In today’s busy world, we often forget about some of the basic tenets of life and, by extension, investing. Remember that old saying, “Good things come to those who wait”? You might be surprised to hear it, but those words of wisdom also apply to your investment portfolio.
Here are three prime candidates to consider buying and holding for a decade or two.
A diversified energy player with loads of potential
Inter Pipeline (TSX:IPL) is one of those companies that doesn’t attract a lot of attention, yet it holds massive potential. Apart from the monthly dividend payment, which provides an incredible 7.05% yield, Inter Pipeline offers investors a few other compelling points to consider.
First, there’s Inter Pipeline’s enviable pipeline network, which spans over 7,800 kilometres and transports 1.7 million barrels per day. Remember that pipelines charge by volume, not commodity prices, meaning that this aspect of Inter Pipeline’s business operates like a toll road on a major expressway.
Second, let’s talk about results. In the most recent quarter, the company posted earnings of $260 million, which was a massive uptick from the $136 million reported in the same period last year.
Finally, there’s the Heartland Petrochemical Complex, which is a $3.5 billion facility currently being constructed by Inter Pipeline slated to be completed within the next year. Once complete, the facility will convert locally sourced propane into a type of plastic used in a variety of manufacturing processes, which will provide Inter Pipeline with a $400-$500 million boost in EBITDA.
Keep your pantry and portfolio well stocked
Metro (TSX: MRU) is one of the largest grocers in the country and an interesting investment option to consider. As a business, Metro provides us with necessities we need on a weekly basis (food), yet many of us often overlook what that necessity means as an investment.
To put it another way, grocers such as Metro have a sizable defensive moat, which should provide a cushion to defensive investors wary of a volatile market. Adding to that appeal is the fact that Metro has diversified into the growing pharmacy space thanks to the acquisition of the Jean Coutu chain back in 2018.
In terms of results, Metro saw company-wide sales surge 12.8% over the same period last year, while adjusted earnings of $230 million were up a whopping 25% over the prior period.
While not exactly the most impressive yield on the market, Metro’s quarterly dividend does provide a 1.47% yield that adds to the overall appeal of the stock.
This bank will have you seeing green
Toronto-Dominion Bank (TSX: TD)(NYSE: TD) is not only one of the largest banks in Canada but is also one of the largest in the U.S. market. Growth in the U.S. market came as a result of several well-executed acquisitions over the past decade that TD stitched together to form a branch network that now surpasses its Canadian network in size.
That impressive U.S. network, which is being fueled by strong loans and deposits, continues to provide TD with strong results during earnings season, which is set for later this week.
In the most recent quarter available, TD reported record-breaking earnings of $3.2 billion, reflecting solid growth of 9% over the same period last year. The lucrative U.S. segment I mentioned earlier realized a whopping 29% bump in adjusted net income in that period, coming in at $1,263 million.
In addition to strong growth, TD provides investors with a solid quarterly dividend, which currently amounts to a yield of 4.14%.
Final thoughts
While no single stock can propel you to riches overnight, the three stocks mentioned above should help boost your portfolio in a diversified manner to reach new levels over a longer time frame.
