The search for long-term buy-and-hold stocks is always on. As a long-term investor myself, I tend to spend more time looking at historical charts than many investors these days. Momentum stocks that swing wildly in one direction or another may be more exciting. However, companies that offer steady and stable returns over the long term are much more satisfying from a long-term perspective.
In this view, here are two top buy-and-hold stocks to consider right now.
Top buy and hold stocks: Fortis
Fortis has emerged as a Dividend Aristocrat of tremendous proportions. This firm has shown considerable ability to raise its dividend consistently for nearly 50 years. This is what long-term investors with income needs look for in core portfolio holdings.
Fortis provides investors with not only a stable and consistent dividend, but solid dividend growth over time. For those nearing or entering retirement, this company is one of the best such income plays in the market right now.
These dividends are supported by an extremely stable business model. Indeed, Fortis’s cash flows are about as stable as they come in the market. The company’s stock price has remained relatively stable of late. However, I expect the company’s 3.8% dividend yield to come down as investors price in additional hikes in the future.
One of the top buy and hold stocks I’ve been pounding the table on for a long time is Restaurant Brands (TSX:QSR)(NYSE:QSR). Indeed, fast food isn’t going anywhere anytime soon. Consumers absolutely love the brands held in the Restaurant Brands’s portfolio.
Whether it’s Burger King, Tim Hortons, or Popeyes restaurants, consumers are extremely loyal to these brands. Indeed, Restaurant Brands has relied on the strength of these brands to post strong results of late. On July 30, 2021, Restaurant Brands announced $1.4 billion as revenue, representing a 37% growth over the next year.
Accordingly, this is a growth stock that’s worth considering on this basis along. However, investors may be surprised to know that Restaurant Brands is cheaper than McDonald’s. The former trades at 22 times its future earnings compared to the latter’s 27.
Finally, dividends matter a lot for any investor. Here too, Restaurant Brands also offers a solid dividend of 3.4%, much higher than its peers.