3 Stocks Young People Can Hold Until Retirement

You can count on these names not only for years, but for decades.

| More on:
The Motley Fool

If you’re under the age of 35, retirement (unless you’re really lucky) is still a long way away. But that doesn’t mean it’s too early to start saving. So what kind of stocks should you hold?

Well, the best approach is to find names that you won’t need to sell until you reach retirement. That way, you don’t have to constantly monitor your portfolio, and you can resist the urge to trade too often. Unfortunately, Canada does not have many names that fit this criterion. But there are a few, and below we look at three of them.

1. Canadian Natural Resources

Normally, investing in energy producers is a dangerous game. After all, no one can predict with certainty where energy prices are going, and if they do fall, some producers could be crippled. But one company that would be fine is Canadian Natural Resources (TSX: CNQ)(NYSE: CNQ).

CNRL has a reputation for investing against the cycle and ferocious cost control. It’s how the company seemingly came out of nowhere to have more gross reserves than any other Canadian energy company. To put it in plain English, when the oil price is down, and the market is depressed, that’s when CNRL buys assets and develops them – because that’s when it’s cheapest to do so. The past couple of years have been a perfect example.

So over the long term, the oil market will have its fair share of down cycles, but CNRL will eventually come out ahead. And its most patient shareholders will be richly rewarded.

2. Tim Hortons

There is no company more synonymous with Canada than Tim Hortons (TSX: THI)(NYSE: THI); a fact confirmed when Canadian Business named it the country’s number one brand for the second year in a row. As a result, Tim Hortons enjoys a dominant share of Canada’s quick-service restaurant industry, and even though competition is intensifying, there are plenty of customers that will simply never switch away.

The company is also trying to gain a bigger foothold in the United States, but is by no means getting carried away with these efforts. So young investors should be able to count on Tim Hortons not only for years, but for decades.

3. Fortis

If you’re looking for stability, look no further than Canada’s largest investor-owned distribution utility, Fortis (TSX: FTS). Put simply, there will always be enough demand for the company’s electricity, as long as we need to keep the lights on.

As a result, Fortis has raised its dividend every year for over four decades. So even when the economy has been struggling, Fortis has been able to sail right through. And if you’re investing for another four decades, that kind of track record should be very appealing.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

More on Stocks for Beginners

healthcare pharma
Tech Stocks

What’s Going on With WELL Health Stock?

WELL stock (TSX:WELL) made strong moves once again, with record earnings and even higher guidance for 2024.

Read more »

money cash dividends
Stocks for Beginners

Is TD Stock the Best Dividend Stock for You?

Shares of TD stock (TSX:TD) plunged on the news of a money laundering probe. But could this mean it's a…

Read more »

Growth from coins
Stocks for Beginners

Prediction: These Could Be the Best-Performing Value Stocks Through 2030

These stocks should absolutely surge through 2030 and beyond, with demand rising and supply only decreasing.

Read more »

You Should Know This
Stocks for Beginners

Thomson Reuters Is up 15% After Earnings: What Investors Need to Know

TRI (TSX:TRI) stock saw shares surge after earnings that not only demonstrated strong results for the quarter but offer the…

Read more »

Dice engraved with the words buy and sell
Stocks for Beginners

TD Stock: Buy, Sell, or Hold?

TD stock (TSX:TD) is under immense scrutiny during its money laundering probe, but this could also mean it is a…

Read more »

Different industries to invest in
Tech Stocks

Why This AI Stock Surged 363% in Just 1 Year

This AI stock has surged this year by almost 400%! And yet this could only be the beginning for this…

Read more »

Various Canadian dollars in gray pants pocket
Tech Stocks

3 No-Brainer Stocks to Buy With $50 Right Now

Looking for high growth? Dividends? How about just a huge portfolio? We've got it all with these three top stocks…

Read more »

woman analyze data
Stocks for Beginners

Best Stocks to Buy in May 2024: TSX Consumer Discretionary Sector

Here are two of the best TSX stocks from the consumer discretionary sector you can buy today and hold for…

Read more »