Investing in the right set of equities can allow for individuals to fulfill short- and long-term goals. Finding stocks to buy now and hold forever sounds simple enough. Businesses with both staying power, and the ability to return capital to shareholders, are ones that generally produce that generational wealth investors are after.
However, picking the right stocks to hold onto for the long term isn’t easy. Here are two of my top picks for investors looking for a place to start.
Stocks to buy now: Restaurant Brands International
Restaurant Brands (TSX: QSR)(NYSE: QSR) has been among my top picks for some time. Much of this has to do with the company’s size and position in its particular market. The fifth-largest fast-food operator in the U.S., Restaurant Brands operates under four banners: Burger King, Tim Hortons, Popeyes, and Firehouse Subs.
These businesses are highly defensive and are ones that have shown the ability to growth through difficult times. Indeed, in times of distress, many consumers choose to ditch the high-priced fine dining restaurant and go for something fast. This is a simple, yet easy to understand, thesis that has proven the test of time.
Should we be headed into a recession or not, I like Restaurant Brand’s long-term growth prospects. This company is still set to grow its footprint in Asia to a remarkable degree. And with recent results beating estimates, I think the Street is finally starting to catch on.
This company brought in $1.6 billion in revenue for the past quarter, earning $0.82 per share. Accordingly, the company has used much of its earnings to pay investors a hefty dividend yield of 3.6%. That’s the kind of business I like to own for the very long term.
Royal Bank of Canada
Royal Bank of Canada (TSX: RY)(NYSE: RY) is another long-term stock to buy now and never sell. Looking at this company’s long track record of performance, investors can see what being a top-10 global bank can do in terms of earnings growth over time.
Indeed, Royal Bank’s valuation over time has generally trended higher, alongside its earnings. This bank trades at only 11 times earnings at the time of writing, despite having a dividend yield around 4%. For those looking for meaningful total returns (capital appreciation plus dividends), Royal Bank provides a very nice mix.
This is a lender with an absolutely massive footprint of over 17 million clients across 29 countries. Focused mostly on Canada and the U.S., Royal Bank has also diversified into other higher-growth regions. Additionally, this is a diversified lender, offering everything from everyday banking services to wealth management, capital market products, and other businesses globally.
Like Restaurant Brands, Royal Bank’s recent earnings were very solid, and more than support long-term dividend growth for investors. In my view, investors should consider owning one or both of these stocks in a long-term portfolio.
