Millennial investors have been tested by a series of momentous events since the Great Recession. This has included the fallout from the financial crisis, the rise of disruptive populist politics, a generational pandemic, and now the largest conflict on the European conflict since the Second World War. Fortunately, these years have also provided huge opportunities for millennials. As usual, the most patient investors have reaped the biggest rewards. Now, this generation of investors will be forced to navigate soaring inflation and an uncertain rate-tightening cycle.
Today, I want to look at three TSX stocks that this cohort can trust for the long haul.
The top TSX stock is also one of the most dependable
Royal Bank (TSX: RY)(NYSE: RY) is the largest financial institution in Canada and the biggest TSX stock by market cap. Millennials should feel good about snatching up Canadian bank stocks, which have proven to be dependable profit machines in recent decades. Shares of this TSX stock have dropped marginally in 2022 as of close on April 12. The stock is still up 16% from the previous year.
The bank released its first-quarter 2022 results on February 24. Net income increased 6% in the year-over-year period to $4.1 billion. Meanwhile, diluted earnings per share jumped 7% to $2.84. Royal Bank reported net income growth of 10% and 24%, respectively, in its Canadian & Personal Banking and Wealth Management segments.
Shares of this TSX stock possess a favourable price-to-earnings (P/E) ratio of 12. Millennials can also count on its quarterly dividend of $1.20 per share. That represents a 3.5% yield.
Why millennials should buy the dip in Air Canada in 2022
Air Canada (TSX: AC) is the largest commercial domestic airliner. This TSX stock was one of the best performers in the Canadian market over the course of the 2010s. It looked poised to continue this dominance to kick off this decade. However, the COVID-19 pandemic devastated the airline industry. Air Canada is still in recovery mode. That said, investors should be encouraged as it has steadily increased capacity.
This TSX stock has climbed 8.6% month over month at the time of this writing. However, the stock is still down 17% over the previous year. In the fourth quarter of 2021, Air Canada posted operating revenue growth of 30% to $2.73 billion. Meanwhile, it posted record cargo revenues of $1.49 billion.
Millennials should be eager to jump on Air Canada stock in the spring of 2022. This TSX stock is still trading in attractive value territory compared to its industry peers.
Here’s a TSX stock millennials can rely on for decades
Fortis (TSX: FTS)(NYSE: FTS) is the third TSX stock I’d suggest for millennials in the middle of April. This St. John’s-based utility holding company has been a very strong hold in recent years. Its shares have increased 6.6% in the year-to-date period as of close on April 12.
Millennials should look to target TSX stocks that have a long history of dividend growth, which signals strong reliability. Fortis has achieved 47 consecutive years of dividend growth. Its five-year capital plan aims to dramatically boost its rate base by 2026. Moreover, it is projecting annual dividend growth of 6% through 2025. Millennials have the chance to own a future Dividend King.
