As the year comes to a close, many investors are seeking opportunities to make the most of their portfolios before ringing in the New Year. If you have $500 to invest, now is the time to consider adding some high-quality Canadian stocks to your holdings.
These two stocks offer a compelling combination of stability, growth potential, and income, making them ideal for new and experienced investors. Here’s why these two stocks deserve your attention right now.
Image source: Getty Images
Newmont
Newmont (TSX: NGT) is a global leader in gold mining, with operations in the Americas, Africa, and Australia. While gold stocks can be cyclical, Newmont’s strong operational track record and financial stability make it a top choice in the sector.
Gold is often considered a safe-haven asset, particularly during periods of economic uncertainty and market volatility. As inflation concerns persist and interest rate fluctuations create uncertainty, gold prices are expected to remain robust. Newmont, the world’s largest gold producer, is well-positioned to benefit from these trends.
In addition, Newmont boasts an impressive portfolio of high-quality gold assets with proven and probable reserves of over 90 million ounces. This asset base ensures investors will have exposure to impressive production capacity for decades to come, providing a solid foundation for long-term growth. Moreover, Newmont’s commitment to returning value to shareholders is evident in its dividend policy. The company offers a dividend yield of approximately 2%, highly competitive within the mining sector.
In my view, Newmont would be a great place to split a $500 initial investment in the market in 2025, given where the price of gold appears to be headed these days.
Fortis
Fortis (TSX: FTS) is a great place to put the other $250 to work in the market right now, at least in my view. That’s because Fortis is a leading Canada-based utilities company known for its stable and reliable dividends. With a history spanning over 130 years, Fortis has built a reputation as one of the most dependable investments on the TSX.
Utilities like Fortis are considered defensive stocks because they provide essential services such as electricity and gas, ensuring consistent revenue regardless of economic conditions. This makes Fortis an ideal pick for investors seeking stability during uncertain times. Furthermore, Fortis is a Dividend Aristocrat, having increased its dividend for nearly 50 consecutive years. The company’s current dividend yield is around 4%, and the company’s management has a long-term plan to grow dividends by 4-6% annually.
Fortis is actively transitioning to renewable energy sources, with plans to invest billions in clean energy and grid modernization. This forward-looking strategy positions the company for sustainable growth as the global energy landscape evolves. A $250 investment in Fortis provides exposure to a reliable income stream and the potential for steady capital appreciation. With its strong track record and commitment to dividend growth, Fortis can anchor your portfolio, even in volatile markets.
