Long-term investors will not invest in unicorn start-ups and other high flyers on the stock market. They will not be ruled by emotions, nor will they be influenced by market frenzy.
Certainly, there are gains to be made from the meteoric rise of the stock prices, but those gains are not sustainable over the long haul.
When it comes to achieving long-term financial goals, the best strategy is to invest in blue chip stocks or the “big guns” of the TSX. The stocks will not dazzle you with high capital gains. However, there is guaranteed consistency in delivering solid gains for the next 10 years or more.
A bank stock for keeps
I don’t need to defend my choice of Toronto Dominion Bank (TSX:TD)(NYSE:TD) as the prime bank stock you can buy and hold for decade; the bank’s market capitalization of $140.44 billion financial institution is compelling enough. TD is venerated not only in Canada, but also in the U.S.
The strong performances of the Personal and Commercial Banking segments are testament to the incredible admiration outside Canada’s borders. TD’s Canadian branches number far fewer than those on the east coast of the U.S.
Net earnings have been impressive over the last four years. In 2018, TD reported $11.2 billion profit, and the bank could potentially end 2019 with 6.0% higher bottom line. Next year’s growth estimate is 7.10%, however.
With a dividend yield of nearly 4.0% that’s sustainable for infinity, the dividend income, including dividend reinvestment, will be very sizeable.
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The real energy deal
I would be crazy not to invest in one of North America’s largest energy transporters if I’m aware that $1.0 million is not enough to live a comfortable retirement lifestyle.
Those who bought the shares two decades ago and are holding on to them until today have experienced 23 consecutive years of dividend income, thereby accelerating cash flows in their pursuit of a hefty retirement fund.
The $94.71 billion oil and gas midstream company has been turning in solid profits every year. Enbridge is not yet done with the ongoing overhaul to would simplify business operations. Hence, there is further room for growth.
Stock for early retirees
Choosing the best stock in the telecom industry that has remained an oligopoly for years is easy for investors planning for early retirement. Actually, it’s a no-contest because BCE Inc. (TSX:BCE)(NYSE:BCE) is the logical choice.
The five-year average dividend yield of the industry leader is 4.83% and the current yield is 5.27%. There’s not much discussion in terms of financial strength, business growth, and dividend track record.
BCE’s annual revenue over the past years has been over $20 billion. The figure is skewing upwards and so will dividend payments.
I will stick my neck out for these industry leaders that have rewarded investors with unfailing dividends plus decent capital gains.
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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of Enbridge. Enbridge is a recommendation of Stock Advisor Canada.