Top TSX Stocks of the 21st Century

In no particular order, my picks as the best TSX stocks of the 21st century are BCE Inc. (TSX:BCE)(NYSE:BCE) Enbridge Inc. (TSX:ENB)(NYSE:ENB), and Royal Bank of Canada (TSX:RY)(NYSE:RY). You can the stocks for centuries, if not for eternity.

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If I were to name the best TSX stocks of the 21st century, I would have to pick BCE (TSX:BCE)(NYSE:BCE), Enbridge (TSX:ENB)(NYSE:ENB), and Royal Bank of Canada (TSX:RY)(NYSE:RY) or RBC. My choices have three things in common.

All of the companies are blue chip stocks, dividend aristocrats, and leaders in their respective industries. If you have all three stocks in your portfolio, you have a collection of reliable dividend payers and a non-quantifiable peace of mind.

Let’s look at the stock performances from 2000. Since I will be using the closing prices of September 6, 2019, my reckoning dates for the 10- and 20-year periods would also be September 6.

Telecom leader

BCE is Canada’s largest telecom operator and the undisputed industry leader. The company has spent billions to achieve the leadership position. Today, BCE provides advanced broadband communications networks and services to customers in Canada.

BCE’s Bell brand is a respected name in residential communications and small business services. Bell LTE Advanced is Canada’s Best National Mobile Network and operates the largest network of data hosting and cloud centers. BCE also operates the most extensive network of communications retail outlets in the country.

In 2000, BCE was trading at $32.00, but after 10 years, the price was lower by nearly 15%, or $27.22. The company was developing its business, so BCE was probably going through a rough patch. Fast forward to the present, and the price is $63.54 or a jump of 133.43% in a decade.

Largest bank

RBC is the largest Canadian bank and the largest company of the TSX Index by market capitalization. Banking operations began in 1864 until it became a diversified financial service company today.

Had I invested $10,000 in RBC 20 years ago, my money would be worth $92.408.43. My total return for the period would be 823.5%, or an average annual total return of 12.41%. That’s mighty impressive.

For the stock price, RY was trading at $11.00 back in 2000. In 10 years, the price rose by 416.63% to $56.83. In 2019, the bank stock is doing $100.94, which represents a 77.62% increase. Take note that in 2009 there was a recession.

Superior energy

Enbridge reigns supreme across North America. The company moves two-thirds of Canada’s crude oil exports to the U.S., transports 20% of the natural gas consumed in America, and operates North America’s third-largest natural gas utility by consumer count. Enbridge is also the earliest proponent of renewable energy.

As to the performance, ENB was trading at $8.25 in 2000 before climbing by 146.78% to $20.36 in 2009. At present, ENB is now at $45.25 or a 122.24% improvement a decade ago.

Dividend-wise, ENB pays the highest dividend. The energy stock yields 6.55% while the telecom leader and largest bank yields 5.0% and 4.17%, respectively.

Blue chip to the core

I don’t need to defend my choices of the best TSX stocks of the 21st century with financial data. BCE, RBC, and Enbridge are formidable institutions that would be around in the next century.

The companies are genuinely blue chip. I’m sure that long-term investors would have at least one of the three in their stock portfolios.

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.

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