There’s never been a better time to be a new investor. The market is full of great opportunities right now, including some stellar beginner-friendly stocks that can help build a superb portfolio over time.
New investors can take solace in considering this trio of stocks that can provide growth and income-producing capabilities for decades.
Source: Getty Images
Let’s begin with a defensive titan
All portfolios need some defensive appeal, and Fortis (TSX: FTS) is a beginner-friendly stock for any investor.
Fortis is one of the largest utility stocks on the market, with sprawling operating segments covering the U.S., Canada, and the Caribbean.
What makes Fortis one of the beginner-friendly stocks? That comes down to its lucrative business model and generous dividend.
Utilities like Fortis generate a predictable revenue stream that allows it to invest in growth and pay a handsome dividend. That reliable revenue comes thanks to the long-term regulated contracts that represent the overwhelming majority of Fortis’s business.
In other words, as long as Fortis continues to provide utility services, it generates a recurring and reliable revenue stream.
Turning to dividends, Fortis offers investors a juicy quarterly dividend. As of the time of writing, the yield on that dividend works out to 4.20%. Even better, Fortis has provided annual upticks to that dividend for over half a century without fail.
That fact alone makes Fortis a buy-and-forget candidate and a beginner-friendly stock for any portfolio.
Invest in Canada’s big banks
Canada’s big bank stocks offer strong growth and attractive yields packaged in a defensive shell. Investors seeking beginner-friendly stocks will want to take a closer look at Bank of Montreal (TSX: BMO) as a solid option for any portfolio.
BMO is not the largest of Canada’s big banks, but it is the oldest. In fact, BMO has been paying out dividends for nearly two centuries without fail.
Take a moment to consider the stability that can offer to investors just starting out.
Factor in a 4.62% yield and an established history of annual upticks, and you have a hard-to-ignore stock.
If that were all BMO offered investors, it would be an intriguing option. But what really pushed the bank over the top is the growth potential it can offer.
Like its big bank peers, BMO has turned to the U.S. market to fuel its international growth. And thanks to a series of acquisitions over the years, BMO has a sizable presence in the U.S. market.
Much of that growth can be attributed to the acquisition of Bank of the West, which expanded BMO’s presence to 32 state markets. That deal also brought in millions of new customers and billions in deposits and loans.
Another great option: Telecoms
Telecoms represent another stellar pick for investors seeking beginner-friendly stocks to invest in. Canada’s big telecoms operate increasingly defensive subscriber-based segments that generate handsome income.
The telecom investors should consider investing in for long-term growth and income is Telus (TSX: T).
Telus, like its peers, offers subscription-based services that include wireless, wireline, TV and internet segments. Where Telus differs from its peers is in that the company is also investing heavily in the digital space.
This includes ventures into artificial intelligence, healthcare and Internet of Things services, all of which are complementary to its increasingly data-hungry subscription services.
Adding to that appeal is Telus’s quarterly dividend. As of the time of writing, Telus offers investors an insane 8.17% yield.
Part of the reason for that high-yield can be attributed to the stock taking a nearly 20% dip over the trailing 12-month period. Prospective investors should note, however, that the stock price dropping had more to do with inflation and interest rates than the performance of Telus.
If anything, now that rates are beginning to drop, there’s an opportunity to pick up this stellar stock at a discounted rate.
Time to buy your beginner-friendly stocks?
No stock, even the most defensive, is without some risk, and that includes the trio of beginner-friendly stocks mentioned above. Fortunately, the stocks offer defensive appeal to offset some of that risk.
In my opinion, one or all of the above should be core holdings in any well-diversified portfolio.
