When I first figured out how to buy stocks, my focus was squarely on companies I could invest in forever. These long-term growth stars had the ability to turn a small upfront investment into a sizable mini fortune. All I had to do was be patient.
Now, some stocks in my portfolio have been around for seven or eight years. They’ve delivered such stunning returns that I never wish to let them go. I also wish I had invested just a little bit more in them all those years back.
Nevertheless, I’m always on the hunt for my next buy-and-hold-forever stock. Here are two stocks you should consider if you have $2,000 and want to learn how to buy stocks.
NorthWest Health Properties (TSX:NWH.UN) is a little-known Canadian stock that I’ve had my eye on for months. To be honest, this ongoing pandemic has made it clear to me that no other industry is as essential as healthcare. So, it makes sense that a company that owns and manages healthcare-related real estate would have great prospects.
Northwest serves clinics, hospitals, and pathology labs across the country. These tenants have great cash flows and robust demand, which means they can sign long-term leases for their properties. Northwest’s average lease lifespan is 14.5 years, according to its reports.
Other statistics are just as impressive. Total occupancy for the NorthWest portfolio is 97.5%. Of its tenants, 80% are directly funded by the government, which means there’s little to no risk of default. And 75% of leases are linked to inflation, which means the rents just keep growing over time.
The best part: NorthWest Property promises a 7% dividend yield at its current market price. Altogether, this is an ideal pick if you’re just learning how to buy stocks with low risk and robust rewards.
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Society and the economy has been reshaped by this crisis. Investors have very little certainty about diminishingly few things. However, one thing is for certain: the demand for wireless data.
Telecommunications firms like BCE (TSX:BCE)(NYSE:BCE) have been swimming in cash ever since the world became obsessed with the internet. Demand for broadband and wireless internet has shot through the roof since the early 2000s. Now, demand is focused on faster internet speeds and better coverage.
BCE seems to have made the right investments to stay ahead of the game for years. Its coverage in rural parts of Canada is unparalleled, and it’s one of the few telecoms to offer 5G internet speeds in major cities.
With reasonable debt levels, $1.61 billion in quarterly cash flow, and $5.4 billion in cash, the company’s financials are also in great shape. If you’re wondering how to buy a stock that will grow for decades, BCE is a great place to start.
How to buy stocks forever
Stocks you can buy-and-hold forever are rare. However, some companies in specific industries have the right combination of financial strength and market dominance to stick around for decades. Stocks such as BCE and NorthWest Health properties should certainly be on your radar.
Looking for more quality stocks? Here's a list.
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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 Vishesh Raisinghani has no position in any of the stocks mentioned. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.