Not everyone has the time to constantly readjust their portfolio to changing economic conditions, but fortunately there are a few stocks out there that you can buy and forget about, knowing their long-term performance will be strong.
Canadian Natural Resources Limited (TSX: CNQ)(NYSE: CNQ), Metro Inc. (TSX: MRU), and Brookfield Asset Management Inc. (TSX: BAM.A)(NYSE: BAM) are great examples of stocks that are proven performers over the long run, under varying economic conditions.
Canadian Natural Resources Limited
Canadian Natural Resources Limited is one of Canada’s major energy producers. The company is widely recognized as the low cost producer of oil in Canada, a status it has obtained through focusing on long life, low-yield assets. The company can also profit under fairly diverse economic conditions compared to a conventional oil producer thanks to its energy mix, which is a balanced mix of natural gas, light oil, heavy oil, in situ oil sands production, oil sands mining, and upgrading facilities.
Another benefit of owning Canadian Natural Resources is that you will get quarterly income from its $0.22-per-share quarterly dividend, and you can expect this dividend will increase over time. Canadian Natural Resources has increased its dividend every year since its introduction in 2001.
Oil is cyclical and even though low prices are part of this cycle, a low-cost producer with a healthy energy mix like Canadian Natural Resources is a good buy-and-hold stock. Even given the oscillation in oil prices, over the past 10 years, Canadian Natural Resources’ stock has appreciated by 244%.
Metro Inc. is in the grocery business, and the fact that people have to eat is part of the reason the company has been a consistent performer, with the stock appreciating by about 300% over the past 10 years. The fact that food is the company’s main business means that the stock does not experience the degree of volatility that other stocks do, because food demand is somewhat consistent even when the economy is not. Metro Inc. also pays a healthy dividend for its sector; the current annual dividend yield is 1.51%.
Brookfield Asset Management Inc.
Brookfield Asset Management Inc. is truly a powerhouse company when it comes to Canadian asset managers. The company has approximately $200 billion worth of assets under management, which include real estate, renewable energy, infrastructure, and its private equity business. Over the years, Brookfield Asset Management has often surprised with higher-than-forecast revenue and profit reports, and part of the reason that the company is able to do this is because it private equity business.
Through its private equity business it can invest its own money into assets, therefore earning a return on its own cash invested rather than lose money through paying interest to a lender. This compounds the return that Brookfield Asset Management can give to its investors, and this can be seen in the company’s prior 10-year performance, in which the stock has ascended by over 200%.
The company’s diverse line of businesses means that the company can thrive under a variety of economic conditions, making it a true buy-and-hold stock. Another plus is that during tough economic times, its private equity arm can scoop up new assets for a great price, and those assets can turn into long-term money makers for the company, and its investors. Like the other stocks I’ve mentioned, this company pays dividends, and dividend payers have proven time and time again that over the long run they outperform their non-dividend-paying counterparts. Brookfield Asset Management’s annual dividend yield is 1.28%.
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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.
Fool contributor Leia Klingel has no position in any stocks mentioned.