Tag Archives: Stock Picks

5 Growth Stocks To Have For the Long Term

Posted on by
Image Source: Canva

Do you ever get that feeling? You finish reading your research note or stock analysis for the day, and all of a sudden, you realize there are so many companies out there that offer so many different investment opportunities. It feels like there’s no way you can keep up with it all. In this article, we will be covering 5 growth stocks you can have for the long term. These are stocks that provide excellent long-term growth opportunities and also have good price dynamics. They are great stocks to hold on to for the long term because they will give you steady returns over time. But remember that investing is a riskier activity than keeping savings in banks, so do your research and only invest what you can spare.

Alphabet Inc. – Google parent company

Google, as we all know, is one of the most valuable companies of the world. It was founded by two Stanford University students, Larry Page and Sergey Brin. Brin was also the president of Alphabet Inc until he stepped down in August 2015. Alphabet Inc is now the parent company of Google and many other companies like Nest, Calico, and Verily. Recently, it has launched a number of new products, the most notable being Google Home and the new Google Pixel 2 phone.

For the long term, Google is an amazing stock to have. It is expected to generate enormous cash flows and has a long runway of growth to explore more and more lucrative businesses. It has the largest network of web-based resources and the Alphabet Inc. is one of the largest cross-platform companies in the world. This means that their products can be accessed on both desktop and mobile devices.

Amazon.com Inc. – Online retailer

Amazon is the number one online retailer in the world and it is expected to remain as such for the foreseeable future. Growing at an astonishing rate every year and generating huge amounts of cash flows, Amazon is a great stock to have for the long term. The cash flows come from the sale of goods and services and they also earn a commission from the sale of Amazon Prime subscriptions.

Amazon has proved that it can be a great long-term investment with the trust and goodwill it has generated. It has expanded rapidly across the globe and has a large base of customers. This, combined with its strong brand equity, will help it to remain strong for a long time to come.

Alibaba – Another Online retailer

Alibaba is one of the largest e-commerce companies in the world. It was founded in 1999 and was originally called Alibaba.com. Its core business is the online sale of products from manufacturers and retailers all over the world. Through its e-commerce platform, customers can purchase products from over 250 million sellers. This has helped it to become the third most valuable company in the world.

At first, it was an online marketplace but with time it has expanded into other areas like payments, cloud computing, and digital media. The growth of e-commerce has been tremendous over the years and has led to huge growth in demand for online goods. There has been a rise in online shopping over the years, and it is expected to rise further with the increased usage of smartphones and the internet. This has led to huge demand for online retailers like Alibaba and they are a good long-term stock to have.

Microsoft Corporation

Microsoft Corporation is the second-largest software company in the world. It was founded in 1975 and has been consistently growing in terms of revenue. The company provides a wide range of products and services that include operating systems, cloud computing, enterprise software, web-based applications, and others. Over the last few years, the growth of the Internet of Things (IoT) sector has been tremendous and this has led to huge demand for Microsoft products as well.

Microsoft has been expanding its cloud business and it has also been investing in artificial intelligence and other emerging technologies. The shareholders of the company can expect steady returns on their investments because of the high level of recurring revenues.

Apple Inc

Apple Inc. is one of the oldest and most valuable companies in the world. The core business of the company is selling mobile devices like iPhones, iPads, and Macs. Apple Inc. has been consistently growing in terms of revenue and has demonstrated impressive growth in terms of profit as well.

The company has demonstrated high growth rates on a consistent basis, which has led to high expectations from the investors. With the success of iPhone 7 and iPhone 8, Apple Inc. has broken several sales records. The brand value of the company has also been increasing steadily, and this will help to sustain the growth of the company for a long time to come.

Summed up

For the long term, a good stock to have is Alphabet Inc., Amazon.com Inc., Alibaba, Microsoft Corporation, and Apple Inc. These are companies that have strong brand names and are expected to generate cash flows in the future. They are also expected to have strong price dynamics making them good long term investments.

3 High Yield Canadian Dividend Stocks That Outperform The US Market

Posted on by
Image Source: Canva

The Canadian stock market has been one of the best performing markets in recent years, but not every stock offers the same returns. If you are looking to increase your long-term returns, you should consider investing in high yield dividend stocks. These stocks provide investors with stable returns, while also giving them the opportunity to earn a higher rate of return over the long run. Below we will highlight 3 high yield dividend stocks that offer investors a higher rate of return than the Canadian stock market as a whole.

