Investors employ all kinds of strategies to enjoy continued success so they can keep on growing their wealth to create substantial investment portfolios.
The most successful investors always rely on healthy long-term plans that see them buy and hold on to stocks built to last for ages. Holding on to just any stock doesn’t cut it. You need reliable stocks that have something to offer.
Canada has one of the world’s most protected telecom sectors. Picking out the stocks of a company operating in Canada’s telecom industry is an ideal to buy and hold strategy.
What better stock could there be to consider than the world-class network that is BCE Inc (TSX:BCE)(NYSE:BCE)? BCE is one of Canada’s major telecom industries, and it has a monopoly with little competition.
Canadians enjoy quality telecom services
It’s no secret that Canadians love companies that offer them excellent telecommunications services.
It has the most efficient and advanced broadband and wireless internet service in the world. BCE’s clients enjoy phenomenal download and internet connection speeds.
At the same time, the broader telecom industry in Canada is faring better than its counterparts in other parts of the world. Whether you look at subscriber number growth, percentage of revenue, or quality of services, Canada’s telecom is leading the charge.
Aligning with the highest industry standards set in Canada, BCE has set up world-class telecommunication services that they can scale to meet increasing demand.
Even in the case of a recession, people will still need to communicate, use the internet, and watch TV, which gives the stock more insulation to hold itself relatively steady during challenging economic times.
Strong company and dividends
BCE has a penchant for getting a leg up compared to its competition. The $58 billion market capitalization company has the kind of money to make acquisitions that further bolster its growth.
The company already has a wide moat, but it continues to improve on its offerings. The AlarmForce acquisition in 2018, for instance, was a significant development to make BCE more attractive.
The acquisition of AlarmForce early last year made it possible for BCE to head into the growing markets for smart homes and home security. The deal allowed BCE to add a host of services and products, which they can present in existing bundles to existing users.
The substantial 5.19% dividend yield comes as a cherry on top for investors. Not only can the potential value of an investor’s portfolio increase with the company’s growth, but the amount can also be bolstered by dividends over the long haul.
BCE is a top-quality company with a long track record of dividend growth, strong performances, and the potential for even more growth moving forward. I believe that it could be a top pick for a stock you can buy and forget.
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 Adam Othman has no position in any of the stocks mentioned.