Now that September is here, some may be looking at the famed “September effect” and wondering whether it may be a good time to sell rather than buy. Fortunately, there are still plenty of great stocks to buy now, many of which still trade at a discount.
Here’s a look at two stocks to buy right now.
Enbridge: More than pipelines
Most investors have heard of Enbridge (TSX:ENB). The energy infrastructure behemoth is hard to ignore, particularly with its appetizing 6.70% yield.
The bulk of Enbridge’s revenue is generated from its lucrative pipeline segments. That includes both crude and natural gas elements, which haul massive amounts daily — so much, in fact, that they provide an insane defensive moat for the company.
What few investors may realize, however, is that Enbridge is involved in several other areas, which offer additional defensive appeal to investors. Specifically, that includes Enbridge’s natural gas utility as well as its growing renewable energy portfolio.
Enbridge has invested considerably in both segments over the past few years. This includes a handful of acquisitions on the natural gas front that propelled Enbridge into position as the largest natural gas utility on the continent.
Collectively, both segments help Enbridge generate an ample revenue stream that allows room for growth and a juicy dividend. Enbridge has also provided an annual uptick to that dividend for an incredible three decades without fail.
As of the time of writing, a $5,000 investment in Enbridge will provide an income of just over $300. That’s not enough to retire on, but it is enough to generate more than a few shares through reinvestments, allowing your nest egg to grow on autopilot until needed.
In other words, Enbridge is one of the great stocks to buy now and hold for decades.
BCE: A highly discounted gem
Another one of the great stocks to buy right now is BCE (TSX:BCE). BCE is one of the largest (or the largest telecoms in Canada. The company offers a series of subscription-based offerings to its customers, including wireless, wireline, TV, and internet services.
Since the pandemic, both the wireless and internet segments have become necessities for many. This has elevated the defensive appeal of an already highly defensive pick. That leads us to the opportunity for prospective investors.
The rising interest rates we’ve seen over the past several years have taken a heavy toll on the stock. As of the time of writing, BCE has dropped over 23% over the trailing two-year period.
That dip can be directly attributed to increased costs stemming from those higher rates, which even led BCE to announce a series of deep cuts earlier this year. Those cuts also included shedding some of its media holdings, which is yet another complementary revenue stream for the telecom.
Now that interest rates are beginning to drop, the appeal of BCE is growing. In fact, in the past three months, the stock has reversed that multi-year drop, registering an impressive 13% gain since July.
One of the main reasons why investors continue to flock to BCE is its juicy dividend. As of the time of writing, that quarterly dividend offers an impressive, if not insane, 8.23% yield.
This handily makes BCE one of the highest-paying dividend stocks on the market. It also means that investors who drop $5,000 into the stock will generate an income of $400. Again, the intent is to establish a stream for reinvestments to work their magic over a longer time.
Factor in BCE’s established history of annual dividend upticks, and you have one of the great stocks to buy.
Final thoughts
In my opinion, both BCE and Enbridge are superb stocks to buy right now. Both hold significant growth and defensive appeal and would do well as part of any well-diversified portfolio.
