Business & Investment

New Investors: Three Dividend Stocks to Start in 2021

New investors in equity investments may be overwhelmed. There is a lot to learn.I don’t know which stock to invest in, or How to manage your portfolio.. You are afraid to lose money.

I’m here to experience it all and give you some guidance.

Take one inventory at a time. I think it’s easier for new investors to invest in quality dividend stocks that provide decent dividend income and a sense of security. These strains are less volatile and help you learn ropes.

Currently, they are at least affordable. Therefore, it can be profitable, especially if you have an investment period of at least 3-5 years. It’s always a good idea to have a long investment period, as stock prices tend to rise in the long run and can survive market corrections.

Get a 5.7% yield on this dividend stock

TC Energy (TSX: TRP)(NYSE: TRP) Inventories are currently very affordable and could rise by about 22% over the next 12 months. At the time of writing, it was $ 56.26 per share, with a yield of 5.76%. I also like the increase in dividends in March.

This will be the 21st consecutive year of dividend increases. Management believes a dividend increase of about 8% is appropriate. Therefore, with a purchase today, the effective initial yield will be approximately 6.2%.

This is about 140% higher than what the Canadian stock market offers and 265% higher than what the best five-year GIC rates offer.

TC Energy operates with a low-risk business model. Its cash flow is supported by regulated assets and long-term contracts. In addition, we have a $ 25 billion capital plan by 2023 to support future growth. As a result, we can expect further dividend growth in the future.

Fortis inventory is also good value

Fortis (TSX: FTS)(NYSE: FTS) Stocks are another Canadian dividend aristocrat that you can trust with your hard earned money. This is backed by a history of dividend increases for 47 consecutive years, which is easily one of the longest dividend growth sources. TSX!!

Regulated utility stock is a good value at the moment. At the time of writing, it was $ 52.09 per share, with a yield of 3.88% and a 12-month upside potential of about 14%.

Its dividends are protected primarily by the very stable returns from its diversified portfolio of transmission and distribution assets. People need to use gas and electricity throughout the business cycle. In addition, management is careful to maintain a sustainable payout ratio.

Therefore, you can trust that Fortis stock dividends are safe.

Another stable dividend stock

Canadian Apartment Property REIT (TSX: CAR.UN) or CAPERIT Another stable dividend stock You can find out. We have a leading portfolio of home rental apartments and townhouse suites in the major city centres of Canada, the Netherlands and Ireland, as well as manufactured home community sites. Approximately 43% of CAPREIT’s portfolio is located in the Toronto and Greater Toronto areas.

Dividend stocks provide an essential product — everyone needs a place to live. If you don’t own the place, you are renting it. As a result, investment funds (FFOs) (that is, REITs’ global returns) are very stable and growing over the long term. Since 2006, the decrease in FFO per unit has been only one year, only a 1% decrease.

At the time of writing, it was $ 51.31 per share, with a yield of 2.69% and a 12-month upside potential of about 12%.

Interestingly, dividend stocks are currently offering a 5% discount on stocks purchased from cash distribution reinvestments.

If you’re still uncertain about your investment in CAPREIT, you can wait for the full-year 2020 results to be released on February 24th.

Stupid takeaway

There is! TC Energy, Fortis shares and CAPREI T are some of TSX’s most trusted dividend shares. They are all trading with good reviews today. So it’s a good idea to take a closer look as a starting point for a rewarding equity investment journey!

New investors should also consider these best stocks in a dip.

10 Best Stocks to Buy This Month

Ian Butler, a well-known Canadian investor, has nominated 10 shares for Canadians to buy today. So if you’re tired of reading about getting rich in the stock market, today may be a good day for you.
The Motley Fool Canada offers 65% off the list price of the best stock selection services, plus a full money-back guarantee on payments for the services. Click here to find out how to take advantage of this.

Click here for more information on today.


Stupid contributor Cain It owns shares in CDN APARTMENTUN and TC Energy. Motley Fool recommends FORTIS INC.

New Investors: Three Dividend Stocks to Start in 2021

https://www.fool.ca/2021/01/24/new-investors-3-dividend-stocks-you-can-start-with-in-2021/ New Investors: Three Dividend Stocks to Start in 2021

Back to top button