Finding that perfect portfolio mix that balances both income and growth can be a powerful means of reaching a comfortable retirement.
Fortunately, there are plenty of great stocks to help accomplish that goal. They include this trio of options that can supercharge your portfolio for both income and growth, even with just $15,000 to start.
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How to look at the $15,000 portfolio
To be clear, no investment is going to provide for your retirement needs on $15,000 alone.
That’s why the goal today is to establish a quick and easy portfolio that will generate a healthy income over the long term, with a starting point of $15,000.
And yes, it can be done, and quite easily, too!
Let’s begin with a high-income, defensive pick
To start that portfolio for both income and growth, the first stock to choose is Telus (TSX: T). Telus is one of Canada’s big telecom stocks, meaning that it generates a reliable revenue stream that has some defensive appeal.
More importantly, unlike its other telecom peers, Telus lacks a media segment yet still pays a sustainable quarterly dividend.
As of the time of writing, Telus offers a juicy 7.6% yield, making it one of the best dividends on the market. If that’s not enough, Telus has an established cadence of providing semi-annual bumps to that dividend going back two decades.
A $4,000 investment in Telus to kickstart that portfolio for income and growth will earn just over $300, which is enough to generate a few shares each quarter through reinvestments alone.
In short, that can provide growth today and income generation for tomorrow.
Sprinkle in 50 years of dividend increases
Few businesses can come close to the defensive appeal of a utility stock. Utilities generate a reliable income backed by long-term regulated contracts.
That reliable revenue stream allows the utility to invest in growth initiatives while also paying out a respectable dividend.
In short, it’s portfolio building on autopilot, which caters nicely to those investors seeking both income and growth.
And what is the utility stock for investors to consider right now? That would be Fortis (TSX: FTS), which is one of the largest utilities on the continent.
The company also boasts a stable 3.8% quarterly dividend, for which Fortis has provided annual upticks for over 50 consecutive years without fail.
A $6,000 investment in Fortis can provide several shares through reinvestments, much like Telus.
Consider this stock as a final option to supercharge your portfolio
REITs are some of the best long-term investments on the market. They also provide a solution to would-be landlords priced out of the white-hot real estate market.
RioCan Real Estate (TSX: REI.UN) is an intriguing pick for investors looking to get into the business of being a landlord, without actually chasing down tenants and taking out a mortgage.
RioCan boasts a growing portfolio of mixed-use residential properties that can provide a source of growing, monthly income, much like a landlord.
The one key difference, though, is that reinvesting in RioCan can provide that juicy monthly income while spreading out potential risk across hundreds of units rather than a single rental.
Speaking of monthly income, investors looking to establish a portfolio for both growth and income can take solace in RioCan’s juicy 6.6% yield.
Following that same principle of growth today and income tomorrow, allocating the remaining $5,000 from our initial $15,000 towards RioCan will provide a monthly income of just under $30.
That’s enough to generate just shy of two new shares each month through reinvestments.
Invest today, and both income and growth will follow
No stock is truly without risk. That’s why the importance of diversifying can’t be understated.
Fortunately, the three stocks mentioned above boast some defensive appeal in addition to their juicy dividends.
And across all three stocks, that initial $15,000 investment has the potential to generate a handsome income over the longer term, while providing some growth through reinvestments to reach that goal.
In my opinion, one or all of the above should be core holdings for any well-diversified portfolio.
Buy them, hold them, and watch your future income grow.
