The Motley Fool

3 Stocks to Buy and Hold for the Long Term

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The volatility in the markets over the past few years isn’t something that many investors are keen to witness. It can be unnerving to see investments fall into the red, even if they ultimately recover.

That’s where investing for the long term can be a less stressful strategy, as investors won’t have to concern themselves with how a stock does in the short term. Below are three stocks that could be great for that type of strategy:

TC Energy Inc (TSX:TRP)(NYSE:TRP) has been a staple on the TSX, with a market cap of more than $60 billion. While its name has changed from TransCanada, it’s still the same recognizable company that investors have been familiar with for years.

The stock has been a very good long-term buy, generating returns of around 40% since 2014, when the downturn in the oil and gas industry first began. TC Energy has remained resilient over the years, however.

Low oil prices, a struggling industry and failure to see any momentum on Keystone XL for several years are just some of the issues that the company has faced, and yet it’s been able to preserve and it has been able to post strong results.

And with a dividend yielding 4.4%, the stock can also provide your portfolio with a good source of cash flow as well.

Rogers Communications Inc (TSX:RCI.B)(NYSE:RCI) is another blue-chip stock that you can stash in your portfolio for years and not worry about. At about half the size of TC Energy, Rogers may be a smaller value, but it too is a household name. From telecom to sports, the company has made a name for itself on a number of different fronts.

Rogers has found ways to continue to grow even as competition has been on the rise. Averaging a profit margin of 14% over the past four quarters, the company has been doing a great job of getting a good chunk of its revenues to trickle through to its bottom line.

Rogers has also accumulated $1.5 billion in free cash flow over the past year, and being able to consistently will be crucial for the company’s long-term growth and its ability to potentially acquire companies and take on new growth initiatives.

Sienna Senior Living Inc (TSX:SIA) is not nearly as recognizable as the other two stocks on this list, but that’s precisely why it’s on the list. With a market cap of around just $1.3 billion, Sienna could be an intriguing play from a couple of different angles.

The first is the sheer potential of the company to continue growing its sales as demand for senior housing increases with more retired Canadians looking for places to live. The other reason is that it could be an attractive acquisition for a bigger player in the industry.

With a portfolio that includes 70 residences as of the end of last year, Sienna could help a company increase its presence in both Ontario and British Columbia.

Either way, Sienna could be a lot more valuable in a few years’ time as it continues to grow. Over the past five years, its share price has risen by more than 40%, and there could be even stronger returns in the near future.

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 David Jagielski has no position in any of the stocks mentioned. Rogers Communications is a recommendation of Stock Advisor Canada.

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