EIF:CC - Ready to Invest With $2000? 3 Stocks for February 2024
2024-02-01 21:00:00 ET
Now that February is here, it’s time to look ahead to not just February, but the rest of 2024—specifically, investors who are ready to invest in one or more great stocks for the long haul.
Here’s a look at some of those stocks you may be ready to invest in now—even if you only have $2,000 to start with.
Generate growth through reinvestments
Some of the best long-term options on the market right now are dividend stocks that can provide growth through reinvestments. One such option every investor needs to know about is Fortis ( TSX:FTS ).
Fortis is one of the largest utilities in North America. Utility stocks generate a stable and recurring revenue stream that is backed by long-term regulated contracts. Those contracts and the predictable revenue they generate allow Fortis to invest in growth and pay a generous dividend.
As of the time of writing, that quarterly dividend pays out a yield of 4.38%. This means that investors with $2,000 to drop into Fortis will generate an income of just over $87. That’s not enough to retire on, but it is enough to get an additional stock each year through reinvestments.
Moreover, if prospective investors keep up that annual $2,000 contribution, they could have a sizable nest egg within a decade.
Oh, and perhaps best of all, Fortis has provided annual upticks to that dividend for over 50 consecutive years. That makes the stock one of only two Dividend Kings in Canada.
In short, if you’re ready to invest, Fortis could be a great place to start.
Now add in some monthly income potential
If a monthly income stock is more to your liking, investors who are ready to invest may want to consider Exchange Income ( TSX:EIF ). Exchange Income owns a basket of over one dozen subsidiary companies that generate cash.
Those subsidiaries are broadly segmented into aviation and manufacturing buckets. Incredibly, all of Exchange’s subsidiaries share common themes. They all generate free cash, and they all provide a necessary function where there is limited, if any, competition.
For example, on the aviation side of the company, there’s a subsidiary that provides passenger and cargo services to Canada’s remote north. Turning to manufacturing, there’s a subsidiary that provides cell tower installation services.
That not only makes Exchange a great defensive pick for those who are ready to invest, but it also sets up Exchange’s lucrative dividend.
The company offers a tasty 5.62% yield, which is distributed monthly. Using that same $2,000 example, investors can expect a monthly dividend just shy of $10. Again, the focus for those who are ready to invest now should be on the future income that comes through reinvestments and growth.
And like Fortis, Exchange provides investors with annual bumps to that dividend. Exchange has continued that cadence, boasting 17 increases over the past 19 years.
Ready to invest? Now add something tasty to your portfolio
Some of the greatest stocks to buy are those that provide a necessary service that we interact with daily. Metro ( TSX:MRU ) is a great example of that.
Metro is one of the largest grocers in Canada, boasting an extensive network of stores focused around Ontario and Quebec. The company also owns an overlapping pharmacy network, primarily through its Jean Coutu brand.
As to why Metro is one of the stocks for investors who are ready to invest, there are several reasons to note.
First, Metro provides a necessary and well-diversified service. This includes its growing network of different brands and products. This makes it an excellent defensive option to consider.
Second, while Metro is a great income stock to hold (more on that in a bit), it’s also a superb growth pick. In fact, over the past decade, the stock has soared over 230%, handily beating the market.
Finally, we have Metro’s dividend. The 1.71% yield is lower than the other two companies noted above, but Metro has provided annual upticks without fail for nearly three decades. In other words, it’s a great buy-and-forget candidate, even for those investors with $2,000 to drop.
The post Ready to Invest With $2,000? 3 Stocks for February 2024 appeared first on The Motley Fool Canada .
Fool contributor Demetris Afxentiou has positions in Fortis. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy .
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