The Motley Fool

2 Canadian Stocks I’ll Never Sell

analyze data
Image source: Getty Images

If you want to invest for the long-term and buy Canadian stocks the way Warren Buffett would, you need to look for businesses that you’d be happy to own forever.

When speaking about his company’s investment philosophy Warren Buffett has famously said, “Our favourite holding period is forever.” When Buffett buys a stock, he does so, expecting that it will continue to grow and execute well for decades to come, giving him no reason to ever sell the stock.

And although you may look to own these companies long-term, sometimes things happen that can make you sell early.

The best Canadian stocks to own for the long term, though, are core businesses that can power your portfolio. You want to look for businesses that will continuously grow and expand their operations, while also being robust enough to withstand market and economic downturns.

Over time through the ups and downs of the market, these core stocks will ensure your capital is not only protected but also consistently growing.

And often, these core Canadian stocks will pay an attractive dividend that only helps your portfolio to compound even faster.

So without further ado, here are two Canadian stocks that I don’t think I’ll ever sell.

A top Canadian telecom stock

One of the best businesses you can buy and will likely never have to sell is telecom stocks. That’s why BCE (TSX:BCE)(NYSE:BCE) is one of my core holdings I don’t think I’ll ever get rid of.

In the past, telecommunications was important, but it was more of a discretionary service, especially for consumers. Now, however, the telecommunication industry is crucial to today’s economy.

And with continuous innovation, most recently with the introduction of 5G technology, stocks like BCE continue to find new ways to consistently expand their operations.

As well, 30 years ago, BCE would have been a solid long-term investment, and 30 years from now, I expect the stock to continue to be a major company in the Canadian economy.

Plus, with all the cash flow it earns, it’s consistently increasing its payout to investors. So on top of the 5.6% yield, you can earn buying the stock today, you know that income will continue to grow over the years.

A top utility and renewable energy business

Another high-quality Canadian stock I don’t think I’ll ever sell is Algonquin Power and Utilities (TSX:AQN)(NYSE:AQN).

Algonquin is another highly stable dividend stock that consistently increases its payout to investors. The company owns a portfolio of gas, water, and electric utility businesses across several states.

Utility stocks are well known to be highly defensive, which is a major reason why you can have confidence owning Algonquin long-term. And they aren’t just defensive, but they will also be around forever, making them ideal stocks to buy for the core of your portfolio.

Algonquin, though, also has an exciting portfolio of renewable energy assets. These not only help diversify the business but also offer considerable growth potential as the world continues a decades-long shift to cleaner energy.

It’s this combination of stability and long-term growth potential that makes Algonquin one of the best Canadian stocks to own long-term. Therefore, it’s a stock I can’t ever see myself selling.

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 Daniel Da Costa owns shares of ALGONQUIN POWER AND UTILITIES CORP. and BCE INC. The Motley Fool has no position in any of the stocks mentioned.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.