Stock investing isn’t without risks, but investors can reap enormous rewards by going long on their chosen equities. Many of these patient investors have even doubled their money in five years.
Today, the potential to derive the same benefit through passive investing is high. You can buy three safe stocks and hold for the long term. Their share prices are more than double or nearly double than they were in 2017.
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Everything in between
Thomson Reuters (TSX: TRI)(NYSE:TRI) Thomson Reuters has been in operation since 1851 and is the leading provider of business information services worldwide. The operations of this $61.26 billion company focus on law, tax, compliance, government, and media. Management describes its team as technologists, accountants, lawyers, editors, and everything in between.
As of June 6, 2022, the share price is $175.63, or 75.57% ($50.16 per share) higher from five years ago. Thomson Reuters belongs to the TSX’s distinguished list of Dividend Aristocrats. The stock boasts a dividend-growth streak of 28 years. If you invest today, the dividend yield is 1.81%.
In Q1 2022, total revenues and operating profit increased 6% and 7% versus Q1 2021. Thomson Reuters’s president and CEO Steve Hasker, said, “The momentum we saw throughout 2021 continued to build in the first quarter of 2022, with both sales and revenue exceeding our expectations.”
Hasker added, “Our businesses are benefiting from significant prevailing tailwinds driven by a step change in the complexity of compliance in our legal, tax, and risk-related markets.” Management hopes to translate the current momentum into sustainable long-term value creation.
Price performer
Imperial Oil (TSX: IMO)(NYSE:IMO) benefits from high crude prices in 2022 and continues to outperform the broader market year to date at +55.32% versus -1.90%. The energy stock trades at $70.09 per share compared to $32.95 five years ago. Last year was a banner year for the subsidiary of American oil giant ExxonMobil.
In 2021, Imperial Oil reported a net income of $2.47 billion as against the $1.85 billion net loss in 2020. It also generated about $4.5 billion in free cash flow for the year. Its president and CEO Brad Corson said the full-year results demonstrated the strength of the integrated business model.
The $46.9 billion crude oil and natural gas producer has increased its dividend for 27 consecutive years, and the most recent increase was 26%. Imperial Oil’s current yield is 1.95%.
Low-volatility, regulated assets
Emera (TSX: EMA) is a defensive pick for the low-volatility nature of the business. The $16.46 billion regulated utility company generates, transmits, and distributes electricity to customers in Canada, the U.S. and four Caribbean countries. In Q1 2022, net income climbed 32.9% to $362 million versus Q1 2021.
Scott Balfour, Emera’s president and CEO, said, “Our regulated utilities performed well this quarter, particularly in Florida where robust economic and customer growth continue.” The share price five years ago was only $38.68. As of this writing, Emera trades at $62.57 per share and pays a hefty 4.19% dividend.
Earn two ways
Since Thomson Reuters, Imperial Oil, and Emera are Dividend Aristocrats, your overall return should be higher. Apart from the price appreciation, there are recurring cash inflows from dividends.
