Are you looking for some of the best stocks to invest in right now? The market has plenty of great options for investors to consider, irrespective of whether the goal is income, growth, or both.
Here’s a look at some of the very best stocks to invest in with a $50,000 portfolio.
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Start with a strong base
The first option for investors to look at is Fortis (TSX: FTS). Fortis is a utility stock that offers stable growth, juicy dividends and a very defensive business model.
That business model is supported by long-term regulated contracts, which provide the company with a recurring revenue stream that allows it to invest in growth and pay out a handsome dividend.
As an income producer, Fortis offers investors a quarterly dividend that currently yields 3.80%. Adding to that appeal, Fortis has provided annual upticks to that dividend going back over 50 consecutive years without fail.
For a $50,000 investment in Fortis, investors can expect to generate nearly $1,900. Keep in mind that investors who aren’t ready to draw on that income just yet can choose to reinvest it until needed. This will allow that eventual income to continue growing.
Between the growing dividend, defensive appeal and stable revenue generation, it’s hard not to see Fortis as one of the best stocks to invest in right now.
Big bank = bigger income?
Another compelling option for investors seeking the best stocks to invest in right now is to invest in Canada’s big bank stocks. The big banks can offer stellar growth and income-earning capabilities while also providing some defensive appeal.
The big bank for investors to consider right now is Bank of Nova Scotia (TSX: BNS).
As to what makes Scotiabank a better option than its big bank peers, it comes down to checking all the boxes.
Scotiabank isn’t the largest of the big banks, but it is the most international. And that larger international presence, particularly in high-growth developing markets, has propelled the bank forward in recent years.
Those stellar results have helped the bank to invest in additional growth, such as Scotiabank’s announced agreement to acquire a stake in U.S.-based KeyCorp last year.
Finally, Scotiabank offers one of the better-paying yields among its peers. As of the time of writing, the bank’s quarterly dividend pays out an insane 6.96% yield.
Using that same $50,000 investment example from above, investors can expect an income of nearly $3,000 from that investment. And like Fortis, Scotiabank has an established history of providing annual upticks to that dividend.
In short, it would be hard not to see Scotiabank as one of the best stocks to invest in right now.
Generate a recurring income stream
One of the absolute best things to do with $50,000 is to establish a recurring passive-income stream. Traditionally, that means owning a rental property.
Unfortunately, in recent years, that’s become an unrealistic goal for most. Rising prices, a lack of housing and sky-high interest rates have pushed most would-be buyers outside of the market.
Fortunately, this next member of the best stocks to invest in right now club offers an alternative.
RioCan Real Estate (TSX: REI.UN) is one of the largest real estate investment trusts (REITs) in Canada. RioCan’s portfolio comprises nearly 200 properties located primarily in metro markets across the country.
A growing portion of those properties are mixed-use residential properties, which can provide a recurring monthly income stream, much like a landlord collecting rent.
The key differences from owning a rental property, however, is the lack of a down payment, taxes and tenants. The risk is also considerably smaller as it’s spread across hundreds of units.
RioCan’s monthly distribution provides a tasty yield of 6.59%, meaning that an investment of $50,000 will generate a monthly income of approximately $275. Remember, that’s without property taxes or a mortgage.
The best stocks to invest in now
No stock, even the most defensive, is without risk. That’s why diversifying your portfolio is so important.
Fortunately, the trio of options mentioned above can offer a juicy income with some defensive appeal.
In my opinion, one or all of these best stocks to invest in should be core holdings in any long-term portfolio.
