3 TSX Stocks to Hold for the Next 3 Decades

Investors can trust top TSX stocks like Royal Bank of Canada (TSX:RY)(NYSE:RY) and Fortis Inc. (TSX:FTS)(NYSE:FTS) for the next 30 years.

| More on:
data analytics, chart and graph icons with female hands typing on laptop in background

Image source: Getty Images

Canadian investors should be selective in their hunt for TSX stocks they can hold for the long term. In this article, I want to zero in on equities that have promising prospects for the long haul — stocks that have achieved a long history of dividend growth have typically proven that they can deliver consistent earnings growth and positive cash flow. Today, I want to look at three TSX stocks that investors can hold for the next three decades. Let’s dive in.

This green energy stock is well positioned for big growth in the decades ahead

Northland Power (TSX:NPI) is a Toronto-based independent power producer that develops, builds, owns, and operates clean and green power projects in North America and around the world. Canadian investors should look to target green energy stocks, as the renewable power space is geared up for strong growth in the decades ahead. Shares of this TSX stock have climbed 22% in 2022 as of early afternoon trading on August 16. That has thrust the stock into the black in the year-over-year period.

The company released its second-quarter 2022 results on August 11. Northland posted better-than-expects results in the quarter, as sales rose to $557 million compared to $408 million in the second quarter (Q2) of 2021. Meanwhile, adjusted free cash flow per share was reported at $0.70 — up from $0.10 in the previous year. Looking ahead, Northland boosted its expectations for adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), adjusted free cash flow per share, and free cash flow per share.

This TSX stock currently possesses a favourable price-to-earnings (P/E) ratio of 18. Better yet, it offers a monthly dividend of $0.10 per share. That represents a 2.6% yield.

Canada’s top TSX stock is one you can trust for the long haul

Royal Bank (TSX:RY)(NYSE:RY) is the largest stock on the TSX by market cap and the largest of the Big Six Canadian banks. This top bank stock offers stability along with the rest of its profit-machine peers. These equities offer a great balance of capital growth and steady income. Shares of this TSX stock have dropped 5.4% so far this year. The stock is down 1.3% from the same period in 2021.

Investors can expect to see Royal Bank’s third-quarter fiscal 2022 earnings on August 24. This TSX stock possesses an attractive P/E ratio of 11. Moreover, it offers a quarterly dividend of $1.28 per share. That represents a 3.9% yield.

Here’s a TSX stock that is on its way to becoming a Dividend King this decade

Fortis (TSX:FTS)(NYSE:FTS) is the third and final TSX stock I’d look to snatch up for the next 30 years. This St. John’s-based utility and holding company has climbed marginally in the year-to-date period. The stock has climbed 3.4% year over year at the time of this writing.

In Q2 2022, Fortis reported adjusted net earnings of $272 million or $0.57 per share — up from $259 million, or $0.55 per share, in the previous year. This company has delivered 47 straight years of dividend growth. It has put forth an aggressive capital-investment plan that will support a strong expansion of its rate base. A Dividend King is a stock that has achieved at least 50 consecutive years of dividend growth. Fortis is on track to snatch that crown by the middle of this decade.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends FORTIS INC.

More on Investing

Target. Stand out from the crowd
Dividend Stocks

RRSP Pension: 2 Dividend Stocks to Buy on the Latest Dip

These high-yield TSX stocks look cheap right now for RRSP investors.

Read more »

bulb idea thinking

The Smartest TSX ETF to Buy With $1,000 Right Now

Forget the TSX 60 or the TSX Composite. I prefer the TSX Dividend Aristocrats.

Read more »

Canada Day fireworks over two Adirondack chairs on the wooden dock in Ontario, Canada

CPP Benefits Not Enough? This Top Dividend Stock Can Help Fund Your Retirement

Canadian retirees can look to supplement their CPP payout with quality dividend stocks such as Headwater Exploration.

Read more »

grow dividends
Stocks for Beginners

Why Cargojet Stock Is Surging Past 52-Week Highs

Cargojet (TSX:CJT) stock surged by 17% after a new deal was announced, with upgrades coming in as well for the…

Read more »

protect, safe, trust

It’s Time to Defend Your Wealth: 3 Top Stocks to Help Keep What’s Yours

For those looking to defend your wealth against what appear to be robust oncoming macro headwinds should consider these stocks.

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

Safe and Sound Stocks for Canadians: My Top 5 Choices

Five safe stocks to buy on a market pullback.

Read more »

Financial technology concept.

Couche-Tard Stock: Today Is a Huge Buying Opportunity

Alimentation Couche-Tard (TSX:ATD) stock looks like a steal after its latest unwarranted plunge into a correction again.

Read more »

A stock price graph showing growth over time
Metals and Mining Stocks

Why Cameco Stock Soared 23% This Year

Cameco stock continues to ride high on strong supply/demand fundamentals and growing momentum in the nuclear industry.

Read more »