While many investors, especially those investing for retirement, focus strictly on finding the best Canadian stocks to buy when putting their money to work, that’s not the only factor contributing to successful investing. In addition, it’s paramount that investors have discipline and patience when investing their money in stocks.
That means forgoing more speculative investments that offer short-term potential and focusing on finding high-quality stocks that you can count on to grow your money for decades.
Itâs well known that long-term investing is one of the best strategies. For starters, when you buy a stock that you plan to hold for five or 10 years, you don’t have to worry about how it performs in the short term.
However, long-term investing is also beneficial because the best, most dominant companies will often outperform the market for years. So, when you can identify these businesses and add them to your holdings, you can build an impressive portfolio of companies that are constantly outgrowing the rest of the market.
Therefore, whether youâre a younger investor with decades ahead of you or approaching retirement in the coming years, here are two of the best Canadian stocks you can buy and hold for decades.
One of the best dividend-growth stocks to buy and hold for decades
Emera (TSX: EMA) is one of the best and safest stocks Canadian investors can buy and hold until retirement for several reasons. Firstly, it’s a utility stock providing electricity and gas services, which are essential to both its residential and commercial customers. In addition, utilities are an industry regulated by the government, which also helps to reduce risk.
In addition to Emera’s core business being highly safe, the stock is also well diversified, with operations in six different countries across North America. Not only that, but Emera’s financials are in great shape, allowing investors to have confidence buying and holding the Canadian Dividend Aristocrat for years.
And going forward, Emera will continue to expand its operations and grow its earnings. In addition, the stock is planning to increase the dividend by at least 4% each year until 2025.
So, with the Dividend Aristocrat already offering a 4.3% yield today, and considering it’s one of the least-volatile stocks on the market, it’s certainly one of the best Canadian stocks that you can buy today and hold until retirement.
This large-cap Canadian stock is perfect to buy and hold for retirement
Another high-quality and reliable Canadian stock you can buy with confidence today is Enbridge (TSX: ENB)(NYSE: ENB).
While most of Enbridge’s business isn’t regulated like Emera, the stock is still highly reliable for many of the same reasons. Just as it’s crucial that customers of Emera have access to electricity and gas, Enbridge’s operations are crucial to the entire North American economy.
For example, the stock moves about 30% of all the crude oil produced in North America and transports nearly 20% of the natural gas consumed in the United States. So, its operations are incredibly important to the North American economy, which is why it’s one of the most reliable stocks you can buy and hold until retirement.
Plus, because pipelines have massive barriers to entry, and because many of these assets require little maintenance, Enbridge is in an excellent position, and it continues to be a major cash cow. That’s why it’s no surprise that, like Emera, it’s a Canadian Dividend Aristocrat. And right now, its stock offers an impressive dividend yield of 6%.
If you’re looking for a highly reliable Canadian stock that pays an attractive and growing dividend, Enbridge is one of the best to buy now.
