Building out a well-diversified portfolio takes time. It also requires picking the right mix of stocks that can provide growth and income-producing capabilities. Fortunately, the market provides plenty of options for new investors, including these no-brainer stocks to buy right now.
Here’s a look at two of those no-brainer stocks for new and seasoned investors alike to consider. And best of all, both stocks trade for under $60.
Option #1: The defensive titan
Utility stocks are some of the most defensive options on the market, and Canadian Utilities (TSX:CU) is the defensive king of the market.
Part of the reason for the defensive appeal of utilities comes down to the lucrative business model that they adhere to.
In short, utilities provide a service that is backed by regulated, long-term contracts. For as long as the utility continues to provide that service, it generates a recurring and stable revenue stream.
In the case of Canadian Utilities, that stable revenue stream allows the company to continue investing in growth and pay out a very generous dividend.
As of the time of writing, that dividend works out to a yield of 5.53%. For new investors with $5,000 to start investing, that’s enough to generate several new shares through reinvestments alone.
But that’s not even the best part.
Canadian Utilities is one of only two Dividend Kings on the market. The company has provided annual upticks to that dividend for an incredible 52 years and has no plans to stop that cadence.
This fact alone makes Canadian Utilities one of the no-brainer stocks to buy right now and hold forever.
Option #2: Put your portfolio in overdrive
While the buy-and-forget appeal of Canadian Utilities is hard to ignore, the appeal of Enbridge (TSX:ENB) is just crazy.
Enbridge is one of the largest energy infrastructure companies on the planet. The company is best known for its lucrative pipeline segment, which hauls insane volumes of both crude and natural gas each day.
The pipeline business generates the bulk of Enbridge’s revenue and makes it a defensive titan. What makes Enbridge a no-brainer stock to buy, however, is the collective appeal of Enbridge’s other segments and its lucrative quarterly dividend.
Apart from its pipeline business, few investors may realize that Enbridge also operates a growing renewable energy business. That segment, which the company has invested billions into over the past decade, comprises approximately 40 facilities located across North America and Europe.
Enbridge also operates the largest natural gas utility in North America, offering even more defensive appeal.
Like the utility model of Canadian Utilities, Enbridge’s renewable and Natural gas businesses offer reliable revenue generation and significant growth appeal.
Perhaps the best reason for investors to consider Enbridge is its quarterly dividend. As of the time of writing, Enbridge boasts an insane yield of 6.92%, making it one of the better-paying dividends on the market.
Despite that generous yield, Enbridge continues to provide investors with juicy annual upticks to that dividend. The company has an established tradition of those upticks that goes back three decades, making this another no-brainer stock to buy and hold.
No-brainer stocks to buy
No stock, even defensive options like the two stocks noted above, are without risk. That’s why the importance of diversifying cannot be understated enough.
Fortunately, both Canadian Utilities and Enbridge offer significant defensive moats to offset some of that risk. They also offer intriguing growth appeal and very attractive yields, and that makes them stellar options to buy and hold for decades.
In my opinion, one or both stocks should be core holdings in any well-diversified portfolio.