TELUS Corporation (TSE: T)

Telus is a Canadian telecommunications company based in the Vancouver, British Columbia area. Telus provides various technologies and services such as internet access, voice, entertainment and healthcare among many other things. The company merged with BC Tel in 1999 before moving to their current headquarters location that same year. The company’s dividend yield is 4% at the current share price.

Enbridge Inc (TSE: ENB)

Enbridge Inc operates as an energy company. The company provides natural gas liquids pipeline and related services in North America. It has operations in the U.S., Canada, and in the Gulf of Mexico. The company’s dividend yield is 6% at the current share price.

Canadian National Railway (TSE: CNR)

Canadian National Railway operates as a rail carrier in Canada. The company provides rail services in Canada, the United States, and Mexico. It is the backbone of Canada’s economy. Its dividend yield is around 2% at the current share price.

Conclusion

High yield dividend stocks offer investors a stable source of income. If you are looking for a better return on your investment, you should consider investing in these high yield dividend stocks. These stocks have increased dividend payouts for decades, with very little volatility along the way. These stocks have proven to be very stable in the long term, allowing investors to enjoy consistent returns without any volatile swings in price.

5 Best Index Funds To Buy in The Coming Recession

Posted on by
Image Source: Canva

During a recession, the stock market as a whole will likely decline. But that doesn’t mean you have to miss out on the gains of a market recovery. That’s where index funds come in. These funds track a specific set of stocks and replicate the performance of an entire market, not an individual stock. These funds are among the easiest ways to invest your money in the coming recession. Here are five top index funds that you can buy now to generate income during a downturn.

Vanguard S&P500 Index Fund (VFIAX)

VFIAX is the perfect solution for investors who want to closely track the stocks that make up three-fourths of the US Stock Market. That’s because owning VFIAX would be like being in control of a conglomerate worth more than $14 trillion!

The Total Stock Market Index fund (VTSAX)

VTSAX gives you broad U.S. equity exposure, owning a small piece of 4100 different stocks – to see more than just the companies at the top of your company’s S&P 500 index, VTSAX is for you!

The Vanguard International Index Fund (VTIAX)

This is a fund that invests in the stock market outside of the United States, including emerging markets, Europe, Pacific Rim countries (including Japan), Middle East nations and North American companies. It has top holdings from semiconductors to video games like Nintendo to Alibaba’s e-commerce site.

The Vanguard Global Market Index Fund (VTWAX)

If you were to take all these different things from my previous paragraph, put them together and then add emerging markets into the mix…that’s this. It gives you exposure throughout the global stock market with a portfolio of nearly 10,000 stocks. This is as diversified as it can possibly get…

The Vanguard Real Estate Index Fund (VGSLX)

This is an investment fund that invests in a mixture of REITs, which are companies that own and operate commercial and residential real estate.

The Best ETFs for May 2022 (For Canadians)

Posted on by
Image Source: Canva

Do you need exposure to the global stock market? If so, you’re in the right place. We’ll explain the best global stock ETFs to have for long-term Canadian investors.

Vanguard Total Stock Market Index Fund ETF (VTI)

VTI is a diversified fund. It contains holdings in virtually every sector of the US market and has exposure to small-cap stocks, which are more volatile than mid- or large-caps. It also has exposure to systemic risk, the risk that comes from investing in the entire market due to its size and complexity. A larger downturn in US economy or world economy means potential devaluation of VTI. The fund has a relatively small expense ratio of 0.03%.

Invesco NASDAQ 100 ETF (QQQM)

The Invesco QQQ ETF offers cost-efficient, liquid exposure to a tech heavy basket of large cap companies. It is also not subjected to any stock picking issues as shares increases in price without the active involvement of investors. The expense ratio of this ETF is 0.20%.

Schwab US Dividend Equity ETF (SCHD)

Investors who want dividend-paying stocks might consider the Schwab US Dividend Equity ETF. This ETF is designed to track the S&D Mid-Large Stock Index, which is a subset of the S&P 500 index that has dividend-paying stocks. This index is designed to have dividend-paying stocks. Besides dividends, an important quality of a stock is its growth potential. Growth stocks are normally riskier than value stocks. The ETF will help investors stay diversified without worrying about the risk involved with growth stocks. For this reason, growth investors might like this ETF.

