When it comes to investing in stocks for the long run, there are many factors investors ought to consider. Some may be interested in growth. Others may be looking for income. Whatever the goal, there are a number of high-quality TSX stocks that can actually provide both.
For those thinking long term, here are three picks I think can outperform in the decades to come.
Top TSX stocks: Fortis
In North America, Fortis (TSX:FTS)(NYSE:FTS) is a leader in the regulated gas and electricity industry. This company was founded in 1885 and has its headquarters in St. John’s, Canada. This is a holding company that operates through two business segments: namely, regulated utilities and non-regulated utilities.
The regulated utilities segment consists of ITC, which chiefly contains the electric transmission operations of the ITC regulated operation subsidiaries.
The company’s non-regulated utilities segment consists of energy infrastructure. It primarily contains long-term contracted generation assets in British Columbia and Belize as well as other nations.
Fortis’s investment thesis is simple. This company is one that provides meaningful cash flow growth over time, which the company has returned to shareholders in the form of rising dividends. For nearly five decades, Fortis has raised its distribution. Currently, Fortis’s dividend yield sits at 3.5%.
Restaurant Brands
Restaurant Brands (TSX:QSR)(NYSE:QSR), a leading global player in the fast-food market, has over 29,000 restaurants in more than 100 countries. Within this conglomerate’s portfolio are renowned banners Burger King, Tim Hortons, Firehouse Subs, and Popeyes.
Through its Restaurant Brands for Good framework, RBI is improving sustainable outcomes related to food, our planet, people and communities. This is one of a few reasons many investors like this stock here.
However, the key focal point for me with Restaurant Brands is this company’s defensive nature. In good times or bad, folks need to eat. And it’s the lower-end consumer who’s getting hit hardest by inflation right now. Should this situation continue, Restaurant Brands could stand to be a beneficiary of an otherwise weak market.
Telus
Finally, we have Telus (TSX:T)(NYSE:TU). Telus is a Western Canadian telecom player, with a rather intriguing niche in the insulated oligopoly that is Canada’s telecommunications space.
Given the regulated nature of Telus’s cash flows, this company provides investors with a stable dividend yield. Alongside meaningful long-term growth tied to the company’s pricing power, Telus has been a great historical holding for many investors.
With $16 billion in annual revenue and a customer base of $15.2 million, it’s easy to see why. Telus provides everything from wireless data services, to television, IP, voice, video, entertainment, as well as other segments.
While telecom costs remain high in Canada (among the highest in the world), Telus’s stable cash flows and defensive nature are one of the key reasons to look at this stock as a long-term holding.
