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3 Core Stocks to Own for Decades

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The market crash earlier this year was another reminder of how the stock market can lose more than 25% of its value in less than a month with almost no notice. It also reminded us that those investors with the highest quality TSX stocks at the core of their portfolio likely withstood the crash far better than those with high-risk stocks.

Every portfolio should have core stocks. They are paramount for a long-term investment strategy to act as the pillars of the portfolio. This helps give the portfolio consistent long-term growth while keeping it robust.

This is why selecting top TSX stocks is crucial. There are a select few TSX stocks that will qualify as top core holdings.

So when they go on sale, it’s worth increasing your exposure. Especially when you consider most of the time, these stocks trade with premium valuations.

Here are three of the top core stocks to buy today.

TSX restaurant stock

The first stock to consider adding to the core of your portfolio is Restaurant Brands International Inc (TSX:QSR)(NYSE:QSR).

Restaurant Brands is the parent company of popular quick-service restaurant chains like Tim Hortons, Burger King, and Popeyes Louisiana Chicken.

Large restaurants are being significantly impacted by the pandemic. However, due to their business model, quick-service restaurants have been considerably less affected.

The company has made significant cost improvements over the last few years, which has only added to its exceptional growth. Yet the stock is still down roughly 30% from its 52-week high.

And with its dividend yielding roughly 3.8%, it’s one of the top large-cap TSX stocks worth buying today as a core stock.

Telecoms are top core stocks

Another great stock to consider is Shaw Communications Inc (TSX:SJR.B)(NYSE:SJR).

Shaw’s a top consideration for a core stock for several reasons. First, the entire Canadian telecom industry has a long runway of growth ahead of it. But of all the major Canadian telecoms, Shaw’s growth runway is the longest.

Shaw has long had a solid footing in the wireline market. However, with its new desire to grow its mobile segment, there is considerable long-term growth potential.

As well as offering high-quality, and defensive operations that you’d expect from a telecom, it also offers enormous long-term growth potential.

Plus, it also pays a dividend, giving investors the best of both worlds. The stock currently yields roughly 4.7%, a significant yield for a company of Shaw’s quality.

Railroads make great core stocks

The last core stock to consider is one of the oldest and largest businesses on the TSX, Canadian National Railway (TSX:CNR)(NYSE:CNI).

Railways have always been an excellent investment. It’s one of the cheapest and most efficient ways of transporting freight. This means practically the entire country relies on the rail transportation industry in one form or another.

Canadian National is a historic stock known for having vital and valuable rail lines and destinations. The company is key to the economy, and a strong economy is key to CNR’s growth.

This means it will be impacted by a recession, but sales will ultimately stay highly resilient. That’s the main reason why CNR is a top stock for the core of your portfolio. The business operations are robust, and financially it’s a low volatility stock.

Plus, as the economy grows long term, you can expect that to boost the TSX stock’s sales, making it an outstanding stock to own long-term.

Over the last decade, the stock is up 333%. That’s incredible for any stock, let alone a company that’s been around for over 100 years. Even in the last 12 months, it’s up more than 15%, despite being in a global pandemic for the previous six months.

Bottom line

Finding high-quality stocks to form the core of your portfolio is key. Finding stocks you can buy and forget is even more critical.

This way, you set yourself up for stable long-term growth. Plus, you can focus on finding high potential growth stocks to complement your core.

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Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. David Gardner owns shares of Canadian National Railway. The Motley Fool owns shares of and recommends Canadian National Railway. The Motley Fool recommends Canadian National Railway and RESTAURANT BRANDS INTERNATIONAL INC.

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