For some companies, the writing’s on the wall because of failure to change with the times. For others, it’s the exact opposite. Commitment to core traditional services and/or products, plus the foresight to keep customers engaged with new offerings, provide growth. The following five stocks can be a long-term part of your portfolio, providing returns for the rest of your life.
Amazon.com (NASDAQ: AMZN) offers most everything delivered fast to your front door. Online shopping continues to grow unabated and Amazon continues to fulfill consumers’ wishes for expedited delivery of a broad assortment of goods in countless categories at competitive prices.
In April, Amazon reported that net sales increased 23% to $19.74 billion. This is in comparison to $16.07 billion in Q1 2013. Now Amazon is getting into fresh grocery delivery. It tested the service for five years in Seattle, and has expanded Amazon Fresh to Los Angeles and San Francisco. The company’s Prime Fresh members receive same-day and early morning delivery on fresh groceries and more than 500,000 other items.
BCE (TSX: BCE)(NYSE: BCE) is Canada’s largest communications enterprise. The company provides a collection of broadband communications services under the Bell and Bell Aliant brands. In 2013, BCE’s wireless, internet, media, and TV services accounted for 82% of revenue. For Q1 2014, BCE’s net earnings attributable to common shareholders increased 8.7% to $615 million. In Q1, the total number of TV subscribers was up 8.1% to 2,529,471. This included 723,891 Internet Protocol television (IPTV) customers.
Earlier this year, BCE announced a 6.0% increase in its common share dividend, from $2.33 to $2.47. This represents the tenth BCE common share dividend increase since Q4 2008 and 69% total growth in its dividend.
Enbridge (TSX: ENB)(NYSE: ENB) has energy delivery networks throughout North America. The company is expanding and extending its energy infrastructure network. It operates the world’s longest and most complex crude oil pipeline system, and delivers over 2.2 million barrels daily, on average, to Canada and the United States.
As Byron Neiles, Senior Vice President of major projects, stated, Enbridge is “currently working on $36 billion in commercially secured growth projects, and every single one of our businesses is growing — from liquids and gas pipelines to renewable power generation to gas distribution.” The expectation is that the enterprise-wide commercially secured projects will come into service between now and 2017.
FedEx (NYSE: FDX) is yet another company with lifelong potential. Its operations include FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. It handles approximately 10 million packages each day. Growth for FedEx will come from online shopping. It introduced its FedEx SmartPost program in 2004, which has helped online retailers reduce costs for lightweight shipments and promote free shipping as a marketing tool.
Last week, FedEx announced that its FedEx TechConnect subsidiary opened a new package laboratory. The facility has over 30,000 square feet; it will serve small and large FedEx Express, FedEx Ground, and FedEx Freight customers, providing them with free package testing and design services.
5. High Liner Foods
High Liner Foods (TSX: HLF) is North America’s leading processor and marketer of value-added frozen seafood. Its well-known, trusted brands include High Liner, Fisher Boy, Mirabel, and Sea Cuisine. The OECD Agricultural Outlook said that “world fisheries and aquaculture production is expected to reach about 181 Mt by 2022, a[n] 18% growth compared to the 2010-12 base period.” The report also stated that additional “fish consumption” expansion will largely originate from developing countries.
Worldwide consumer demand for seafood is growing because of both the known health benefits of seafood and increased demand from developing economies. High Liner acquired American Pride Seafoods in October 2013. This acquisition complements the company’s portfolio of products, and adds a substantial U.S.-based scallop business to its line-up.
Consider the above five stocks as you build your portfolio for retirement, whenever that may be. These stocks offer diversification and the potential for more growth.