3 Stocks to Own for 30 Years

Here’s why Canadian National Railway Company (TSX:CNR)(NYSE:CNI) and two stocks with international assets deserve to be on your radar.

| More on:
Growth from coins

Image source: Getty Images

The current volatility in the global financial markets has investors searching for reliable stocks that should be solid long-term performers.

Let’s take a look at three top stocks that deserve to be on your radar today.

Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is Canada’s third-largest bank.

Investors often skip the stock in favour of the two larger Canadian peers, but the long-term prospects might warrant a change of view.

Bank of Nova Scotia is making a big bet on growth in emerging markets, with a particular focus on Mexico, Peru, Colombia, and Chile. The four countries are home to more than 230 million people and are all members of the Pacific Alliance trade bloc. Capital, goods, and labour move freely among the markets, and Bank of Nova Scotia’s presence in the countries positions it well to benefit from economic growth.

The international division already accounts for nearly a third of total profits, and that should expand in the coming decades.

Bank of Nova Scotia trades at less than 10 times earnings compared to the 12 times earnings investors pay for the other members of Canada’s top three banks. A modest discount is expected due to the added risk that comes with the Latin American division, but the gap might be overdone right now.

The dividend is secure and provides a 5% yield.


Canadian National Railway (TSX:CNR) (NYSE:CNI) is a leader in the North American rail industry, transporting more than $250 billion worth of goods every year. The company plays an essential role in the operations of the Canadian and U.S. economies, and that is expected to continue for decades.

CN reported record results for Q2 2019 and says it is on track to deliver diluted earnings-per-share gains of at least 10% compared to 2018.

The company is investing nearly $4 billion this year on capital projects, including new locomotives, rail cars, infrastructure upgrades, and technology initiatives. CN is also using its cash flow to buy back shares and pay investors a dividend.

CN is one of the top dividend-growth stocks in the TSX Index with a compound annual dividend-growth rate of better than 16% over the past 20 years.

The stock isn’t as cheap as it was late last year, but it has pulled back from the 2019 highs. Any dip in CN has historically proven to be a solid opportunity for buy-and-hold investors.

Brookfield Asset Management

Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) actually trades near its all-time high right now, but the stock deserves to be on your radar in the current environment.

Brookfield is an alternative asset management company. It invests in real estate, infrastructure, and renewable energy opportunities around the world, providing shareholders with a vehicle to get global exposure that would otherwise be impossible.

The global trend of negative bond yields and falling interest rates bodes well for this business in the coming years.

In addition, Brookfield does a good job of taking advantage of moments when it can unload an asset for a good profit and deploy the proceeds in new opportunities that should deliver better returns.

The bottom line

Bank of Nova Scotia, CN, and Brookfield Asset Management should be solid picks for a buy-and-hold portfolio. An equal investment in the three stocks would give investors good diversification across sectors as well as exposure to long-term international opportunities.

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.

David Gardner owns shares of Canadian National Railway. The Motley Fool owns shares of Brookfield Asset Management, BROOKFIELD ASSET MANAGEMENT INC. CL.A LV, and Canadian National Railway. Fool contributor Andrew Walker has no position in any stock mentioned. Bank of Nova Scotia and Canadian National Railway are recommendations of Stock Advisor Canada.

More on Stocks for Beginners

retirees and finances
Dividend Stocks

How to Create a Million-Dollar TFSA in Two Decades

Your TFSA could create riches you didn't know were possible, but only if you commit again and again to your…

Read more »

Coworkers standing near a wall
Stocks for Beginners

2 Unassailable Earnings Growth Stocks for a Wobbly Economy

Aritzia and another top growth stock that could be hot performers through 2023 and beyond.

Read more »

Chalk outline of two arrows pointing in opposite directions
Stocks for Beginners

2023 Is a Terrible Time to Be a Saver: Here’s What to Do With Your Money Instead

You can hold short-term GICs for your liquidity needs but also consider investing your money in quality businesses for the…

Read more »

edit Sale sign, value, discount
Stocks for Beginners

3 Cheap Stocks I’d Buy in Bulk When a Recession Hits

Not only would I grab these cheap stocks during a recession, I would then hold them for the next decade…

Read more »

Female hand holding piggy bank. Save money and financial investment
Stocks for Beginners

Millennials: How to Take Full Advantage of That “RRSP” Thing

I get it; it's hard to invest for the future when the present is stressful, but there are present benefits…

Read more »

Man with no money. Businessman holding empty wallet
Stocks for Beginners

Canadians Investors: How to Know When We’ve Hit a Recession

A recession is coming in 2023, but what does that even mean? And how can investors protect themselves before it…

Read more »

man slides
Dividend Stocks

TFSA Investors: Where to Put That New $6,500 Contribution Room

These stocks may be trading high, but they still offer value for TFSA investors seeking out the best stocks to…

Read more »

A bull and bear face off.
Stocks for Beginners

3 Cheap Stocks I’d Buy Before the 2023 Bull Market Arrives

Investors seeking out value should consider these cheap stocks, which could be some of the best stocks to buy before…

Read more »