Investing should always be thought of as a long-term project. Generally, I try to hold positions for a period of five years or longer. With that in mind, where would I put my money today? In this article, I’ll discuss three stocks that investors should consider buying for the next five years.
Invest in the e-commerce industry
If I could only choose one industry to invest in for the next five years, it’d be the e-commerce industry. It’s projected that e-commerce sales could grow by 50% over the next four years. With that in mind, the companies that lead the industry over that period should see a lot of growth as well. In my opinion, Shopify (TSX: SHOP)(NYSE:SHOP) is still a solid buy today.
What attracts me to Shopify is its ability to acquire customers of all sizes. The company offers a variety of plans, which are suitable for merchants regardless of what stage the business may be in. On the low end of the spectrum, Shopify offers solutions that could help a first-time entrepreneur get started in the industry. At the opposite end of the spectrum, Shopify has managed to attract many large-cap enterprises including the likes of Netflix and Tesla.
This company could be a powerhouse
If you’re looking for a less volatile stock, then consider investing in Brookfield Renewable Partners (TSX: BEP.UN)(NYSE: BEP). This company is one of the largest producers of renewable utilities, globally. Its facilities are capable of generating more than 21 GW. After the completion of its current construction projects, Brookfield Renewable estimates that it will more than double its current generation capacity. That would solidify its position atop the renewable utility industry.
In terms of its stock, the company aims to generate an annualized return of 12-15%. Since its inception, Brookfield Renewable has managed to hit that mark, generating an annualized return of 17%. The company has also managed to increase its dividend at a CAGR of 6% over the past 11 years. That makes it a Canadian Dividend Aristocrat and puts it among the elite dividend stocks in the country. If you’re looking for a stock that could produce reliable growth and provide a steady dividend as well, this is a stock for you.
A top financial institution
If you’re not completely sold on Brookfield Renewable, then perhaps its parent company may be more interesting. Brookfield Asset Management (TSX:BAM.A)(NYSE: BAM) is a renowned financial institution. It has about $725 billion of assets under management, making it one of the largest alternative asset management firms in the world. Through its subsidiaries, Brookfield has exposure to the infrastructure, real estate, renewable utility, and private equity markets.
Since its IPO, Brookfield stock has been very successful. It has returned more than 3,700% since 1995, even before accounting for dividends. If you’re in the market for a stock that could grow reliably over the long run, then Brookfield Asset Management is a company you should really consider.
