One of the biggest hurdles that new investors often struggle with is where to start investing. Fortunately, there’s no shortage of superb options to consider on the market, including some great options to start investing even with just $1,000.
If you are looking to start investing, here are a few great investment options to get you started.
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High-yield, high-growth and lots of potential
Dividend-paying investments aren’t just for retirees who want a stable income stream. One of the great things about investing in income-paying stocks is that investors who aren’t ready to draw on that income can reinvest those dividends.
This allows your eventual nest egg to grow on its own for what could be decades. So then, what stock should we start investing with?
Let’s take a look at Enbridge (TSX: ENB).
Enbridge is an energy infrastructure giant. The company operates a massive pipeline network that traverses North America, hauling both crude and natural gas. The sheer volume hauled, as well as the necessity of both, makes Enbridge a great defensive option to consider.
The segment also provides a stable and recurring revenue stream, which allows Enbridge to invest in growth and pay a handsome dividend.
Looking beyond the pipeline business, Enbridge also operates a natural gas utility and a growing renewable energy portfolio. Both of these provide additional defensive appeal and a recurring revenue stream backed by long-term regulated contracts.
In terms of a dividend, Enbridge pays out a quarterly dividend that has a yield of 6.9%. For investors looking to start investing with an initial outlay of $1,000, reinvestments in the first year can provide additional shares.
Bank on growth and income coming
It would be nearly impossible to compile a list of great stocks to start investing with and not mention at least one of Canada’s big banks. The banks offer a reliable revenue stream at home, growth prospects outside of Canada, and a juicy dividend each quarter.
But what bank should those who are looking to start investing consider?
Bank of Nova Scotia (TSX: BNS) is an appealing investment to consider right now. Scotiabank isn’t the largest of the big banks but it has been paying out dividends to investors without fail for nearly two centuries.
Today the yield on that quarterly dividend works out to a juicy 6.7%, making it one of the better-paying dividends on the market. And like Enbridge, a $1,000 investment in the bank today will yield enough dividend income to generate additional shares through reinvestments.
Prospective investors should also note that Scotiabank, like its big bank peers, is not only defensive and an income-producer, but it can be a source of growth too.
Specifically, Scotiabank has invested in Latin American markets over the years. More recently, Scotiabank announced it would shift some of that growth focus to the U.S. market and away from lower-performing markets.
Growth today, income tomorrow
One final area for those looking to start investing to consider is Canada’s telecoms. The big telecoms provide increasingly necessary services to subscribers across the country.
That reliable (if not necessary) business model provides a recurring and growing source of revenue, which allows telecoms to invest in growth initiatives and pay out a very handsome dividend.
The telecom for investors looking to start investing now to consider is Telus (TSX: T). Telus offers the typical subscriber-based options that its peers provide. But there’s also something additional that Telus offers it peers do not.
Telus is also investing in several complementary areas that could become viable revenue streams over the next few years. This includes intriguing healthcare and security suites, which both show strong long-term growth potential.
Turning to income, Telus provides investors with a healthy quarterly dividend that carries a yield of 6.9%. The company has also provided generous annual upticks to that dividend going back well over a decade.
This makes the telecom stock a great buy-and-forget candidate for long-term investors.
Start investing now
No stock, even the most defensive is without some risk. That’s why the importance of diversifying cannot be stated enough.
In my opinion, one or all of the above stocks should be core holdings in any well-diversified portfolio.
