It seems lately that the market is full of chaos with trade wars, tariffs and uncertainty dominating the headlines. Fortunately, despite all that uncertainty, there are some truly great Canadian Stocks available to buy now.
Not only do those stocks promise significant growth potential, but they can also be a source of income.
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Start with some serious energy (and income)
The first of the Canadian stocks I would consider buying (or buying more of in this case) is Enbridge (TSX:ENB). Enbridge is an energy infrastructure behemoth that has massive tentacles in multiple segments of the energy market.
The company is best known for its pipeline network, which includes both crude and natural gas elements. There’s a good reason for that notoriety: that pipeline network is incredibly defensive and generates the bulk of Enbridge’s revenue.
Specifically, the segment is responsible for transporting a whopping one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S. market.
Incredibly, that’s just part of what Enbridge does.
The company also boasts a growing renewable energy business. That business includes solar, wind and hydro facilities located in both North America and Europe. Those facilities generate a reliable revenue stream backed by regulated contracts that span decades.
That reliable business model also applies to Enbridge’s natural gas utility business. That business boasts seven million customers in North America, providing yet another recurring revenue stream for the company.
Enbridge’s diversified revenue streams provide ample room for growth and to pay out a generous dividend. That dividend currently boasts a yield of 5.93%, making it one of the best-paying Canadian stocks on the market.
Prospective investors should also note that Enbridge has provided annual upticks to that dividend going back three decades without fail.
Telecoms can provide growth and income, too
Another superb option for investors looking at Canadian stocks right now is Telus (TSX:T). Telus is one of Canada’s big telecom stocks.
Telecoms generate a recurring revenue stream that is backed by a stable subscriber-based business.
In the case of Telus, those subscriber segments include wireless, wireline, TV, and internet services. Those segments have become increasingly essential in recent years, lending to the case for investors to consider Telus one of the core Canadian stocks to own.
Where Telus differs from its peers is the lack of a media segment. Given the volatility we’ve seen from high interest rates recently, this has proven advantageous for Telus.
That being said, Telus is not entirely a pure play. The company has invested in growing its digital business, which includes services offered to key areas of the market, such as healthcare and agriculture.
One of the main reasons why investors continue to flock to Telus is for the company’s quarterly dividend. As of the time of writing, the yield on that dividend works out to an insane 7.97%.
Investors should also note that, like Enbridge, Telus has an established cadence of providing investors with juicy annual upticks to that dividend going back over a decade.
The Canadian stocks to buy
Both Telus and Enbridge represent two Canadian stocks that can provide investors with both growth and income-earning capabilities.
And while no stock is immune from risk, both of the above offer some defensive appeal in addition to their growth potential.
In my opinion, one or both stocks would be great additions to any well-diversified portfolio. A $5,000 investment in both stocks will provide a suitable baseline for investors to grow a nest egg.
