The market is full of great stocks for both seasoned and new investors to consider buying. Fortunately, it’s a great time for any young investor to grab one or more starter stocks to build a comfortable future.
Here’s a look at four of those excellent starter stocks for investors to add to a TFSA today.
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Starting with a defensive King
Utility stocks like Fortis (TSX: FTS) are some of the best long-term options on the market. Not only do they provide a reliable revenue stream backed by long-term regulated contracts, but they also provide a juicy income.
In the case of Fortis, the company is one of the largest utilities in North America with a presence in Canada, the U.S., and the Caribbean. It may not be the sexy high-growth stock that most investors seek out, but it is stable, growing, and can provide years of growth.
Turning to income, Fortis is one of just two stocks in Canada with the label of Dividend King. That’s because the company has provided investors with annual upticks to its quarterly dividend for over a century. Even better, Fortis plans to continue that cadence.
For new investors, this makes Fortis one of the ultimate buy-and-forget options thanks to the prospect of reinvesting those dividends for decades.
As of the time of writing, Fortis boasts a yield of 4.1%, making this one of the excellent starter stocks for any portfolio.
Bank on growth to come
It would be nearly impossible to compile a list of excellent starter stocks without mentioning at least one of Canada’s big banks. In short, the banks offer a stable domestic market at home, strong growth abroad, and a juicy (growing) dividend.
And the big bank stock to consider buying right now is Bank of Montreal (TSX: BMO). BMO enjoys a growing presence in the U.S. market in addition to its solid footing in Canada.
BMO is the oldest of Canada’s big banks, meaning that the bank has been paying out dividends for nearly two centuries without fail. And like Fortis, the bank has an established cadence of providing investors with a juicy annual uptick to that dividend.
As of the time of writing, the yield on BMO’s dividend works out to a tasty 4.6%.
RioCan is one of the largest REITs in Canada, with properties concentrated in major metro markets. In recent years, RioCan has embraced more mixed-use residential properties, which are centered around major transit corridors.
Consider this REIT
REITs are attractive long-term investments that can provide a juicy income, often on a monthly cadence. Investors looking for excellent starter stocks should take a look at RioCan Real Estate (TSX: REI.UN)
This not only caters to the insatiable demand for housing but also provides several floors of retail as well. In short, it makes RioCan a very defensive option to consider with lucrative long-term appeal.
Turning to income, RioCan boasts a juicy 6% yield that is distributed monthly. This handily makes the REIT one of the better-paying options on the market and a must-have for investors seeking some excellent starter stocks right now.
Excellent starter stocks come in all forms
Another investment that is an excellent starter stock to buy is Enbridge (TSX: ENB). The energy infrastructure behemoth is best known for its lucrative pipeline business, but it also does much more.
Specifically, Enbridge boasts one of the largest renewable energy portfolios in Canada, with the segment also including assets in both North America and Europe. That portfolio includes hydro, solar and wind elements, with a generating capacity to power 1.2 million homes.
Enbridge also operates the largest natural gas utility in North America with 7 million customers. The segment saw significant growth in the past year thanks to a series of well-executed acquisitions.
Collectively, all of Enbridge’s segments provide a defensive, reliable and growing revenue stream – allowing for both growth and income.
Speaking of income, Enbridge has provided annual bumps to its quarterly dividend for a whopping three decades without fail. The yield currently sits at 6%, making Enbridge, along with the other three stocks mentioned above some of the excellent starter stocks for any portfolio.
