The Best Stocks to Invest $10,000 in Right Now

The best stocks to buy for your portfolio can provide decades of growth and income-earning potential. Here are three to consider.

| More on:
Pile of Canadian dollar bills in various denominations

Source: Getty Images

Is your portfolio diversified? That’s a question most investors need to ask themselves because there’s no shortage of great stocks to invest in. Here’s a look at some of the best stocks to drop $10,000 in right now.

A Defensive stock with reliable income

There are few, if any, stocks on the market today that can offer as much defensive appeal as Fortis (TSX:FTS). For those who may be unfamiliar with the stock, Fortis is one of the largest utility companies in North America. Fortis boasts 10 operating regions across the U.S., Canada, and the Caribbean.

What makes a stock like Fortis one of the best stocks to invest $10,000 comes down to its lucrative business model.

In short, Fortis provides a utility service that is bound by long-term, regulated contracts. Those contracts often span multiple decades in duration, meaning that Fortis generates a reliable revenue stream.

That revenue stream allows Fortis to invest in growth and pay a generous dividend. As of the time of writing, Fortis’s quarterly dividend boasts a yield of 4.41%.

Even better, Fortis has provided investors with generous annual upticks to that dividend for a whopping 50 consecutive years without fail. For prospective investors with long-term timelines, this means that Fortis is the ultimate buy-and-forget stock.

The discounted buy with a crazy yield

Another great pick for investors to consider right now is BCE (TSX:BCE). BCE is one of the largest telecoms in Canada. Telecoms are incredibly defensive investments as they provide an increasingly necessary service.

In the case of BCE, the company offers wireless, wireline, internet, and TV services to subscribers across the country. Both the wireless and Internet segments in particular have grown immensely in the past few years as online commerce and remote working have taken hold.

And like Fortis, BCE’s defensive appeal is just half of the story. The company also offers a quarterly dividend, which it has been paying without fail for well over a century. As of the time of writing, BCE’s dividend offers an insane 9.27% yield, making it one of the highest-paying options on the market right now.

Part of the reason why BCE’s yield is so high is because the stock is trading down approximately 29% over the trailing 12-month period. A big reason for that drop can be attributed to rising interest rates, which led the telecom to aggressively trim costs.

For prospective investors, the drop in BCE’s stock price should be viewed as an opportunity to pick up a long-term gem at a very steep discount.

In short, BCE will recover as interest rates continue to drop over the next year. Until then, investors can continue to earn one of the best dividends on the market, where $10,000 will earn $930.

Growth and income from a big bank

You can’t compile a list of the best stocks to invest in without mentioning at least one of Canada’s big banks. Specifically, I’m referring to Bank of Montreal (TSX:BMO).

BMO is the oldest of Canada’s big banks and as a result, has been paying out a juicy dividend for nearly two centuries without fail. Today, the yield on that quarterly dividend is an impressive 5.34% and the bank continues to provide annual upticks to that yield.

Investors who can drop $10,000 into BMO can expect to generate a dividend income of just over $500. That’s not enough to retire on, it is enough to kickstart your portfolio with reinvestments.

BMO is also full of long-term growth potential. BMO’s foray into the U.S. market over the past year has positioned itself well for the long term.

Specifically, BMO’s acquisition of the Bank of the West has propelled it into position as one of the largest banks in the U.S. BMO now boasts operations in 32 state markets with millions of customers and billions in deposits.

Best stocks to buy

No stock, even the most defensive, is without some risk. That applies even to the trio noted above, which are some of the best stocks to invest in. Thankfully, all three boast defensive appeal to offset some of that risk.

In my opinion, one or all of the above should be part of any well-diversified portfolio.

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 BCE and Fortis. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

Dial moving from 4G to 5G
Dividend Stocks

This Undervalued Dividend Stock is Worth Buying Right Now

Want an undervalued dividend stock with long-term potential and a juicy yield? Here's an option you may regret not buying…

Read more »

Piggy bank next to a financial report
Stocks for Beginners

Is It Finally the Right Time to Buy Bank Stocks?

Canadian bank stocks are some of the most secure investments out there, but of them all, this bank stock is…

Read more »

Man data analyze
Tech Stocks

Is Shopify Stock’s Growth Sustainable?

There's a reason Shopify stock (TSX:SHOP) has been getting analyst upgrades, and investors should be paying attention.

Read more »

sale discount best price
Stocks for Beginners

2 Bargain Stocks You Can Buy Today and Hold Forever

When it comes to bargain stocks, investors want a solid mixture of current stability and future growth, and that's what…

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Stocks for Beginners

Saputo Stock Rose 24% in 90 Days: Here’s Why It’s Still Undervalued

Saputo (TSX:SAP) stock is still on the rise, but that doesn't mean this stock isn't full of value.

Read more »

grow dividends
Top TSX Stocks

Enbridge Stock Pays a Massive 7 Percent Dividend and Now is a Great Time to Buy  

Have you considered buying Enbridge stock lately? If not, you may want to buy this long-term gem to start earning…

Read more »

Metals
Stocks for Beginners

Why Shares of Stelco Stock Surged 78% This Week

Stelco stock (TSX:STLC) surged this week on news from the company that it would be bought up. And there's still…

Read more »

grow money, wealth build
Dividend Stocks

How $250 per Month Can Create $193.20 in Annual Dividend Income

If you want a lot of dividend income, you want the right dividend stock. This one offers high monthly income…

Read more »