Finding that perfect mix of investments can be tough. The market is volatile, more so now than in recent memory. There’s also the question of whether to focus on growth or income-producing stocks. For new investors, this can be daunting. Fortunately, there are plenty of great stocks on the market to buy now and hold for a decade.
Here’s a look at some of those stocks.
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If income is your thing…
BCE (TSX:BCE)(NYSE:BCE) is one of the largest telecoms in Canada. The company offers subscription services across wired, wireless, TV, and internet segments to customers from coast-to-coast. Additionally, BCE operates a media segment comprising dozens of radio and TV stations as well as professional sports teams.
In other words, BCE is a behemoth, with multiple segments generating reliable, recurring revenue. Some of those segments, such as the wireless and internet business are continuing to see strong growth. That growth is being fueled by office staff who continue to work (and will likely remain) in a remote capacity.
In terms of a dividend, BCE offers investors a quarterly dividend that works out to a juicy 5.58%. This not only exceeds BCE’s telecom peers but also comes in at one of the best yields on the market. If that isn’t enough, prospective investors should note that BCE has been paying dividends without fail for well over a century.
In short, BCE is one stock that is worth buying now to hold for a decade.
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One area of the market that is growing rapidly at the moment is renewables. The importance of transitioning to renewables has never been greater. Fortunately, that message has finally made its way around the globe, which is driving this latest growth spurt.
That’s where the appeal of owning TransAlta Renewables (TSX:RNW) comes into play. TransAlta is a renewable energy stock that has assets across Canada, the U.S., and Australia. Further to that, the company’s facilities are diversified across different elements such as wind, solar, hydro, and gas.
But what makes TransAlta a stock to buy now and hold for a decade?
In short, TransAlta follows the same model as traditional utilities do, only without the huge transitional costs. Think reliable, recurring revenue, and a handsome dividend.
Speaking of which, TransAlta’s dividend is paid out monthly and carries a yield of 5.71%.
How about something more, defensive?
Adding a defensive stock or two to your portfolio is always a good idea. But what stock should investors turn to? Canadian National Railway (TSX:CNR)(NYSE:CNI) is a great long-term option to consider.
Canadian National is the largest railway in Canada, and one of the largest on the continent. It’s also the only railroad with access to three coastlines in North America. Furthermore, its railway has direct access to the Port of Prince Rupert, which is the closest North American port to Asia.
Why is that important, and why is Canadian National considered a defensive stock?
The answer to both questions is the same. What most people may not realize is how important railroads remain to the transportation of goods and raw materials, even in 2022. Rail connects nearly every major metro area on the continent to ports, warehouses, and factories everywhere.
For Canadian National and its vast network of over 32,000 kilometres, that translates into more than $250 billion worth of freight each year. Keep in mind that the freight CN carries can be anything from automotive parts and metals to chemicals and crude oil.
In other words, CN plays a vital role in the entire North American economy, which makes it a stock to hold for a decade or more. As an added bonus, CN also provides investors with a respectable quarterly dividend, which works out to 1.91%.
There are stocks to hold for a decade. Will you buy them?
No investment is without risk. That’s more true these days than at any time in recent memory. Fortunately, the three stocks outlined above are stellar investments that boast defensive appeal as well as significant growth prospects.
In other words, buy them, hold them for a decade, and watch your portfolio grow.
