Finding the perfect mix of investments today can make a huge difference to your portfolio tomorrow. Key among those investments to consider today are some brilliant Canadian stocks that can offer income and growth potential.
Here’s a look at three of those brilliant Canadian stocks for your portfolio.
This is a great opportunity right now
Most investors are aware that Canadian National Railway (TSX:CNR) is a superb investment option. But few may realize just how lucrative the stock is and how huge the investment opportunity is right now.
Canadian National operates one of the largest railways on the continent, connecting three coastlines to every major market in North America. That rail network also connects to ports, warehouses and factories across that impressive rail network.
This is hugely important because rail still accounts for most long-distance freight. That freight can be anything from automotive components, crude oil and wheat to chemicals, precious metals and finished products.
In other words, Canadian National boasts one of the largest defensive moats on the market — so much so that the railway hauls a whopping $250 billion worth of goods each year.
Adding to that defensive appeal is Canadian National’s juicy quarterly dividend, which currently earns a yield of 2.23%. The company has also provided annual upticks to that juicy dividend going back over two decades without fail.
That defensive appeal, juicy yield, and growth potential handily make this one of the most brilliant Canadian stocks to own.
Speaking of defence, how about a King?
As defensive as Canadian National is, this next option offers even more lucrative defensive appeal. That company, which is one of the brilliant Canadian stocks every investor needs, is Canadian Utilities (TSX:CU).
As the name implies, Canadian Utilities is a utility stock. Utilities generate reliable revenue that comes thanks to a lucrative, yet simple business model.
In short, utilities provide a service and are compensated for that service. The details and compensation are stipulated in long-term, regulated contracts that span decades.
In other words, as long as Canadian Utilities continues to provide utility service, it will generate a reliable and recurring revenue stream. That predictable revenue stream allows Canadian Utilities to invest in growth and pay out a handsome dividend.
As of the time of writing, that dividend works out to a very juicy 5.27%. Canadian Utilities is also one of just two stocks on the market that has the title of Dividend King. This means that the company has provided an incredible 50 consecutive years of dividend increases.
Canadian Utilities has amassed 52 consecutive years so far and plans to continue that cadence. This makes it one of the brilliant Canadian stocks to buy right now.
Invest in this telecom for long-term growth
Canada’s telecoms represent another area for prospective investors can turn to for some brilliant Canadian stocks to buy. And within that big telecom club is Rogers Communications (TSX:RCI.B).
Rogers is one of the largest (or largest depending on your metric) telecom. The company offers core subscription-based services that include wireless, wireline, TV, and internet segments.
Rogers also boasts a sizable media portfolio that includes predominately radio and TV stations scattered around the country. That media business provides an alternative yet complementary revenue stream to its core subscription business.
In recent years, telecoms have come under pressure from rising interest rates and inflation-wary customers looking to reduce costs. Telecoms are capital-intensive businesses, and building out a 5G network is a costly endeavour.
That’s part of the reason why Rogers’s stock price has dipped a whopping 36% over the trailing 12-month period. During that same period, the dividend has swelled to 4.90%.
Fortunately, interest rates are declining, which is good news for Rogers and its peers. If anything, Rogers’ stock price slump can be seen as an opportunity for long-term investors.
The brilliant Canadian stocks
No stock is without some risk. Fortunately, the three stocks mentioned above offer defensive appeal in addition to growth and income-earning opportunities.
In my opinion, one or all of the above should be core holdings in any larger, well-diversified portfolio.
