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Beginner Investors: 4 Top Canadian Stocks for 2024

The Motley Fool ·  08/28 17:00

Did you know that around 45% of beginner investors choose to start with ETFs (Exchange-Traded Funds) rather than investing directly in stocks? It's a smart move, especially when you're just starting out and looking for a balanced approach to investing. That's because they offer an easy way to diversify a portfolio without needing to pick individual stocks. However, if you're ready to take the next step, beginner investors would be wise to consider these four stocks. These blue-chip winners are offering long-term gains, at a strong price.

Nutrien

Nutrien (TSX:NTR) is a strong stock for beginner investors due to its solid foundation in essential industries and reliable performance even during challenging times. As one of the world's largest providers of crop inputs and services, Nutrien benefits from global demand for fertilizers and agricultural products. With a market cap of over $32 billion and significant presence in North America and Australia, Nutrien's operations are well-diversified. This makes it a stable choice for those just starting their investment journey.

Additionally, Nutrien's attractive dividend yield of around 4.6% at writing offers beginner investors a steady income stream. This is always a plus when learning the ropes of the stock market. The company's focus on reducing operating costs and enhancing cash flow further solidifies its position as a long-term, reliable investment. For those looking to build a strong portfolio with a mix of growth and income, Nutrien provides a balanced option.

BAM stock

Brookfield Asset Management (TSX:BAM) is another strong stock for beginner investors. With approximately $1 trillion in assets under management (AUM), BAM is one of the world's leading alternative asset managers. It focuses on infrastructure, renewable energy, real estate, and private equity, creating a diversified portfolio that helps mitigate risk. Plus, the company's consistent fee-related earnings and distributable earnings growth demonstrate its ability to generate reliable income.

Additionally, BAM's forward annual dividend yield of 3.8% provides a steady stream of income, making it an attractive option for those seeking both capital appreciation and regular payouts. With a strong track record of raising capital and deploying it into high-quality assets, Brookfield has positioned itself as a leader in essential service businesses. For beginners looking to dip their toes into the stock market, BAM offers a well-rounded, stable option that promises growth and income in the years to come.

Magna stock

Magna International (TSX:MG) is a solid choice as well for beginner investors looking to dip their toes into the stock market. As one of the world's largest automotive suppliers, Magna boasts a diversified portfolio that includes everything from body exteriors and powertrain systems to complete vehicle assembly. This diversification helps cushion the company against market fluctuations, making it a stable option for new investors. Plus, with a forward annual dividend yield of 4.6%, Magna offers an attractive income stream, which is always a plus when you're just starting.

Another reason Magna is appealing for beginners is its strong financial foundation. The company has a reasonable price-to-earnings ratio of 12. This indicates that it's not overvalued, and its recent performance shows resilience despite industry challenges. With $43 billion in revenue and a solid balance sheet, including $999 million in cash, Magna is well-positioned to continue delivering value to its shareholders. So, if you're a beginner investor looking for a reliable stock with both growth potential and income opportunities, Magna might just be the perfect fit.

Hydro One

Finally, Hydro One (TSX:H) is a top choice for beginner investors looking for a reliable and stable stock. As Ontario's largest electricity transmission and distribution provider, Hydro One plays a crucial role in powering millions of homes and businesses. This kind of stability is gold for those new to investing. It means the company is less likely to experience wild price swings. Plus, with a low beta of 0.3, Hydro One's stock tends to be less volatile than the broader market. This makes it a safer bet for those just starting out.

Another great reason to consider Hydro One is its consistent dividend payout. It currently offers a forward annual yield of 2.8%. Given the company's solid financial performance and ongoing investments in infrastructure, it's well-positioned to continue delivering value to shareholders. For beginners, this combination of stability and income makes Hydro One an excellent cornerstone for a long-term investment portfolio.

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