Are you looking for the right mix of stocks to buy now and forget for a decade or longer? The market is full of great opportunities, even during times of volatility.
Here are several options to consider buying now.
Image source: Getty Images
Banking on the retail sector and growth
Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is one of Canada’s big banks, but it’s neither the biggest nor the most well known. Fortunately, CIBC is a great long-term investment to buy now and forget about for a decade.
Apart from operating a solid business that includes both a solid domestic and growing international segment, CIBC offers the highest yield among its big bank peers at 4.69%.
Also noteworthy is that CIBC is down over 14% over the trailing three-month period. This makes it an excellent time to buy now and forget for a decade.
Canadian Tire (TSX:CTC.A) is one of the oldest retailers in the country. The company continues to innovate and embrace mobile commerce. In store, the company has integrated the use of technology as an aid to customers in increasingly unique ways.
An example of this is being able to see how new tires handle different driving conditions in a simulator.
Canadian Tire has a growing audience of mobile app users, which includes a digital version of its long-standing weekly flyer. Canadian Tire has also established its own line of exclusive products in different segments. Those products are only sold through its website and in stores, which provides a unique defensive moat over the established e-commerce behemoths.
Finally, Canadian Tire is unique in offering investors a handsome quarterly dividend. The current yield works out to 3.07% — a figure nearly unheard of within the retail space. That factor alone makes Canadian Tire a superb option to buy now and forget for a decade.
We all need to eat: You may as well get rich from your groceries
Grocery stores hold massive potential. They are everyday stocks that fulfill a necessity, yet we often dismiss them as investments — until now. Loblaw (TSX:L) is the largest grocer in the country. The grocery warrants a spot on your buy-now-and-forget-for-a-decade list.
Specifically, Loblaw has over 1,000 stores scattered across every province. The well-diversified portfolio of stores includes a dizzying array of brands in different markets. Loblaw also operates the largest pharmacy network in the country through its Shoppers Drug Mart banner, which also extends across the country.
Over the past few years, Loblaw has dabbled into other areas beyond its core grocery and pharmacy segments. Specifically, the company offers apparel and financial services to customers, which are often showcased within its namesake grocery stores.
Those products and services are complementary to Loblaw’s core business, and they continue to drive revenue for the company.
Loblaw offers a quarterly distribution. The yield works out to a respectable 1.41%, which is not the highest return on the market, but it is stable and growing.
Power is another necessity
Utility stocks represent another great option to consider. Utilities provide a necessary service that is backed by regulatory contracts that can span decades. This makes them incredibly stable options for your portfolio.
TransAlta Renewables (TSX:RNW) represents a great option for investors to consider. TransAlta operates a diversified portfolio of renewable energy investments across Canada, the U.S., and Australia.
Apart from benefiting from the stable business model I mentioned above, TransAlta has an important advantage over its fossil fuel-burning peers. Specifically, TransAlta isn’t straddled with the huge transitional costs that its peers have.
Instead, TransAlta can invest in further growth and continue to pay out its very appetizing dividend. TransAlta’s dividend works out to a juicy 5.34% yield. Even better, it is distributed monthly.
Buy now and forget for a decade
We often look at times of volatility from a negative standpoint. Yes, there is plenty of risk, and, yes, some stocks will fall. Fortunately, the upside to that is that during times of volatility, there are stellar stocks available at staggering discounts.
This is especially true for investors that have long-term timelines.
In other words, buy one or all of the stocks noted above and watch your portfolio grow.
