Some of the best stocks to own are those which we interact with on a daily basis, yet often fail to even realize that they are investments. In short, these everyday stocks are hidden gems that belong in any portfolio.
Here’s a look at a trio of everyday stocks that should be strong candidates for any long-term diversified portfolio.
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Have you gone grocery shopping?
Grocery shopping is a unique experience. On the one hand, it’s a necessary expense that we can’t do without. Even when prices rise, as we’ve seen in recent years, groceries are something we can’t avoid.
The other side of that coin is an oddity. Most consumers enjoy some aspects of grocery shopping. That’s a unique feature that can’t be applied to other necessities such as a cell phone or utility bill.
And that’s where the unique appeal of grocers like Metro (TSX: MRU) comes into play.
Metro is one of the largest grocers in the country, with a network of over 950 grocery stores and 650 pharmacies located primarily in Ontario and Quebec.
The pharmacy business is primarily served through the Jean Coutu brand, whereas the grocery business comprises a handful of banners that cater to different tastes and price points.
Adding to that appeal is Metro’s dividend. As of the time of writing, Metro pays out a respectable 1.4% yield. The company has also provided annual bumps to that dividend going back over three decades without fail.
Metro’s growing presence, growing dividend, and sheer necessity make this everyday stock a great option for any portfolio.
You can buy anything from this retailer and earn a juicy yield
Canadian Tire Corporation (TSX: CTC.A) is often referred to as Canada’s retailer, and there’s a good reason for that. The company’s namesake retail brand has been a staple for Canadians going back over a century.
Today, this retail stock leader boasts a growing portfolio of banners that includes everything from party supplies, automotive parts and sports gear.
More importantly, Canadian Tire has found innovative ways to embrace technology and tie it into its traditional retail model. This includes its popular rewards program, digital weekly circular, and various shopping aids.
That clever approach has helped Canadian Tire post stellar results over the years despite the growing threat of online retailers. In fact, the company continues to grow. Recently, Canadian Tire announced it would be purchasing brands and IP from the now-defunct Hudson’s Bay Company, which entered creditor protection earlier this year.
Canadian Tire also boasts a juicy quarterly dividend, which furthers its appeal as one of the everyday stocks for any portfolio. As of the time of writing, Canadian Tire offers a yield of 4.2%.
Round out your everyday stocks with this food gem
One final pick among the everyday stocks for any portfolio is Premium Brands Holdings (TSX: PBH). For those unfamiliar with the stock, Premium Brands is a manufacturing and distribution giant.
The company offers a dizzying collection of 40 specialty food brands and over 25 distribution banners. In other words, if you’ve purchased food from a grocery store, it’s more than likely that part of your cart comes from Premium Brands Holdings.
Apart from the defensive appeal offered by Premium Brands Holdings, the company also offers strong growth and a juicy dividend. As of the time of writing, the quarterly dividend offered pays out an impressive yield of 4.2%.
Buy everyday stocks, earn income
The everyday stocks mentioned above can provide growth and income-earning capabilities for decades. They also offer significant defensive appeal, making them great long-term options for any portfolio.
In my opinion, a small position in one or all of the above would do well as part of a larger, well-diversified portfolio.
