If you pay even the slightest bit of attention to the financial press, you know that both the Dow Jones Industrial Index and the S&P 500 have recently eclipsed their all-time high water marks. Thanks in large part to resource (energy/materials) stocks, the Canadian market has been left in the dust kicked up by its partying U.S. peers. The S&P/TSX needs to appreciate by about 19% to join in on the fun.
Just because the overall Canadian market has languished doesn’t mean there aren’t stocks that have recently achieved lifetime highs. The three big caps that currently sit within spitting distance of this headline friendly level are Enbridge (TSX:ENB,NYSE:ENB), TransCanada Corp. (TSX:TRP,NYSE:TRP), and Rogers Communications (TSX:RCI.B,NYSE:RCI).
No flash in the pan
Long-term investors in all three names are very likely a happy, and wealthy lot. The results tabled below speak volumes for the merits of buy and hold, dividend focused investing.
| Company Name |
IPO-Present |
Price Return |
Dividend Adj. Return |
| Enbridge |
1/2/1976–4/1/2013 |
+3,107.4% |
+32,134.9% |
| Rogers |
11/30/1979–4/1/2013 |
+10,923.4% |
+14,671.3% |
| TransCanada |
6/3/1985–4/1/2013 |
+71.4% |
+518.8% |
Source: Capital IQ
If one had the foresight to invest $100 in each of these IPOs and simply held on, collecting dividends along the way, they would currently be sitting on a $47,000 stash. Not too shabby for three boring, old economy stocks!
Foolish Takeaway
Not only do the returns achieved by these three Canadian stalwarts help reinforce the power of long-term investing, they also demonstrate how profitable a competitive advantage can be for investors. All three are owners of assets that essentially will not be replicated. Rogers with its cable, and to a lesser extent wireless networks, and Enbridge and TRP with their pipeline assets. Companies that own irreplaceable assets are rare. When you find one, buy and hold on for the long ride to riches they can provide.
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Fool contributor Iain Butler does not own shares in any of the company’s mentioned. The Motley Fool has no positions in the stocks mentioned above.
