Here’s an Easy, Balanced, 4-Stock Portfolio for Any Investor

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Finding the right mix of investments takes time. Fortunately, it doesn’t have to be difficult. There are plenty of long-term options in the market, helping seasoned and new investors create an easy, balanced, four-stock portfolio.

Here are some stocks to add to your portfolio

Table of Contents

Role #1: Defensive Choice

2022 is a volatile year and the need to add one or more defensive stocks to your portfolio has never been greater. That’s part of the reason why any simple, balanced, four-stock portfolio should be the first stock Fortis (TSX:FTS)

Fortis is one of the largest utilities on the continent. The company operates in 10 operational regions spanning across Canada, the United States and the Caribbean.

Utilities operate one of the most defensive business models on the market, based on long-term, regulated contracts that often span a decade or more. The result is a steady and recurring source of revenue that the company can then use to fund growth and deliver Juicy. Dividends.

Fortis has taken an aggressive stance on growth, which sets it apart from many of its utility peers. As a result, Fortis has grown significantly over the years to the delight of shareholders.

That growth helps fund Fortis’ quarterly dividend. That dividend yield is currently 4.14%. But above all, Fortis has given annual hiatuses to that dividend for 49 consecutive years.

Role #2: Balance Bank

Canada’s big banks are among the best long-term options in the market. They offer a reliable source of income backed by solid international growth, handsome dividends and a strong domestic segment.

A great bank to consider today Bank of Montreal (TSX:BMO) BMO is Canada’s oldest dividend-paying company, paying dividends regularly for nearly two centuries. Today, that dividend yield is 4.63%.

In terms of growth, BMO is focusing on the US market. BMO’s current acquisition of California-based Bank of the West screams growth. Once completed, the deal will expose BMO to two dozen states and add 500 branches to its US network.

Additionally, BMO is currently trading at a discount to much of the market. The current price-to-earnings (P/E) is just 6.18, making it a heavily discounted option right now.

Role #3: Growth comes in all forms

Adding a growth stock or two for yourself A well-diversified portfolio Always a good idea. A growth stock investors should consider buying now Dollarama (TSX:DOL)

Dollarama operates Canada’s largest dollar store network, with locations in every province. The company has an international operation in Latin America under the Dollar City brand. So, what makes Dollarama a great candidate for your easy, balanced, four-stock portfolio?

Dollar stores like Dollarama thrive during market downturns. In fact, unlike most markets, Dollarama is up 25% year to date. That’s thanks in part to Dollarama’s unique pricing model.

Dollarama items cost in fixed points up to $4. Many low-priced items are bundled together under one price point, providing shoppers with more value.

Despite the stock’s stellar performance in 2022, Dollarama remains an excellent long-term pick.

Stock No. 4: Telecom

B.S.M (TSX:BCE) is not one of Canada’s largest telcos. This is the last stock for your simple, balanced, four-stock portfolio.

In addition to offering a regular complement of subscription-based services, BCE also has a large media division. That division provides another revenue stream for the company, providing some element of diversification.

Telecoms are incredible defensive investments, and that defensive appeal has only grown since the pandemic began. There are still many people who work and study remotely, which has necessitated the need for a fast and reliable internet connection. The same sense of need applies to mobile device connections

The result is a solid revenue stream that enables BCE to pay a solid quarterly dividend, which it has done regularly for more than a century. That yield is a generous 6.23%, making BCE a great defensive choice with buy-and-forget appeal.


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