To decide on the stocks to buy and hold for the next 30 years, I took a top-down approach.
Green power is the trend of the next century. So, as one of the globe’s biggest renewable power platforms, Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) is an excellent name to buy and hold.
In fact, it has become even more popular after it performed a unit split that spun off corporation shares that can be purchased using the ticker BEPC on the TSX and NYSE.
The stock also pays a growing dividend. After the stock rally, BEP only yields 3.8%, which is lackluster for a new position.
It has had a super run by appreciating 65% in the last 12 months. It had be a better buy on a meaningful dip of more than 20% that could arise from a market selloff.
Brookfield Renewable has a diversified asset base across different technologies, including hydro, wind, solar, and pumped storage and battery assets. It would be an excellent long-term holding when bought at the right price.
Up next let’s discuss Brookfield Renewable’s sister company, Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP).
A 4%-yield utility
Brookfield Infrastructure is more reasonably priced than BEP. As a result, it offers a better yield of nearly 4.1%. As the name implies, BIP owns a global base of infrastructure assets.
Similar to BEP, it also performed a unit split that spun off corporation shares that can be held in a taxable account for favourably-taxed dividends. Consequently, the BIPC shares have been more popular than the BIP shares. Since the spinoff, BIPC has been bid up by 29% versus BIP’s appreciation of 11%.
BIP will also be a long-term winner as it invests in critical infrastructure assets that provide essential services to the economy. Its portfolio consists of utility, transport, energy, and data infrastructure assets in North and South America, Asia Pacific, and Europe.
Its infrastructure assets for the transportation of data, energy, freight, bulk commodities, and passengers are a critical part of the economic backbone for as far as we can see into the future.
The stock has materially outperformed — returning 24% per year in the past 10 years compared to the S&P/TSX Capped Utilities Index’s 10%. The gains had largely to do with its high-quality, diversified asset base and a proven management team. A stronger U.S. dollar against the loonie over that period also helped as it reports its results in that currency.
Interested investors can consider buying a starter position today and buy more on a pullback of more than 10%.
Motley Fool was an early investor of and recommended Shopify (TSX:SHOP)(NYSE:SHOP) stock early on. It predicted Shopify to be the next Amazon. The e-commerce stock appears to be on that track. If it continues heading un this direction, it’d be a nearly 13-bagger before it catches up to Amazon’s market cap.
The pandemic has especially accelerated businesses’ shift to selling online as a key part of their strategies, which has translated to greater revenues for Shopify.
Shopify continues to be the king of stocks. The stock has climbed 238% in the last 12 months! Its second quarter saw revenue growth of 97% year over year in a world where most countries are experiencing a GDP decline.
In fact, of the key geographies in the world, including the United States, the Euro Zone, Japan, Germany, the U.K., France, and India, only China posted a GDP growth of 3.2% recently.
For high-growth stocks like Shopify, it’s probably best to build a position over time. The stock experienced a +20% pullback from peak to trough in September. Interested investors should see this kind of correction as an opportunity to expand one’s position.
Shopify stock has strong momentum and has been consolidating sideways since mid-2020. If it continues to consolidate like this or revisits the $1,200 level, consider picking up some shares to ride the global e-commerce trend for decades to come!
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 Kay Ng owns shares of Brookfield Infrastructure Partners, Brookfield Infrastructure Corp. and Shopify. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool recommends BROOKFIELD INFRA PARTNERS LP UNITS and Brookfield Infrastructure Partners.