Yahoo Finance 3 Stocks to Invest $30,000 in Right Now
Written by Demetris Afxentiou at The Motley Fool Canada
There’s no shortage of great stocks to invest in right now. Even better, many of these stocks trade at a discount and offer income-earning capabilities that can last for decades.
Fortunately, investing isn’t as hard as it sounds. Let’s start by looking at a trio of those great stocks to invest in.
You cannot go wrong here
Most investors are familiar with Enbridge (TSX:ENB). However, most investors aren’t aware of how big and diversified the company is.
Enbridge is best known for its pipeline business, and that segment generates the bulk of the company’s revenue. Part of the reason for that can be attributed to it being the largest and most complex pipeline network on the planet.
More importantly, owing to that sheer size and volume hauled, it’s also one of the most defensive operations on the market. But incredibly, that’s not all Enbridge does.
The company also operates a growing renewable energy business, as well as one of the largest natural gas utilities on the continent.
In short, Enbridge boasts multiple defensive segments that generate a growing source of revenue. That revenue allows Enbridge to invest in growth, and it pays out one of the best dividends on the market.
As of the time of writing, Enbridge offers a quarterly dividend with an insane yield of 7.40%. For those investors with $30,000 to put into Enbridge, that translates into an annual income of $2,220.
And that’s not factoring in growth. Enbridge has provided generous annual upticks to that dividend going back three decades without fail. This fact places Enbridge near the top of any list of dividend stocks to invest in now.
Speaking of defensive stocks
Utility stocks are often noted as some of the best defensive stocks on the market. There’s a good reason for that view. Utilities generate reliable and recurring revenue streams that are backed by long-term regulated contracts.
Utility service is a necessity. And unlike groceries or cell phone service, it cannot be traded down or reduced. This fact alone makes utilities incredibly stable options at the top of any list of stocks to invest in.
Furthermore, the stability and necessity that utilities provide allow them to invest in growth while paying out handsome dividends.
In the case of Canadian Utilities (TSX:CU), that dividend works out to an impressive 5.76% yield. This means investors with $30,000 to drop into Canadian Utilities can expect to earn a first-year income of just under $1,730.
And like Enbridge, Canadian Utilities has a long-established cadence of providing annual increases to that dividend.
In fact, Canadian Utilities has the longest-running streak of upticks of any stock in Canada — over 50 consecutive years, making it a Dividend King.
Banking on growth and income
I would be remiss if I didn’t mention at least one of Canada’s big banks as one of the stocks to invest in right now. And Bank of Montreal (TSX:BMO) is a great option to consider.
BMO is the oldest of Canada’s big banks, and it has paid out dividends for nearly two centuries without fail. During that incredible amount of time, the bank has also established itself inside and outside of Canada as a solid investment option.
BMO’s expansion into the U.S. is noteworthy. Specifically, the acquisition of Bank of the West propelled BMO into position as one of the largest banks in the U.S., with a presence in 32 state markets.
Turning to income, BMO’s quarterly dividend pays out a respectable 4.65% yield. Investors with $30,000 to allocate to BMO can expect to earn just under $1,400.
Throw in expected annual bumps and reinvestments, and a BMO investment today could prove lucrative over the longer term.
There are plenty of stocks to invest in
No stock, even the most defensive, is without risk. Fortunately, the trio of stocks to invest in noted above all boast defensive moats, strong growth potential and juicy yields.
In some cases, they also trade at discounted levels over the trailing two years.
In my opinion, one or all of these stocks to invest in should be core holdings in any long-term, well-diversified portfolio.
The post 3 Stocks to Invest $30,000 in Right Now appeared first on The Motley Fool Canada.
Should you invest $1,000 in Bank of Montreal right now?
Before you buy stock in Bank of Montreal, consider this:
The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bank of Montreal wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.
Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $18,271.97!*
Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 32 percentage points since 2013*.
See the 10 stocks * Returns as of 5/21/24
More reading
Can You Guess the 10 Most Popular Canadian Stocks? (If You Own Them, You Might Be Losing Out.)
How to Build a Bulletproof Monthly Passive-Income Portfolio in 2024 With Just $25,000
Fool contributor Demetris Afxentiou has positions in Enbridge. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.
2024
