In the stock market, short-term volatility can be very difficult to handle. Indeed, the uncertainty we’re seeing today is definitely unnerving, particularly for new investors.
That said, over the long term, investors can still expect to outperform cash and bonds by holding a well-diversified portfolio of stocks.
The question is, which stocks should investors own?
There happen to be a number of top TSX stocks worth considering for those with a long-term investing time horizon. Two of my top picks right now are Restaurant Brands (TSX: QSR)(NYSE: QSR) and Manulife (TSX: MFC)(NYSE: MFC). Let’s dive into why.
Top TSX stocks: Restaurant Brands
One of the world’s most prominent fast-food conglomerates in the world, Restaurant Brands is a defensive stock long-term investors may like as a core portfolio holding. We all need to eat, and in times of economic turmoil, companies with lower-priced options are often considered recession-resistant. Such is the case with Restaurant Brands.
Additionally, the parent company of Tim Hortons, Burger King, Popeyes, and Firehouse Subs provides excellent fundamentals. Restaurant Brands recently posted strong results, driven by its more than 10,000 locations across the world. Over time, investors can expect strong growth prospects, as these banners expand into new markets and gain market share.
This strong business model has driven the ability for Restaurant Brands to continue to return capital to shareholders. With a dividend yield of 3.8%, Restaurant Brands provides a bond-like yield underpinned by a robust business model. Those looking for yield have a lot to like about this offering.
Additionally, Restaurant Brands stock trades at around 20 times earnings, a very reasonable level for a company of this quality. Indeed, those with long-term investing ambitions may want to consider this stock right now.
Manulife
Another company I’ve been pounding the table on of late, mainly due to its attractive valuation, is Manulife. Trading at only seven times trailing earnings, Manulife is certainly a “cheap” stock in a sea of otherwise still pricey options.
Manulife’s valuation has remained low for some time, despite this company’s impressive dividend yield in recent years. Currently, Manulife stock bears a dividend yield of 5.2%, which is certainly intriguing for those looking for consistent total returns over time.
Now, there’s always the possibility that Manulife, or any stock for that matter, could cut its yield. However, Manulife has been an extremely stable provider of income for investors over the long term. Additionally, this is a company that is likely to benefit from rising interest rates. Accordingly, for those looking for value and yield, there’s a lot to like about how Manulife is positioned right now.
Over the long term, both Restaurant Brands and Manulife make excellent core portfolio holdings. Those seeking value and yield have two great options to consider in these TSX stocks right now.
