Selecting the best Canadian Stocks for your portfolio is something that will be different for nearly every investor. Canadian stocks are blessed for having a good mix of income and growth-focused stocks that can cater to any portfolio.
Here’s a look at what I see as some of the best Canadian stocks for investors to buy and hold.
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You need a bank in your portfolio
Canada’s big bank stocks are always a good option for a portfolio. Between the tasty dividend, reliable domestic market and a growth-focused international segment, there’s something for every investor.
The big bank to buy and hold in your TFSA, which is handily one of the best Canadian stocks to buy, is Bank of Nova Scotia (TSX: BNS).
Scotiabank isn’t the largest of the big banks, but it continues to grow and has been paying out a very handsome dividend for nearly two centuries. As of the time of writing, Scotiabank’s yield works out to an impressive 5.31%.
This means that investors with a $35,000 investment into the bank will earn an income just shy of $2,000. Prospective investors should keep in mind that those dividends can and should be reinvested until needed.
This allows any eventual income to continue growing over the longer term.
Apart from its juicy yield, Scotiabank can also become a source of growth. The bank, which is already known as Canada’s most international bank, is focusing on the U.S. market to fuel growth.
That focus includes a stake in U.S.-based KeyCorp, which was announced last year.
Put your income on autopilot
The market is filled with stellar defensive options that can provide a stable recurring source of income. Canadian Utilities (TSX: CU) is a prime example of that view.
Canadian Utilities operates a regulated business that generates a reliable revenue stream that leaves room for growth investment and a juicy dividend. This is because utility stocks are bound by very long-term, regulated contracts.
Speaking of income, Canadian Utilities offers investors a tasty quarterly dividend with a yield of 5.27%. Like Scotiabank, an investment of $35,000 in Canadian Utilities will also generate nearly $2,000 in income, but there’s an additional point to note.
Canadian Utilities is one of only two Dividend Kings in Canada. This means the company has provided annual upticks to its dividend for a whopping 50 consecutive years.
Specifically, Canadian Utilities’s dividend most recently hit an incredible 52 years of consecutive annual increases. That fact alone makes this one of the best Canadian stocks to own for the long term.
How about a growth pick?
Another fine option to consider is that is among the best Canadian stocks to own is Dollarama (TSX: DOL).
Dollarama is the largest dollar-store operator in Canada, with over 1,300 locations and stores in every province. Few investors may realize this, but Dollarama also operates a growing business in several Latin American countries under the Dollar City name.
Dollarama’s appeal stems from its unique fixed price-point system that provides an added sense of value to shoppers. Another key point is the market itself. Dollar stores like Dollarama typically thrive during downturn periods, as shoppers trade down to more frugal stores.
That potential is evident in Dollarama’s growth. As of the time of writing, the stock is up 45% over the trailing 12-month period and a whopping 205% in the past five years.
This makes Dollarama a unique growth option to consider and one of the best Canadian stocks to buy right now.
The best Canadian stocks are here to purchase
The stocks mentioned above all boast solid defensive appeal, growth prospects and a healthy dividend. Not only does this make them great options to consider, but they’re also some of the best Canadian stocks on the market.
In my opinion, one or all of these stocks should be core holdings in any well-diversified portfolio.
