Any time can be a good time to buy Canadian stocks. In the short term, stocks fluctuate up and down. However, if you buy stocks in very high-quality businesses and hold them for a very long time (five or more years), valuations matter less and less. Why? Because, over long periods of time, high-quality businesses produce strong earnings growth and enjoy great market returns. If you got as little as $500, here are four stocks you could buy and hold for a lifetime.
A top Canadian financial stock
A stock almost every Canadian can own is Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM). Amongst Blackstone and BlackRock, it is one of the premier alternative asset managers in the world.
It has over $600 billion of assets (like real estate, infrastructure, renewable power, and private equity) under management. Unlike its peers, it actually invests alongside its shareholders and institutional clients. Consequently, it also gets to capture upside from its funds and public subsidiaries.
It just released very solid second-quarter results. Funds from operation per share and distributable earnings were up 38% and 14%, respectively. Somehow the market was expecting better. This Canadian stock has pulled back slightly, but it still looks attractive here.
A top telecom stock
Like Brookfield, TELUS (TSX:T)(NYSE:TU) came out with very strong second-quarter results. It added 223,000 net new customers to its network. This was an industry best. Likewise, it grew revenues, EBITDA, and earnings per share by 10%, 10%, and 8.7%, respectively. In 2021, the company has been accelerating investments into its 5G and fibre optic networks.
These investments should result in strong customer growth and also solid free cash flow expansion in 2022 and 2023. This should lead to continued 7-10% growth in its already attractive 4.4% dividend.
TELUS also continues to expand its higher-growth verticals in digital services, virtual health, and agriculture. These businesses demand higher valuations than Telus’ telecom business. Hence, as they grow, this Canadian stock could get a nice valuation re-rating up.
A top Canadian tech stock
TELUS International (TSX:TIXT)(NYSE:TIXT) was spun out of Telus Corp. in February of this year. It is a great example of the exciting verticals Telus is fostering in its digital ecosystem. Telus International provides a broad array of digital transformation services for some of the largest companies on the planet.
In particular, it has been expanding to become a leader in data annotation, data analysis, artificial intelligence, and the internet of things. It helps companies employ advanced technology to improve and expand their customer relationships and experiences.
This Canadian stock has been enjoying very fast, over 35% revenue growth. Not only that, but it profitably yields a significant amount of free cash flow. Its stock is not cheap, but given its large opportunity ahead, it still has lots of upside over the longer term.
A top real estate stock
Right now is a particularly good time to own real estate. Interest rates are at all-time lows, but rents and asset values continue to rise. That is why Dream Industrial REIT (TSX:DIR.UN) is a pretty attractive Canadian stock to buy now.
It owns a diverse portfolio of warehousing, logistics, and industrial properties in Canada, the United States, and Europe. Today, it is seeing incredibly high demand for its buildings. This is pushing rents up and Dream Industrial can capture very attractive rental spreads on its properties.
Combine a low-levered balance sheet, an aggressive acquisitions strategy, and strong leasing trends, and this stock could be primed for some really attractive cash flow growth this year and for a number of years ahead.
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 Robin Brown owns shares of Brookfield Asset Management Inc. CL.A LV, DREAM INDUSTRIAL REIT, TELUS CORPORATION, and TELUS International (Cda) Inc. The Motley Fool owns shares of and recommends Brookfield Asset Management. The Motley Fool recommends Brookfield Asset Management Inc. CL.A LV, DREAM INDUSTRIAL REIT, TELUS CORPORATION, and TELUS International (Cda) Inc.