Investors who start building their portfolio out earlier benefit from years of reinvestment and growth. But what stocks should those who are new to investing start with? Fortunately, there are plenty of beginner-friendly stocks to choose from.
Here’s a handful of those beginner-friendly stocks that are great options to start with this month.
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Energy Infrastructure giant with a huge dividend
Enbridge (TSX: ENB) is often regarded as one of the top picks for both new and seasoned investors alike. There are plenty of reasons for that view, including strong growth prospects and offering one of the best-paying dividends on the market.
The bulk of Enbridge’s revenue stems from its lucrative pipeline network. That segment transports a whopping one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S.
And that’s not all the company offers. It also operates the largest natural gas utility in North America and a growing renewable energy portfolio. The result is multiple, reliable, and recurring revenue streams.
Those revenue streams allow Enbridge to pay a very generous 6.32%. Even better, Enbridge has provided annual upticks to that dividend going back three decades without fail.
In other words, Enbridge is a beginner-friendly stock for any portfolio.
Banking on growth and more
Canada’s big banks are often regarded as some of the best beginner-friendly stocks to add to any portfolio. That is because they can offer superb growth and a growing income, all wrapped in a very defensive shell.
One bank for new investors to consider right now is Canadian Imperial Bank of Commerce (TSX: CM). CIBC isn’t the largest of the big banks, but it does offer plenty to investors.
CIBC offers investors a very tasty quarterly dividend that currently works out to an impressive 4.06% yield. Additionally, the bank has provided annual or better upticks to that dividend going back for years and has paid out dividends without fail since 1868.
That fact alone makes CIBC a great buy-and-forget option for any portfolio, but there’s still more.
CIBC enjoys a strong, mature domestic market share at home, which generates a reliable revenue stream. Outside of Canada, the bank is steadily increasing its presence in the U.S. market, diversifying its already impressive revenue stream.
That growth has helped the stock surge a whopping 70% over the trailing 12-month period.
In short, this is a beginner-friendly stock investors will want to grab and hold for the long term.
A defensive stock you can own for decades
Fortis (TSX: FTS) is a third of the must-have beginner-friendly stocks for investors. Fortis is one of the largest utility stocks on the market. For investors, this means that Fortis generates a reliable and recurring revenue stream from its stable business model.
That stable revenue stream allows Fortis to invest in growth and pay out a handsome (and growing) dividend. As of the time of writing, Fortis boasts an impressive 4.05% yield.
Perhaps best of all, Fortis continues to provide annual upticks to that tasty dividend. In fact, the company has provided that annual increase for over 50 consecutive years without fail.
That fact alone makes Fortis a must-have for any long-term portfolio.
The beginner-friendly stocks you should buy
The beginner-friendly stocks mentioned above can provide years of solid growth and a tasty dividend. Investors who aren’t ready to draw on those dividends can reinvest them, allowing them (and your future income) to continue growing.
In my opinion, one or all of the above stocks should be core holdings in any well-diversified portfolio.
Buy them, hold them, and watch them grow.
