Choosing which stocks to invest in for the long haul can be difficult, especially when you’re saving for your retirement. Ideally, you’ll want some mix of dividends, growth, and stability, which is something all three of the stocks below offer. These are some of the best long-term investments you can buy and forget about in your portfolio.
Waste Connections (TSX:WCN)(NYSE:WCN) is a great recession-proof stock that’s always going to have demand for its services. Waste management is a good area for investors to hold stocks, as it’s not dependent on a commodity, nor will there be a significant, adverse effect on it if the economy is not doing terribly well. There’s no seasonality, and it’s a great example of a business that should provide investors with consistency.
The company has given investors no concern over the years, with profits of more than US$500 million in 2018 and 2017. Sales have been rising progressively, up from US$4.6 billion in 2017 to US$4.9 billion in 2018. Waste Connections has been growing via mergers and acquisitions, the most notable being its US$2.67 billion purchase of Progressive Waste a few years ago. And there are still many more opportunities to grow in an industry that has a lot of fragmentation.
Waste Connections also pays a modest dividend yield of 0.8% per year.
BCE (TSX:BCE)(NYSE:BCE) isn’t a stock I’d suggest to anyone unless they’re long-term investors. BCE isn’t a growth machine, but with strong profits and free cash flow of more than $3 billion for two straight years, it’s in good shape to be able to acquire companies and grow steadily over the long term.
Whether consumers continue to use cable, or whether they cut the cord and use the company’s Crave TV service, it’s likely to continue dominating the space. It’s a household name and an industry leader, making it a safe investment to hold for many years.
What may be most attractive about the stock today is its dividend yield, which, at around 5%, is a top payout given the little risk that you’ll be taking on to hold shares of the company. It’s a stock that doesn’t have a lot of volatility, ensuring that your investment doesn’t go on a wild swing just because the market has been erratic.
Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is another TSX giant that investors can’t go wrong with. This is another long-term hold that should continue to grow over the years simply as a result of growing populations in both the U.S. and Canada, which will bring in more consumers and businesses using the bank’s services.
The bank stock is a good way to invest in the economy, as strong, booming performances in Canada and the U.S. are sure to translate into more loans being taken out and more banking activity at TD’s branches. Although its dividend yield of 4% is less than what BCE offers, it’s still a solid payout for one of the top bank stocks on the TSX.
TD is an easy stock to suggest anyone put in their portfolio, because there is little doubt that it will go anywhere but up over the long term. And with a great dividend to add on top of that, it’s a surefire way to ensure your portfolio will continue to grow.
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.