Investing in the stock market has become increasingly popular in recent years as a growing number of Canadians continue to realize the importance of making their money work for them. Setting aside your cash in a high-interest savings account is no longer going to provide you with enough returns to help your savings keep pace with rising inflation rates.
Fixed-income assets like bonds and GICs don’t provide high enough returns to fulfill that purpose either. Stock market investing in the right TSX stocks can provide you with significant investment returns to keep pace with or even beat inflation.
If you’re just starting investing, be aware that you can take several possible approaches to create a self-directed portfolio of stocks to enjoy stellar shareholder returns. One of the best ways to invest is to buy and hold shares of high-quality companies that can provide you with reliable shareholder returns in the long run despite changing operating environments and macroeconomic conditions.
Today, I will discuss two excellent long-term buy-and-hold TSX stocks that could be ideal for you to consider adding to your investment portfolio.
Waste Connections
Waste Connections(TSX: WCN)(NYSE: WCN) is a $45.28 billion market capitalization company that might not belong to a very exciting industry but plays a critical role in the economy. Regardless of what happens, proper waste disposal will remain a priority. Waste Connections stock can also perform well when the economy is doing well, making it an ideal all-weather stock for risk-averse investors to own.
Waste Connections stock is trading for $173.79 per share at writing and is up by 34.33% year to date. Waste Connections stock could be an ideal pick if you are looking for an asset that you can buy and forget in your portfolio to enjoy gradual but reliable long-term wealth growth.
Restaurant Brands International
Restaurant Brands International (TSX: QSR)(NYSE: QSR) is the $34.63 billion market capitalization fast-food industry giant that owns Burger King, Tim Hortons, and Popeyes Louisiana Kitchen. With three powerful brands in the fast-food industry under its belt, QSR stock has historically generated significant revenues over the years.
However, Tim Hortons and Burger King, the two brands responsible for most of the company’s revenues, have stumbled in recent years due to increasing competition in the industry. The latest results showed underwhelming results, particularly at Burger King. Despite its recent weakness, QSR stock has made several investments to improve its long-term performance.
Its focus on modernization and technological innovation could set the company up for a strong future. At writing, the stock is trading for $73.70 per share. It is down by almost 3% year to date, but it could be a steal for buy-and-hold investors at its current levels.
Foolish takeaway
As equity markets continue to soar to or hover around new all-time highs toward the end of the year, many high-quality stocks are trading in an overvalued territory. Still, there are opportunities for investors willing to take advantage of companies trading for attractive valuations with the potential to deliver stellar long-term shareholder returns.
Waste Connections stock and Restaurant Brands International stock could be excellent investments to consider for this purpose.
