As great as the market is in Canada, there are smart options to buy south of the border. And yes, Canadians can buy them, even in your TFSA! Some of these can provide significant growth and income-earning opportunities. These investments represent some of the savviest U.S. stocks that all investors should consider buying right now.
Here’s a look at some of those savviest U.S. stocks and why they belong in your portfolio.
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Buy this stock for the dividend. Stick around for growth.
One stock that should be on the radar of every U.S. investor right now is Verizon Communications (NYSE: VZ). Verizon is one of the largest telecoms in the U.S., with a loyal base of subscribers fueling its core business.
As of the time of writing, Verizon trades relatively flat this year, down just over 5% in the trailing year. Looking back further, the stock is down a whopping 35% over the past five years.
During that same time, Verizon’s dividend has gone in the opposite direction, coming in at an insane 6.9%. This makes it one of the top-paying dividends on the market.
By way of example, buying US$25,000 worth of Verizon right now will generate an income of just over US$1,700. Keep in mind that investors who aren’t ready to draw on that income yet can reinvest it. This allows any core investment (and future income) to grow over time on autopilot.
But Verizon isn’t just about juicy yields and a boring reliable telecom business. The company continues to grow and the most recent example of this is the ongoing acquisition of Frontier Communications.
That US$20 billion deal isn’t slated to close until next year, but when it does, investors can expect significant synergies. Additionally, the deal will greatly expand Verizon’s growing fibre network.
In other words, Verizon is one of the savviest U.S. stocks to buy now. Prospective investors should buy the stock, enjoy that dividend, and hold on for that future growth potential.
Was there any doubt this stock wouldn’t make the list?
You can’t venture too far without mentioning the expanding reach of Nvidia (NASDAQ: NVDA). Demand for Nvidia’s products remains in high. In fact, a new generation of graphics cards was announced earlier this month with lower price points than those of its predecessor.
Yes, that’s right. Newer cards, better performance, yet lower price. This puts the already undisputed leader on the market in an even better position against its potential peers seeking lower-cost entry points.
Oh, and let’s not forget a slew of new opportunities that are coming up by the day. The most recent of which was the recently announced Project Stargate. That whopping US$500 billion AI project, includes multiple data centres across the U.S. where Nvidia’s products will play a key role.
Despite the insatiable demand and prospects for Nvidia, the company’s stock has remained stable over the past several months. This makes it an ideal time to consider one of the savviest U.S. stocks to buy right now.
While Nvidia does pay a dividend, the paltry 0.04% is more of a rounding error than a source of income. Instead, prospective investors should be focused on the growth potential of the stock, which is in a word, insane.
The savviest U.S. stocks to buy today
No stock is without risk, and that includes both Nvidia and Verizon. Fortunately, both stocks are market leaders that boast healthy results and significant defensive appeal.
In my opinion, investors looking for some of the savviest U.S. stocks to buy should consider one or both of the above stocks as part of any well-diversified portfolio.
Buy them, hold them, and let them grow.
