Yahoo Finance The Best Stocks to Invest $2,000 in Right Now
Written by Demetris Afxentiou at The Motley Fool Canada
There’s no shortage of great stocks to invest in on the market. In fact, some of those stocks trade at decent discounts right now and can provide a growing income for decades. And even better, investors can build a portfolio of these best stocks with just $2,000 to start.
Here’s a look at some of those best stocks to line your portfolio with.
A top bank that trades at a hefty discount
Most investors are aware of Toronto-Dominion Bank (TSX:TD), but few realize TD’s massive growth potential and the opportunity that currently exists.
TD is the second-largest of Canada’s big banks with a massive domestic segment that provides a growing and reliable revenue stream. But few investors may realize that TD has a growing operation in the U.S. market.
In fact, TD’s branch network in the U.S. (which stretches from Maine to Florida) has more branches there than it does here at home. That segment provides nearly one-third of the bank’s overall revenue, accounting for $580 million in the most recent quarter.
In recent months, TD’s stock price has dropped. Year-to-date, the bank stock is down nearly 7%, making it a prime candidate to buy at a discount among investors looking for the best stocks to buy.
As of the time of writing, a $2,000 investment in TD works out to just over 25 shares. That’s enough to kickstart some growth through reinvesting the tasty dividend that pays a 5.1% yield.
Buy some defence along with income growth
Investors kicking off their portfolios should also consider Fortis (TSX:FTS) as one of the best stocks to buy with $2,000.
Fortis is a massive utility stock that boasts operations across Canada, the U.S., and the Caribbean. The facilities operated by Fortis generate a reliable revenue stream that is backed by long-term regulated contracts.
That stability makes Fortis one of the most defensive and stable investments on the market. It also allows the company to invest in growth initiatives and pay out a generous quarterly dividend.
As of the time of writing, Fortis pays out a yield of 4.3%. Given the current stock price tipping $55, that means investors who drop $2,000 can start with just over 36 shares. Like TD, that’s a great start to any portfolio, while providing an avenue for reinvested dividends to grow.
Speaking of growing dividends, prospective investors should take note of another perk of investing in Fortis. The company has provided annual upticks to investors for 50 consecutive years and plans to continue that tradition.
This makes Fortis one of only two dividend kings on the market, and one of the best stocks to buy now.
Take advantage of the opportunity
A third option for investors looking at some of the best stocks to buy is Telus (TSX:T). Telus is one of Canada’s big telecoms. The telecoms, like utilities and banks, offer investors both stable revenue growth and a generous dividend.
In the case of Telus, that stable revenue comes thanks to the company’s subscription-based offerings. Specifically, that includes wireline, wireless, internet, and TV subscription services.
Interestingly, both the internet and wireless segments have become more important, if not a necessity in the years following the pandemic. By way of example, in the most recent quarter, Telus reported its strongest Q1 on record. This includes both 45,000 net mobile device activations and 30,000 internet customer additions.
Turning to income, Telus offers a juicy quarterly dividend that boasts an appetizing 7.2%. Part of the reason for that swollen yield is because Telus trades down 8% year-to-date.
Like TD, this makes it an excellent time to pick up one of the best stocks on the market at a discounted rate.
The best stocks to buy
Building out a portfolio takes time. It also takes considerable patience. All three of the stocks mentioned above can provide investors with solid income and growth potential. This not only makes them some of the best stocks to buy, but also intriguing options to line any well-diversified portfolio.
Buy them, hold them, and watch your portfolio (and future income) grow!
The post The Best Stocks to Invest $2,000 in Right Now appeared first on The Motley Fool Canada.
Should you invest $1,000 in Fortis right now?
Before you buy stock in Fortis, 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 Fortis 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 $16,110.59!*
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 29 percentage points since 2013*.
See the 10 stocks * Returns as of 6/20/24
More reading
Fool contributor Demetris Afxentiou has positions in Fortis and Toronto-Dominion Bank. The Motley Fool recommends Fortis and TELUS. The Motley Fool has a disclosure policy.
2024
