There’s no shortage of great stocks to buy in October. In fact, income-seeking investors will find a great mix of superb investments to consider right now.
Here are three top stocks to buy in October for passive income.
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The stable banking giant
It would be impossible to compile a list of stocks to buy in October with a lens on passive income without mentioning one of the big bank stocks. And that bank for investors to consider right now is Bank of Montreal (TSX: BMO).
BMO is the oldest of the big banks with an incredible 200-year history. The bank is a diversified financial powerhouse with a sprawling network not just in Canada, but also in the U.S.
In fact, thanks to its acquisition of the Bank of the West a few years ago, BMO is one of the largest banks in the U.S., with a presence in 32 state markets. That provides ample growth to augment its stable and mature Canadian presence.
One of the main reasons that the big banks are superb options stems from their defensive appeal. They provide essential services that remain in demand irrespective of how the market fares.
Finally, the Canadian banking market itself is far more regulated than that of BMO’s U.S.-based peers. They are also more conservative in lending than their cross-border counterparts.
This means that while U.S.-based lenders will see sharp declines once a decade, Canadian lenders like BMO persevere and continue growing.
Turning to dividends, BMO shows investors why it is on the list of stocks to buy in October. As of the time of writing, BMO offers a respectable quarterly dividend that pays a yield of 3.6%.
Investors should also note that BMO has maintained conservative payout ratios, a decade of annual increases to that dividend, and an incredible two centuries of dividend payments.
This not only makes BMO one of the top stocks to buy in October, but any month.
Invest in a manufacturing powerhouse!
Canada is blessed with an abundance of great stocks to buy in October, and another one of those fine stocks to note is Magna International (TSX: MG).
Magna is one of the largest automotive suppliers on the planet. The company builds everything from body and seating systems to powertrains, parts, and complete vehicle assembly.
Magna counts nearly every major automaker on the planet as its customer, with over 340 manufacturing sites across 29 countries.
That global presence is only the beginning. Magna is a stellar long-term play for investors, making it one of the stellar stocks to buy in October.
Prospective investors should note that Magna isn’t only positioned in the current market of internal combustion vehicles. Magna is strategically positioned in the field of electric vehicle transition and is actively pursuing that growth.
By way of example, Magna recently secured an assembly contract for the European markets with XPENG. This offers investors future growth potential in the growing space of EVs.
As of the time of writing, Magna boasts a quarterly dividend paying 3.9%. Like BMO, Magna boasts a solid history of paying out that dividend with a well-covered payout ratio near 45%.
Let’s generate some energy (and income)
One final option for investors looking at stocks to buy in October is Suncor (TSX: SU). Suncor is the integrated energy giant of Canada. The company is the predominant force in the oil sands and operates refineries and retail gas stations across the country.
In other words, Suncor is a fully vertically integrated company, involved at every point in the process from extraction to pumping.
This gives it a unique advantage in terms of controlling costs and margins, both upstream and downstream.
As a dividend investment, Suncor offers a tasty quarterly dividend. As of the time of writing, the yield on that dividend is a respectable 4%. The company also boasts a solid decade of annual increases and has completed an impressive share buyback of $1.3 billion.
What are your stocks to buy in October?
Suncor, Magna, and BMO offer investors the complete package. They are each diversified and growing in their respective fields. They also offer defensive appeal and a juicy yield as well.
In short, if you’re looking for stocks to buy in October, you will not be disappointed from adding any of these three stellar picks.
