There are more than a few top TSX stocks for investors to consider buying right now. Many of those stocks can provide decades of growth and a juicy income.
This can be a game-changer for both seasoned and new investors alike. To help meet that goal, here are my top TSX stocks to buy this month.
Defensive business and a reliable income
Fortis (TSX:FTS) is one of the top TSX stocks to consider in any portfolio. For those unfamiliar with the stock, Fortis is one of the largest utilities in North America.
Utility stocks like Fortis generate a reliable and recurring revenue stream that is backed by long-term, regulated contracts. That reliability means that Fortis can invest in growth and pay out a handsome dividend.
On the growth front, Fortis is investing heavily in multiple areas. This includes transitioning towards renewables as well as investing in its transmission business. Fortis’s new capital plan lays out a whopping $26 billion over the next several years.
Turning to dividends, Fortis pays out a quarterly dividend. As of the time of writing, that yield is a respectable 3.94%.
But perhaps best of all, the reason why Fortis is one of my top TSX stocks is because the utility has provided over 50 consecutive years of dividend increases. That makes Fortis one of just two Dividend Kings in Canada.
It also makes Fortis a superb buy-and-forget candidate for any portfolio.
Speaking of income, here’s a great pick
Another one of the top TSX stocks for investors to consider right now is Enbridge (TSX:ENB). Enbridge is one of the largest energy infrastructure companies on the planet.
The company boasts several complementary segments, including pipelines, storage, renewable energy and utilities. Among those, the pipeline business generates the bulk of Enbridge’s revenue.
There’s a good reason for that. The pipeline business, which includes both natural gas and crude segments, transports massive amounts to storage facilities and refineries in both Canada and the U.S.
In fact, Enbridge hauls one-third of all North American-produced crude and one-fifth of the Natural gas needs of the United States. This makes the stock one of the most defensive options on the market.
That same defensive appeal extends to its renewable energy and natural gas utility operations.
The result is Enbridge generating ample revenue from those segments that leaves room for growth and a very generous dividend.
As of the time of writing, that dividend carries a yield of 6.26%, making it one of the tastiest returns on the market. It’s also worth noting that Enbridge has provided annual upticks to that dividend for three decades without fail.
Bank on getting a juicy income here
You can’t compile a list of the top TSX stocks to buy without mentioning at least one of Canada’s big bank stocks. That’s because the banks offer reliable revenue, strong growth prospects and a tasty dividend.
And the one big bank that is at the top of my list of top TSX stocks right now is Toronto-Dominion Bank (TSX:TD).
TD is the second-largest of the big banks, operating sizable networks in both Canada and the United States. That U.S. network, which was largely formed in the years following the Great Recession, represents the bulk of TD’s growth focus.
At least until recently. An investigation led by U.S. regulators found last year that TD was liable for not doing enough to stop money laundering. This resulted in a hefty fine as well as an asset cap on TD’s U.S. operations.
Since then, TD refocused on Canada. The bank recently announced it was selling its stake in Schwab. TD plans to use those funds on organic growth in Canada as well as a share buyback.
Turning to dividends, TD offers a juicy 4.91% yield, making it a great long-term holding to consider right now.
Top TSX stocks to buy
All stocks carry some risk, which is why diversifying is so important. Fortunately, all three of the stocks mentioned above offer some defensive appeal in addition to their juicy dividends.
In my opinion, one or all of the above should be core holdings in any, well-diversified portfolio.
