2 Top Canadian Picks for Long-Term Investors to Buy Now

Here’s why Toronto-Dominion Bank (TSX:TD)(NYSE:TD) and Algonquin Power (TSX:AQN)(NYSE:AQN) are two top long-term stocks to buy now.

| More on:
Two colleagues working on new global financial strategy plan using tablet and laptop.

Image source: Getty Images

Long-term investing is certainly one of the best ways for investors to generate wealth. Buying and selling anything over short periods of time typically produces sub-average returns. Indeed, various studies have shown that some of the best-performing portfolios out there (that outperformed even many major hedge funds over the long term) were the portfolios of deceased people or those who forgot about their portfolios altogether.

For those thinking long term, Toronto-Dominion Bank (TSX:TD)(NYSE:TD) and Algonquin Power (TSX:AQN)(NYSE:AQN) are two great options to consider. Let’s dive into why I think these stocks could outperform over a long time horizon.

Top long-term picks: Toronto-Dominion Bank

TD Bank happens to be one of the largest North American banks in terms of assets, catering to over 26 million customers in three key businesses located in global financial centers. This bank is also one of the world’s leading online financial services firms, boasting over 15 million active mobile and online customers. Indeed, TD’s $1.8 trillion of assets held, as of the end of January, is among the most impressive of its peers currently.

Many long-term investors like the current positioning of TD Bank. However, this lender is making moves to ensure it grows its market share lead. Recently, the company announced the acquisition of First Horizon for $13.4 billion in cash. This deal should expand TD’s footprint in the U.S. southeast, while extending its growth opportunities further in the U.S. market.

Indeed, TD stock is more of a U.S. bank than a Canadian bank at this point, given its revenue mix. Those bullish on the strength of the American economy may want to consider TD stock as an excellent long-term holding. After all, from a total-return perspective, there’s a lot to like about this company’s 3.7% dividend yield as well.

Algonquin Power

Algonquin Power owns and operates a portfolio of high-quality non-regulated and regulated transmission, generation, and distribution utility assets. This company is a diversified player in the utilities segment, with a strong and growing renewables business I think is very attractive as well.

Indeed, Algonquin has been investing heavily in its renewables segment. This business unit has provided impressive growth, alongside the stable regulated utility cash flows investors depend upon.

Accordingly, it may not be a surprise to investors to see Algonquin post incredible recent results. The company’s adjusted net earnings rose 23% year over year. These higher earnings were compounded by recent acquisitions, something Algonquin has focused on as a means of growing its market share and top- and bottom-line numbers over time.

Over the long term, I think both Algonquin and TD are great holdings. Thus, investors with a truly long-term investing time horizon may want to look at these stocks right now.

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 Chris MacDonald owns ALGONQUIN POWER AND UTILITIES CORP. The Motley Fool has no position in any of the stocks mentioned.

More on Dividend Stocks

Retirement plan
Dividend Stocks

3 Retirement Stocks to Buy in Your 20s

A retirement stock is not necessarily something you buy when you retire. It also includes a broad spectrum of stocks…

Read more »

Dividend Stocks

Dividend Earners: Stay Invested in 2 Low-Volatility Stocks

Dividend earners can stay invested, despite the extreme market volatility provided they shift to two low-volatility stocks.

Read more »

Businessperson's Hand Putting Coin In Piggybank
Dividend Stocks

RRSP Wealth: 1 Oversold TSX Stock to Buy for Long-Term Total Returns

This top global financial stock looks attractive today for RRSP investors.

Read more »

Dividend Stocks

TFSA Passive Income: 2 TSX Dividend Stars to Buy on the Latest Dip

These stocks look attractive at current prices and deserve to be on your radar.

Read more »

edit Balloon shaped as a heart
Dividend Stocks

Why I’m Never Selling This Top Dividend Stock

This top dividend stock is in a sector that will pretty much always grow, with a dividend that's remained steady…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Got $5,000? Double it With This Passive-Income Stock

This passive-income stock has strong growth ahead as well as a solid dividend. This could lead to you doubling a…

Read more »

Dividend Stocks

Here’s the Next Dividend Stock I’m Going to Buy

As the fear of recession increases, panic increases. At times like these, a dividend stock can mitigate your portfolio's downside.

Read more »

worry concern
Dividend Stocks

Housing Market in May 2022: Buyers and Sellers Are in a Bind

Many homebuyers are re-evaluating their options due to rising inflation and mortgage rates, but sellers hope they would change their…

Read more »