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What does a stock add to your portfolio other than the potential for returns? This is an important question to ask if you want to have a global vision of your investments and go beyond the financial aspect. These can be conservative and easy to understand factors like stability and consistency, as well as responsible investing considerations like the ESG value of your portfolio.
A 5G leader
Telus (TSX: T) (NYSE: TU) is an impressive growth and dividend sharesat least from the perspective of the Canadian telecommunications industry. It offers a slightly different combination of potential for capital appreciation compared to AEC. It has more growth (10 year CAGR of 12.1%) and a relatively smaller return (4.4%). It offers more than that decent combination of return potential; it also offers a chance to invest in Canada’s 5G potential.
Domestic 5G penetration is still a long way off, but with the right approach, Telus’ return potential could become much more powerful than it is today. This 5G actions also offers stability as one of the few industry leaders and a telecommunications company with a healthy consumer base. As a dividend aristocrat, the chances of your dividend based payments / income from this company keeping pace with inflation are pretty high.
A waste management company
Although not exactly green action, Waste connection (TSX: WCN) (NYSE: WCN) is a solid waste management company that offers the added value of strengthening the ESG profile of your portfolio. It has a strong presence in the United States and Canada, and many of the company’s departments overlap with the sustainability goals of the companies they serve.
This includes sustainable waste management practices associated with commercial activities (including food waste). The company is meeting its own ESG goals at a decent pace. The stock frequently outperforms the market and is one of the most consistent growth stocks currently traded on the TSX, making this overvalued company a smart buy.
A health-focused REIT
If you want to add value to your portfolio by investing in a specific real estate asset class that might have different demand patterns compared to traditional real estate market segments, NorthWest Health Properties REIT (TSX: NWH.UN) is a stock you should consider. The REIT is slow and steady growth with a five-year CAGR of 13.4%.
A more compelling reason to buy this REIT would be the most common reason to buy a REIT – its dividends. It offers a juicy yield of 5.8% and is currently available at a reduced valuation. The REIT is a solid buy thanks to the diversification of its portfolio and since it owns healthcare properties in several countries spread over three continents.
Take away food
A good stock is more than the sum of a few compelling “metrics” or impressive historical performance. It’s a good deal with a stable operating model and promising prospects. Having a relatively comprehensive view of your investments and looking at the value-added factors / elements of your investments can help you build a strong and stable investment portfolio capable of lasting decades with minimal continuous adjustments.