2 TSX Stocks to Buy and Hold for Decades

Restaurant Brands International (TSX:QSR)(NYSE:QSR) and Waste Connections (TSX:WCN)(NYSE:WCN) are top TSX stocks to own for the long haul.

| More on:
stock data

Image source: Getty Images

There are many great TSX stocks out there for investors who prefer a “buy and hold forever” hands-off approach. Indeed, truly wonderful firms with moats wide enough to protect economic profit shares over prolonged periods are tough to come by these days. And those that do have such wide moats tend to trade lofty premium multiples.

With markets quite split going into year’s end, with prominent gaps between the big winners and losers, there are opportunities for contrarians to go against the grain. Indeed, the plate of risks is quite high heading into 2022. Still, for investors willing to take advantage of dips induced by nothing more than mere noise, there is a chance to get a truly wonderful stock at a rare discount.

Top TSX stocks worthy of holding for life

Without further ado, consider Restaurant Brands International (TSX:QSR)(NYSE:QSR) and Waste Connections (TSX:WCN)(NYSE:WCN). These are two TSX stocks that investors should feel comfortable buying and holding for extended durations. Both names have solid dividends poised to grow at a decent rate annually. Like wines, each stock stands to become better with time, given their stable dividends that keep getting more bountiful the longer one holds it at the core of one’s portfolio.

While each firm’s dividend may not be so remarkable today, over decades, that dividend can grow into a dividend that’s more than able to help meaningfully contribute to a passive income portfolio. After a year of turbulence, both wide-moat dividend growth stocks look to be relatively cheap in an otherwise pricy stock market.

Restaurant Brands International

Restaurant Brands International is the firm behind such popular quick-serve restaurant chains as Tim Hortons, Popeyes Louisiana Kitchen, and Burger King. Indeed, the brands are incredibly powerful, but Tim Hortons and Burger King, the two brands that compose most of Restaurant Brands’ revenues, have stumbled in recent years at the hands of some pretty stiff competition. Indeed, the latest results revealed underwhelming numbers, especially at Burger King.

With sluggish comps at Tim Hortons, the relatively meagre results at Burger King have many are growing impatient with the trio of fast-food brands. Still, investors seem to be ignoring the moves made to improve the long-term thesis. Heavy investment in technological innovation and modernization could propel the company back to its former glory.

While it will be hard, investors have much to gain with the bountiful dividend currently yielding just shy of 4%. Sure, QSR managers may have room for improvement, but ultimately, the brands are strong enough to make it through another tough few quarters to better times And for that reason, I believe the 3.2 times sales multiple makes absolutely no sense. If you believe in the power of a good brand, QSR is dirt cheap. In due time, the firm will be right back to rewarding investors with dividend hikes as it continues investing in new initiatives to bolster same-store sales.

Waste Connections

Waste Connections is a boring company, but one that’s necessary, regardless of the state of the economy. Indeed, the firm is one of few that can do well, even in the depths of a recession. During times of economic prosperity, though, Waste Connections is also in a spot to do remarkably well when times are good. Shares of WCN are the perfect stock to hold for all weathers. And for that reason, investors should look to buy shares on any meaningful pullbacks moving forward.

The stock trades at 61.4 times trailing earnings. While that’s not cheap, it’s a quality play worth considering for those looking for a name to buy and forget for decades at a time.

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 Joey Frenette owns shares of Restaurant Brands International Inc. The Motley Fool recommends Restaurant Brands International Inc.

More on Investing

Canadian stocks are rising
Dividend Stocks

1 Dividend-Growth Stock You Won’t Want to Miss in the Real Estate Sector

A growth-oriented REIT is a strong buy today after raising its dividend by more than 5% in each of the…

Read more »

Hand arranging wood block stacking as step stair with arrow up.

Retirement Investors: 3 TSX Stocks That Could Rally With the Economy 

Always buy stocks you are bullish on when they trade below their 52-week highs. A recovery rally can enhance your…

Read more »

some canadian stocks rose

3 Stocks I’ll Load Up on in 2023

Toronto-Dominion Bank (TSX:TD) is one stock I'll load up on in 2023. There are others, too.

Read more »

Dividend Stocks

Better Buy: Emera Stock vs. Hydro One

Higher-risk utility Emera should provide higher returns over the next five years, given the dip and its higher yield.

Read more »

Growing plant shoots on coins
Tech Stocks

3 Growth Stocks That Look Ready to Double in 1 Year

These three growth stocks are "sleeping giants" ready to blast off in 2023 and beyond for investors who pick them…

Read more »

Payday ringed on a calendar
Dividend Stocks

Passive-Income Hat Trick: 3 TSX Stocks to Buy for Monthly Cash

Investors seeking passive income can invest in these Canadian dividend stocks and earn attractive monthly passive income.

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Get Passive Income of $435/Month With This TSX Stock

Here’s how dividend investing in Canada could help you get reliable monthly passive income.

Read more »

Money growing in soil , Business success concept.
Dividend Stocks

2 Undervalued Growth Stocks to Buy Right Now

Once a growth stock becomes too heavily discounted or undervalued, investors begin to wonder about its ability to bounce back,…

Read more »