Is your portfolio diversified? Adding more options is a breeze for seasoned investors, but where do those new to investing begin?
Fortunately, the market is full of great options, even if you are new to investing. Here are five superb options to kick-start your portfolio.
Option 1- Income and growth potential
Most investors, even those new to investing know about Enbridge (TSX:ENB). The energy infrastructure giant is best-known for its massive pipeline network which generates the bulk of its revenue.
But that’s not all. Enbridge is much more than recurring pipeline revenue. In fact, Enbridge has significant growth prospects. That includes a growing renewable energy business and the largest natural gas utility on the continent.
Turning to dividends, Enbridge offers a juicy quarterly dividend that is backed by its reliable, defensive operations. As of the time of writing, Enbridge pays out an insane 7.3%.
Enbridge has also provided annual increases to that dividend going back three decades without fail. This handily makes the stock a prime candidate for anyone new to investing.
Option 2- Big Bank, big income
Even those who are new to investing are aware of Canada’s big banks. The banks offer a reliable revenue stream backed by a strong domestic segment at home. They also boast strong growth prospects from outside the country. Both segments help the banks to pay out a generous dividend.
Those new to investing should look at Bank of Montreal (TSX:BMO) as a long-term holding to kickstart any portfolio.
BMO is the oldest of the big banks and has been paying out dividends for well over a century without fail. As of the time of writing, the yield on that quarterly dividend works out to a respectable 5.1%. BMO also has an established precedent of providing annual generous upticks to that dividend.
Turning to growth, BMO has expanded heavily into the U.S. market in recent years. This includes the acquisition of California-based Bank of the West. That deal pushed BMO’s presence to 32 state markets and added millions of customers and billions in deposits.
Option 3- Defensive income
Apart from the big banks, another great segment for those new to investing are Canada’s big telecoms. Specifically, I’m referring to Telus (TSX:T). Telus offers subscription-based services to customers across the country. Those services include TV, wireline, wireless, and internet segments.
In recent years, the need for wireless and internet services has grown significantly, arguably becoming a necessity. This has elevated an already defensive option further.
Adding to that appeal is timing. Year-to-date, Telus trades down over 7%. That dip can be attributed to the impact of the high interest rate environment. Now that rates are beginning to drop (the second was announced this week), investors can expect Telus’ stock to begin to rise once more.
Turning to dividends, Telus offers a quarterly dividend earning 7.2% and has over a decade of generous annual bumps to that payout.
Option 4 – Let’s talk growth
Another option for those new to investing to consider is Alimentation Couche-Tard (TSX:ATD). Couche-Tard is one of the largest convenience store and gas station operators on the planet. Convenience stores and gas stations are very defensive options, even if they don’t appear to be at first glance.
As of the time of writing, Couche-Tard trades up over 20% in the trailing 12-month period. And despite that stellar growth, the company still holds more growth potential, even for those new to investing.
That’s because Couche-Tard continues to aggressively expand to new markets, post promising results, and reach into new complementary segments. This includes moving into EV charging and car washes, and adding additional products for purchase.
Option 5- Canada’s retailer
One final option for those new to investing to consider is Canadian Tire Corporation (TSX:CTC.A). Apart from being one of Canada’s oldest and best-known retailers, Canadian Tire has expanded into several new segments in recent years.
This includes sporting equipment, clothing, party supplies, and other key products. The company is also building out exclusive in-store brand offerings as a defence to the ongoing threat of e-commerce.
The retailer also offers a quarterly dividend with a 4.9% yield. This makes it a great addition to any well-diversified portfolio.
