Forget Dogecoin: 1 Canadian Stock to Buy in May 2021
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The cryptocurrency industry ramped up in 2021. Investors sought out growth stocks in 2020, and were disappointed when a pull back came with 2021. However, cryptocurrency like Dogecoin seemed to be the solution, with investors like Elon Musk picking up cryptocurrency. However, while Dogecoin and its rally is luring momentum investors seeking quick riches, there are Canadian stocks out there that offer sustained growth.
Here are the Fool, we recommend the latter (obviously). Sure, there are going to be a lot of people that get rich on cryptocurrency. You know what else? Those people are already rich, so are likely a) losing money in other places and b) have a huge team of financial analysts primed to buy up Dogecoin at its best. Bubbles float throughout this market, and I fear the cryptocurrency one might soon burst.
Have you ever wished that your stock portfolio could beat the
TSX Index? I know I have (and still do perhaps). Amazing stock pickers like Warren Buffett and Charlie Munger have done it year after year. Yet, any economics professor or investment advisor will probably tell you it is impossible. Rather, they might suggest, just buy a diverse portfolio of index funds and ride the market. Certainly, this is not a bad approach for many investors. That’s true enough, as owning an index is a great way to safely and steadily build wealth over time without too much work.
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Investors planning to build a portfolio that would help them get a solid passive income per month could consider buying top-quality dividend stocks listed on the
TSX Index. While several TSX stocks have been paying dividends for a long period, I am focusing on companies that have resilient cash flows. Further, these companies could continue to bolster their shareholders’ returns uninterruptedly.
Furthermore, these Dividend Aristocrats are trading under $100.
Enbridge
Enbridge(TSX:ENB)(NYSE:ENB) should be a part of your passive-income portfolio. Besides paying and increasing its dividends for a very long period, Enbridge stock offers a stellar yield of over 6.8%. The energy infrastructure company is paying dividends for 66 consecutive years. Furthermore, its annual dividends have grown by a CAGR of 10% for 26 years in a row.
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Over the past year, Canadians have had a major opportunity to grow their savings, as the entire market recovered from the market pullback caused by the pandemic. Canadians have been taking advantage of cheap stocks to buy and the tax-free nature of their registered accounts, like the Tax-Free Savings Account (TFSA). This has led to some big gains for many investors.
When the market is recovering from a pullback, as it has over the last 12 months, it’s a lot less difficult to find stocks that can grow your money. After a year where so many stocks have performed so well, now most are back to fair value, which means it’s all about long-term investing.
BCE(TSX:BCE)(NYSE:BCE) are two of the top Canadian telecom dividend studs that investors seem split over. The former has done a magnificent job of navigating the rough waters of 2020, and its growth profile looks far better. Still, the latter telecom stock has a richer dividend yield. But should that be the deciding factor for Canadian investors?
At the time of writing, Telus sports a solid 4.8% yield, while BCE commands a juicy 6.1% yield. While most income investors would immediately reach for those beaten-down BCE shares, I think that most investors seeking above-average total returns (that account for capital appreciation and dividends) would be best off in Telus stock at these levels.