need for fast, reliable internet service, and mobile data since the pandemic started.

This adds to an already defensive operation, which like Fortis, also boasts a juicy income and a long streak of dividend increases.

As of the time of writing, Telus offers investors an appetizing 6.68% yield and over two decades of handsome consecutive annual increases.

Pick #3 – Bank of Nova Scotia

Canada’s big banks are routinely some of the best stocks for Canadians to consider. That’s thanks to a reliable domestic segment that generates reliable revenue and growing operations in other markets that fuel growth.

Bank of Nova Scotia (TSX:BNS) differs from its peers in that it opted to invest heavily in Latin American markets over an increased U.S. presence. This has exposed the bank to more risk than its peers, but also much more opportunity, particularly over the longer term.

As an income stock, Scotiabank offers investors an insane 6.53% yield and a long history of annual bumps.

In short, Scotiabank is one of the must-have stocks for Canadian investors to buy now and hold for decades.

Stock #4 – Enbridge

Enbridge (TSX:ENB) is one of the largest energy infrastructure companies on the planet. Most Canadians recognize the company for its massive pipeline network and sprawling utility business. Fewer are familiar with Enbridge’s growing renewable energy operation.

All these segments collectively generate a reliable and growing source of revenue for the company. Enbridge is also one of the most defensive picks on the market. That comes thanks to the necessity and sheer volume of its pipeline business.

Enbridge’s diversified business segments leave ample room to invest in growth and payout one of the best dividends on the market.

As of the time of writing, Enbridge pays out an incredible 7.40%, making it one of the better-paying stocks for Canadians right now.

Stock #5 – RioCan Real Estate

RioCan Real Estate (TSX:REI.UN) is one of my final stock suggestions for Canadians to consider now. RioCan is one of the largest REITs in Canada, with a growing portfolio of mixed-use residential properties.

The properties comprise residential towers sitting atop several floors of retail. As to the location, they are situated across the major metro areas of Canada, along high-traffic transit corridors.

This makes investing in RioCan a lower-risk option when compared to the alternative being a traditional rental property.

Even better, RioCan pays out a monthly distribution, just like a landlord collecting rent. The key differences here are the lack of an ongoing mortgage payment, taxes, finding a tenant, and that massive downpayment requirement.

As of the time of writing, RioCan pays out a yield of 6.36% making it, like the other four options above, one of the must-have stocks for Canadians.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Demetris Afxentiou has positions in Bank of Nova Scotia, Enbridge, and Fortis. The Motley Fool recommends Bank of Nova Scotia, Enbridge, Fortis, and TELUS. The Motley Fool has a disclosure policy.

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