Most beginner investors in Canada start by investing in their registered accounts. Both the RRSP and TFSA offer a great way to shelter your investment from the clutches of the CRA. The TFSA especially offers more flexibility and is ideal for starting a beginner portfolio, especially if you only have limited capital to work with and can’t split your savings into both registered accounts.
Regardless of whether you place them in your TFSA or RRSP, three companies should be on your radar if you are looking for investments you can hold for decades.
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A telecom giant
Out of the three telecom giants in Canada, Telus (TSX:T)(NYSE:TU) has the most consistent growth stream, which, coupled with its juicy 4.4% yield, makes the return potential quite significant.
It’s also one of the most promising 5G stocks in Canada, and even though its current reach and infrastructure are a far cry from Rogers, the leader in this domain, the company has committed a significant amount of resources to grow its 5G presence in Canada.
The stock has returned roughly 107% to its investors in the last decade through price appreciation alone, and as an aristocrat, it has been growing its payouts for 18 years. As a long-term investment, not only is the company capable of helping your capital stay well ahead of inflation, but any passive-income stream you start with this company will also remain beyond inflation’s reach.
An industrial giant
Another good long-term investment you can hold in your registered accounts is Waste Connections (TSX:WCN)(NYSE:WCN). It’s one of the largest publicly traded solid waste management companies in the world, with an impressive presence in Canada and the United States. And thanks to its extensive service portfolio, a decent portion of which caters to businesses, the company has a lot of growth opportunities.
It’s a powerful growth stock that returned roughly 84% to its investors in the last five years, and if it keeps growing at this pace, you might be able to double your capital in the next seven to eight years.
However, its longevity as an investment comes from more than just its growth potential or its status as a Dividend Aristocrat, but the safety of its business model. It’s an essential service expected to remain relevant for decades to come.
An infrastructure company
Brookfield Infrastructure (TSX:BIP.UN)(NYSE:BIP) represents the infrastructure wing of Brookfield Asset Management, one of the largest asset management companies in Canada. The company has a portfolio of high-quality assets like utilities and transport and more time-relevant assets like operations. The geographic diversification of its portfolio also adds to the stability.
The stock is a safe bet and will likely remain one for several decades to come, but safety is not the only thing it offers. It’s a healthy grower that has been consistently on the rise since 2009 and has grown over 600% since then. That’s over 46% growth a year (annualized), and the consistency of its growth is another reason to hold this winner long term.
Foolish takeaway
The three companies are ideal beginner stocks, but that doesn’t mean they are not useful in the portfolios of seasoned investors. They offer a decent mix of growth and stability, making them ideal for the simplest and more complex investment portfolios.