Vanguard Total International Stock Index Fund (VXUS)

If you want exposure to global stocks, you might consider the Vanguard Total International Stock Index Fund. This fund is designed to track the FTSE All-World Ex-US Index. This index is designed in such a way that it excludes US stocks. Some investors might like this because they want to avoid US stocks and can’t do so through US index funds. The expense ratio of this fund is only 0.06%, making it one of the least expensive global stock ETFs.

Vanguard FTSE Emerging Markets All Cap Index ETF (VEE)

Vanguard FTSE Emerging Markets All Cap Index ETF seeks to track the performance of emerging markets by investing in large, mid and small cap stocks. These types of investments are made within countries that weren’t on the radar as much 10 years ago. Vanguard may invest directly or indirectly into these companies with their funds raised from investors who need international diversification for retirement savings purposes. The expense ratio of this ETF is 0.23%.

Vanguard FTSE Canada All Cap Index ETF (VCN)

This Vanguard fund tracks the FTSE Canada All Cap Index, which is a large- and mid-cap index that measures investment return in Canada. It invests primarily in stocks of Canadian companies with market capitalization greater than $3 billion. The expense ratio on this ETF is only 0.05%.

The Bottom Line

Investors who want exposure to the global stock market can choose from a variety of ETFs. Some ETFs focus on a region or country, while others are more broad-based. Before you choose an ETF, it’s important to understand the concept of global diversification. By investing in several companies from various countries and investing in a broad-based index, you can achieve a reasonable level of exposure to the global stock market.

The Best Dividend Stocks to Buy Now: May 2022 Edition

Posted on by
Image Source: Canva

The U.S. stock market has increased in value by nearly 50 percent over the past year. But not all stocks offer the same return. If you’re looking for a high-yielding dividend stock, you’ll want to check out this list of the best dividend stocks to buy now.

Hershey Co (NYSE: HSY)

Dividend-paying stocks are a great way to build wealth, and Hershey Co. (NYSE: HSY) is one of the best examples of this. The chocolate candy and cocoa products company puts out a steady stream of income, with annual dividends that average $2.88 per share. And that’s not even counting the company’s $1 unwinding credit when the Federal Reserve begins to shrink its balance sheet later this year. However, Hershey’s valuation doesn’t reflect its income stream. At just 11.6 times earnings, Hershey is a bargain. And with its dividend payment growing, Hershey is positioned for future growth.

Starbucks Corporation (NASDAQ: SBUX)

Dividend investors might be surprised to learn that Starbucks Corp. (NASDAQ: SBUX) is one of the best dividend stocks to buy. The coffee and snacks company has increased its dividends every year since the 1960s, and it’s been paying dividends continuously since the 1970s. In fact, Starbucks expects to continue growing its dividend through the end of the decade. Based on its expected growth rate, investors can expect a dividend payout of $2.78 per share by the end of 2022. That’s a yield of 3.8 percent, which is above the industry average. But Starbucks is also a bargain given its growth. At just 16.6 times earnings, the stock is priced for future growth. Even better, Starbucks stock is a great long-term investment. As long as you can hold on through the inevitable short-term swoon, it’s a great way to build wealth.

Scotts Miracle-Gro Co (NYSE: SMG)

If you want to short-term hedge your portfolio with a high-yielding dividend stock, look no further than Scotts Miracle-Gro Co. (NYSE: SMG). This lawn and garden products company has increased its dividends by more than 50 percent over the past year. If you can buy shares now at less than the dividend yield of 3.5 percent, you’ll increase your wealth by selling them soon. But if you can buy shares at the higher price of 6.7 times earnings, you’ll still increase your wealth by owning them long term. However, the company’s dividend is surging, and it’s expected to grow by an even higher 25 percent over the next year. That means you can buy shares now and sell them before the dividend growth rate slows down.

Exxon Mobil Corp (NYSE: XOM)

If you want to invest in a mature company with a proven track record of growth, look no further than Exxon Mobil Corp. (NYSE: XOM). The oil and gas exploration and refining company has increased its payout every year for the past 40 years, and it’s expected to do so for a few more years to come. Exxon’s dividend yield is also high, at 3.4 percent. It’s a great way to hedge against a market downturn, and it’s also a great long-term investment. The company’s dividend is expected to grow by an average of 4.8 percent over the next 10 years, and the dividend is a safe and steady source of income.

What’s left

There are plenty of other good dividend stocks out there. However, these are among the best dividend stocks to buy now because they’re high-yielding, mature companies with a proven track record of growth. And they’re also bargains compared to the overall market.