investing

Good stocks to buy typically have a history of dividend payments, but they are not in the media limelight

Use these stock tips for long-term investment success and you will be on the path to higher portfolio returns with less risk

How do you invest your money for the best returns? Here’s a successful strategy that takes a conservative approach to long-term investment decisions.

To identify the best blue chip stocks for beginners, start with our three-part Successful Investor approach

One of the key tenets of our Successful Investor philosophy is to diversify by spreading your money out across most if not all of the five main economic sectors: Manufacturing & Industry, Resources & Commodities, Consumer, Finance, and Utilities.


And as part of your holdings, we continue to recommend that most Canadian investors hold at least two or three of Canada’s Big Five banks (TD Bank, Bank of Nova Scotia, CIBC, Bank of Montreal and Royal Bank)....

Canadian investors, not unlike investors from most other countries, often have a bias for investing in their home markets. Familiarity with the domestic environment and companies—and a lack of familiarity with foreign markets—are big reasons.


And we agree with that bias—we still recommend that most Canadians hold the bulk of their portfolios in Canadian stocks, or ETFs that hold those stocks.


One good reason for that is Canadian taxpayers who hold Canadian dividend stocks get a special bonus....

We generally advise against selling your best picks too soon. The same advice applies not only to your individual stock or ETF holdings, but also to your ETF portfolio, in general.


By holding on to your best ETFs or stock picks, you improve your chances of latching on to a market superstar—a stock or ETF that will wind up producing two or five or 10 times more profit than average....

We still feel that virtually all Canadians should have, say, 20% to 30% of their portfolio in U.S. stocks, or in ETFs holding those stocks. In fact, for some investors, that’s all the foreign exposure their portfolios really need. Still, international markets can add further diversification and provide exposure to some top global leaders.


Here we highlight two ETFs that hold high-quality international stocks—but without U.S....

CN’s shares have shot up nearly 50% from their March 2020 low of $92. Investors should expect the company to continue benefiting as the economy recovers from the COVID-19 pandemic. The recent cancellation of the Keystone XL oil pipeline by new U.S. president Joe Biden should also push more crude oil onto its rail networks.


Meantime, the company continues to improve the efficiency of its rail networks....

The best long-term growth stocks offer plenty of reasons to make you believe they are worth adding to your portfolio. However, it’s important to also recognize the potential for costly mistakes.