It’s no secret that the earlier you start saving and investing your money, the longer you give it to compound, and the larger your portfolio will ultimately grow to be. And, of course, in addition to giving yourself the longest timeline possible to invest, it’s also crucial to find the best Canadian stocks to own through retirement.
The best stocks to buy are in companies you can own for years. These are stocks that you can buy now at whatever stage of investing you’re in and hold confidently through retirement.
So, if you’re looking to add to your portfolio, especially as stocks have gotten cheaper lately, here are three of the best Canadian stocks you can own through your retirement.
An excellent residential REIT
Real estate is an excellent industry to find Canadian stocks you can own through retirement. It offers excellent growth and is exceptionally reliable. And one of the best real estate stocks for dividend investors to buy is Canadian Apartment Properties REIT (TSX.CAR.UN).
CAPREIT owns properties all across Canada and even owns assets in Europe. It’s incredibly diversified, and because it’s so massive and such a popular investment, it’s highly liquid. These are two significant advantages to investing in a residential REIT. In addition, you get a professional management team and access to a tonne of high-potential deal flow.
However, one thing that may stand out to dividend investors about CAPREIT is that its current yield is slightly low at just 2.65%. But while the REIT isn’t paying out a tonne of capital, it retains much of its cash flow to invest in growth.
This has led to investors earning a total return of 100% over the last five years, a compounded annual growth rate of roughly 15%. So, if you’re looking for a highly reliable company that will consistently expand its portfolio and increase its distributions, then CAPREIT is one of the best Canadian stocks to buy today and own all through retirement.
A top telecom stock
Another excellent industry to find high-quality passive-income generators is telecommunications. That’s why one of the best Canadian stocks to own is Telus (TSX: T)(NYSE: TU).
First off, Telus pays a better dividend than CAPREIT. It also offers excellent long-term growth potential. Telecommunications is also a highly resilient industry, much like residential real estate. So, it’s one of the best Canadian stocks to buy and hold for years and a perfect stock for retirement.
As I mentioned, its dividend currently yields upwards of 4.35%, considerably more than CAPREIT. And because it’s constantly growing its business, especially now as 5G technology is being rolled out, Telus is also consistently increasing its dividend.
Over the last five years, Telus, an almost $40 billion company, has grown its sales by more than 30%. Furthermore, its cash from operations has increased by 35% over that period.
If you’re looking for a high-quality dividend stock that you can confidently hold for years, even through retirement, Telus is one of the best.
An incredible Canadian infrastructure stock
Lastly is one of the best and most unique investments in Canada, Brookfield Infrastructure Partners (TSX: BIP.UN)(NYSE: BIP). Brookfield owns a massive and diversified portfolio of highly reliable and defensive infrastructure assets all over the world, which is why it’s one of the best Canadian stocks to buy and hold for retirement.
Although Brookfield is naturally safe and reliable due to its assets, the fund’s goal is to grow investors’ capital by up to 15% annually by focusing on long-term investing. To do this, Brookfield looks all over the globe for undervalued or underperforming assets it believes it can turn around.
It then uses its expertise to improve the operations and grow the cash flow these assets generate, ultimately increasing the total income of the fund. In addition, it also increases the value of these assets and can choose to sell them at higher prices and recycle the capital into new projects it’s identified.
This simple and consistent strategy, combined with its impressive execution, is why Brookfield Infrastructure is such an excellent investment. So, if you’re looking for one of the best Canadian stocks that you can own for years and even through retirement, Brookfield is one of the first to consider.
