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.

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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.

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