How diversified is your portfolio? Adding the right mix of great stocks to your portfolio can provide growth and income-earning potential that lasts decades. And there’s more than a few top Canadian stocks to help meet that goal.
Here’s a rundown of what those top Canadian stocks to buy are.
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Go on, be a landlord!
When investors think of generating an income, one of the first things that comes to mind is owning a rental property. Unfortunately, surging home prices and interest rates have priced most would-be investors out of the market.
That’s where RioCan Real Estate (TSX: REI.UN) can help bypass those huge upfront costs.
RioCan is one of the largest REITs in Canada with a portfolio of nearly 200 sites scattered primarily across Canada’s metro markets. RioCan’s portfolio hosts a variety of different property types, including mixed-use residential and commercial retail locations.
The mixed-use residential locations represent a unique opportunity for investors looking at some of the Top Canadian stocks, particularly when compared to owning a rental unit.
That’s because owning RioCan allows investors to diversify across hundreds of units rather than owning a single rental property. It also allows investors to collect a monthly distribution, much like a landlord collecting rent.
As of the time of writing, RioCan offers a monthly distribution that earns a juicy 5.7% yield.
Not only does this make RioCan one of the top Canadian stocks to buy, but it also makes it a great buy-and-forget option for any long-term portfolio.
Have you considered a big bank?
Canada’s big bank stocks are often regarded as some of the top Canadian stocks to own. That’s because they offer stable, growing revenue, ample long-term growth potential, and juicy dividends.
Investors seeking one of those top Canadian stocks to purchase should take a close look at TD Bank (TSX: TD). TD has the second-largest of the big banks, boasting a massive domestic branch network at home, as well as a growing presence in the U.S. market.
That U.S. exposure represents TD’s primary growth focus, where that 1,100-plus branch network extends across the East Coast from Maine to Florida.
That international segment provides an alternative to Canada’s stable domestic segment while also fueling TD’s generous quarterly dividend.
That dividend is another reason why TD is one of the top Canadian stocks to consider. The bank has been paying out those dividends for nearly two centuries without fail and currently offers an impressive 4% yield.
The bank has also provided annual upticks to that dividend for years without fail.
Supercharge your income
Across the list of top Canadian stocks to invest in is this final pick, Telus (TSX: T). Telus is one of Canada’s big telecoms. Telecoms generate a reliable and recurring revenue stream thanks to their very defensive, yet lucrative, subscriber-based business model.
In the case of Telus, the company offers wireline, wireless, TV and Internet services to subscribers across the country. Those services have become increasingly defensive over the past few years, and Telus boasts one of the best churn numbers among the big telecoms.
Turning to dividends, Telus really shines. Telus offers a quarterly dividend that currently boasts a lucrative 7.8% yield. This makes Telus one of the best-paying dividend stocks on the market.
Adding to that appeal is the fact that Telus has provided investors with better than annual bumps to that dividend going back well over a decade. Like the other stocks on this list, this means that Telus is a great buy-and-forget candidate for long-term growth.
Telus also offers investors significant growth potential. The company is investing heavily in expanding and upgrading its existing network. Specifically, Telus recently outlined a massive $70 billion plan for those updates that spans the next several years.
Between the defensive nature of a telecom, impressive growth potential, and the insane quarterly dividend, Telus is one of the top Canadian stocks that is just too hard to ignore.
Top Canadian stocks to buy for any portfolio
Telus, TD Bank, and RioCan are superb long-term investments that can provide a healthy income over longer periods, while also offering some defensive appeal.
In my opinion, one or all of these stocks should be core holdings in any well-diversified portfolio.
