There’s no shortage of great stocks to buy on the market. For new investors, those options include some stellar beginner-friendly stocks that should be core holdings.
Here’s a look at some of those beginner-friendly stocks to buy.
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Canada’s big banks are perfect for new investors
It would be impossible to compile a list of beginner-friendly stocks without mentioning at least one of Canada’s big bank stocks.
The big bank that new investors should consider buying now is Toronto-Dominion Bank (TSX: TD). TD is the second largest of Canada’s big banks, with a large network of branches in Canada and the U.S.
TD’s U.S. network is an area of focus for prospective investors. In the years following the Great Recession, TD acquired several regional lenders and stitched them together to form its U.S. network.
Today, that network stretches from Maine to Florida and is one of the largest lenders in that market, with over 1,000 branches and billions in deposits.
Between TD’s growing U.S. presence and its reliable domestic segment at home, the bank generates ample revenue to invest in growth and pays a very generous quarterly dividend.
As of the time of writing, that dividend works out to 4.91%, making it ideal for income investors. Adding to that appeal is the fact that TD has provided investors with annual upticks to that dividend for well over a decade.
How about a defensive stock with +50 years of dividend increases?
One of the most attractive elements in a dividend stock is a well-documented history of annual or better dividend upticks. Fortunately, there are more than a few beginner-friendly stocks that can provide that benefit.
One option is Fortis (TSX: FTS). Fortis is one of the largest utility stocks in North America. The company operates in segments across Canada, the U.S. and the Caribbean. Those segments provide Fortis with a reliable and recurring revenue stream, allowing it to invest in growth and pay out a handsome dividend.
Part of the reason for that reliable revenue stream stems back to the business model itself. Utilities like Fortis are bound by long-term, regulated contracts to provide utility services. Those contracts can span decades, leading to a reliable revenue stream.
Despite that stability, Fortis continues to invest in growth. Fortis has allocated a whopping $26 billion toward its current capital plan to fund growth. That growth includes new facilities, upgrading existing ones, and transitioning sites over to renewables.
Turning to income is where Fortis really shines as one of the must-have beginner-friendly stocks. Fortis offers investors a tasty quarterly dividend that pays out 3.83%.
Adding to that appeal is the fact that Fortis has provided investors with an annual uptick to that dividend going back over 50 consecutive years. The company also has plans to continue that annual cadence.
Prospective investors who aren’t ready to draw on that income year can choose to reinvest it. This allows any eventual income to continue growing until needed.
Become a landlord without the costs
One final option for investors looking for some beginner-friendly stocks to consider is RioCan Real Estate (TSX: REI.UN). RioCan is one of the largest real estate investment trusts (REITs) in Canada, with a portfolio of over 180 properties located around Canada.
Most of those properties are focused in Canada’s metro markets. In recent years, RioCan has also shifted its property mix to include a larger number of mixed-use residential properties.
And it’s those properties that pose a huge opportunity for investors.
The mixed-use properties, which RioCan has dubbed RioCan Living, comprise residential towers that sit atop several floors of retail. The properties are located along transit corridors in major metro areas, making them in-demand options.
For prospective investors, this is huge. This is because the risk associated with that investment is spread out over hundreds of units rather than a single property. RioCan provides investors with a monthly distribution, much like a landlord collecting rent.
As of the time of writing, RioCan’s distribution works out to 6.02%.
Beginner-friendly stocks for your portfolio
All stocks carry some risk, even defensive picks like the trio of beginner-friendly stocks mentioned above.
In my opinion, one or all of the above should be core holdings in any well-diversified portfolio.
