The Motley Fool

3 Top Stocks to Buy and Hold for a Decade

The market slowdown at the end of 2018 caused many investors to re-examine their portfolios and in many ways opt for some more defensive long-term holdings that will not only survive any future slowdowns, but also provide a healthy income for investors going forward.

Here are three unique investments from different areas of the economy that will do exactly that.

Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) is an interesting pick for those investors looking for a growing income as well as the opportunity to invest in renewable energy which continues to gain in importance. Apart from the obvious defensive appeal of investing in a utility, Algonquin’s portfolio of renewable investments places the company at an advantage over many of its more traditional utility peers.

Algonquin is composed of two subsidiaries: Liberty Power, and Liberty Utilities. The power subsidiary generates an electric capacity of 1,050 MW from a growing portfolio of 35 renewable facilities that includes gas, solar, hydro, geothermal and wind elements whereas the utility segment provides gas, electric and water service.

Both segments serve over 750,000 customers in 12 U.S. states. Additionally, Algonquin reached out to the global market last fall through a joint venture to expand its portfolio of renewable energy assets to additional locations around the world.

In terms of a dividend, Algonquin offers a quarterly payout with an appetizing yield of 4.59%.

Another intriguing investment option for defensive-minded investors to consider is one of Canada’s telecoms. Rogers Communications (TSX:RCI.B)(NYSE:RCI) is one of the largest telecoms in the country, and following a multi-year effort by the company to push growth and improve service (and by extension, better retain its existing customers from defecting) posted impressive numbers in the most recent quarter and rewarded investors with its first dividend hike in years.

Specifically, Rogers’ wireless segment realized 8% gains in revenue and welcomed 112,000 net new additional subscribers in the quarter – some of the best growth numbers the company has posted in nearly a decade. As for that dividend hike, while the current quarterly 2.8% yield may sound lower than its telecom peers, Rogers’ continued emphasis on growth will no doubt result in further increases as both subscriber and revenue numbers continue to grow.

Speaking of growth, not only are those investments paying off, but Rogers continues to push further updates to its already enviable wireless network. Just this week the company announced a series of enhancements to its wireless network across several provinces.

Rogers currently trades at just over $71 with a P/E of 17.89 at writing.

It would be difficult to provide a list of long-term defensive investment options without mentioning Suncor Energy (TSX:SU)(NYSE:SU). As the largest integrated energy company in the country, Suncor has massive and diverse holdings that have allowed the company to not only expand to markets outside of Canada, but also become one of, if not the most efficient operator in the oil sands.

That efficiency is a key point that prospective investors should take into consideration, as it has allowed Suncor to continue posting gains even when oil presses were down significantly. Suncor’s massive size is another factor worthy of mention. Specifically, Suncor continues to expand its operations rather than rest on its laurels, which should appeal to growth-minded investors. Both the Fort Hills and Hebron projects are prime examples of this, as both recently completed projects represent strategic long-term options that are key for Suncor’s growth.

As a dividend investment, Suncor offers an appetizing quarterly yield of 3.84%, which has been raised on an annual basis for 17 consecutive years, and that trend is unlikely to end anytime soon.

Suncor currently trades at under $43 with a P/E of 14.08.

Motley Fool Canada Announces a FREE Gift for Investors

The financial world is buzzing as Iain Butler and his team of market-beating analysts in Stock Advisor Canada pick their favorite stocks for 2019 and beyond.

As a special gift for investors, they’ve decided to give away one of their top TSX stock picks of 2019 for FREE.

Click here to claim your free TSX stock pick for 2019

Fool contributor Demetris Afxentiou owns shares of Algonquin Power & Utilities. Rogers is a recommendation of Stock Advisor Canada.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.