2 Buy-and-Forget Stocks to Hold for a Decade

The market is full of great long-term opportunities for investors. Here are two stellar buy-and-forget stocks to hold for a decade or more.

| More on:
edit Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.

Image source: Getty Images

One of the most frustrating things new investors struggle with is when to sell a stock. In short, timing and patience (or lack thereof) can make a huge difference to your long-term portfolio. To counter that concern, let’s look at some stocks to hold for a decade or longer.

Growth and income come standard

Canada’s big banks are some of the best long-term options on the market. There are plenty of reasons for that view, but it ultimately comes down to several factors. First, is the stability of the Canadian financial market, particularly in comparison to the U.S. market. Specifically, the U.S. financial market typically has a sharp pullback every decade.

That same can’t be said of Canada’s big bank stocks. The big banks are not immune to volatility, but they are well covered and regulated, which minimizes risk.

Second, that stability has helped the banks to become well-capitalized staples of the entire economy. In fact, in the case of Toronto-Dominion Bank (TSX:TD)(NYSE:TD), the bank has well over a century of solid growth to fall back on.

That’s not to say that TD hasn’t seen some incredible growth. The bank has taken an aggressive stance toward growth in the past decade. This has allowed the bank to expand rapidly into the U.S. market, becoming one of the largest banks in the U.S.

Today, TD’s U.S. branch network is larger than its Canadian network stretching from Maine to Florida. Incredibly, that’s not even factoring in TD’s latest acquisition — the US$13.4 billion deal for Horizon Bank. The deal will expose TD to several new U.S. state markets.

In terms of a dividend, TD offers investors a quarterly dividend. The current yield works out to an appetizing 3.71%. Prospective investors should note that TD has paid out dividends to investors without fail for well over a century. This fact alone makes TD one of the buy-and-forget stocks to own for a decade or more.

Set your portfolio on autopilot

When compiling a list of buy and forget stocks to own for a decade or longer, the defensive appeal, as well as the income potential, are both key factors.

Fortunately, both are key points when it comes to Canadian Utilities (TSX:CU).

Utility stocks are some of the best and most stable long-term options on the market. They generate stable and recurring revenue streams that are backed by incredibly long-term contracts. In fact, many of those regulated contracts span decades in duration.

What this means is that companies such as Canadian Utilities generate a stable and recurring revenue stream that is unaffected by market volatility or sentiment. That’s an incredibly defensive option suitable for any portfolio.

Perhaps best of all is Canadian Utilities’s dividend. The current yield on that dividend is 4.46%, making it one of the better-paying options on the market. If that weren’t enough, there are two other notable points on that dividend.

First, unlike most companies, Canadian Utilities pays out on a monthly cadence. This could be beneficial to some investors looking for a stable recurring income stream.

Finally, let’s talk about dividend growth. Canadian Utilities boasts an incredible streak of 50 consecutive years of dividend increases without fail. This makes the stock the only Dividend King in Canada and a staple for any investor looking for stocks to hold for a decade or longer.

Stocks to hold for a decade or longer are everywhere

Both TD and Canadian Utilities are great long-term options that are well suited for any well-diversified portfolio. In my opinion, one or both are great buy-and-forget stocks for a decade or longer of uninterrupted growth.

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 Demetris Afxentiou has positions in The Toronto-Dominion Bank. The Motley Fool has no position in any of the stocks mentioned.

More on Stocks for Beginners

Plane on runway, aircraft
Stocks for Beginners

Up 53% From its 52-Week Low, Is Cargojet Stock Still a Buy?

Cargojet (TSX:CJT) stock is up a whopping 53%, nearing closer to 52-week highs from 52-week lows, so what's next for…

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

potted green plant grows up in arrow shape
Stocks for Beginners

3 Growth Stocks I’m Buying in April

These three growth stocks are up in the last year, and that is likely to continue on as we keep…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Stocks for Beginners

3 TFSA Hacks That Could Make You a Millionaire

Do you want a $1 million without worrying about the tax bill? These TFSA hacks could help you become a…

Read more »

Early retirement handwritten in a note
Stocks for Beginners

These 2 TSX Growth Stocks Could Help You Retire Early

Buying these two TSX growth stocks can help you retire early by multiplying hard-earned savings in the long run.

Read more »

Technology
Stocks for Beginners

The Best Stocks to Invest $1,000 in Right Now

Want a great starter portfolio? Here’s a list of the best stocks to invest $1,000 in right now for long-term…

Read more »