2 Stocks to Buy Today and Hold Until You Retire

Are you looking for some great options to buy today and hold until you retire? Here are two options that boast huge income and growth potential.

| More on:
data analyze research

Image source: Getty Images

There’s no shortage of great long-term income stocks on the market. Even better, the volatility that we’ve seen so far in 2022 makes it a great time to buy some stellar stocks. Additionally, many of those options you can buy today and hold until you retire decades from now.

Here are two great options to consider buying now.

Don’t miss this generational opportunity

Renewable energy represents one of the biggest long-term opportunities on the market today. That’s just part of the reason why TransAlta Renewables (TSX:RNW) should be a stock you buy today and hold until you retire.

TransAlta combines the defensive appeal of a traditional utility along with the immense potential of renewable energy investments. The company boasts a portfolio of over 20 facilities scattered across Canada, the U.S., and Australia.

Even better, those facilities include multiple types of renewable energy, such as wind, solar, and hydro.

Finally, like its fossil fuel-burning peers, TransAlta’s facilities are bound by long-term regulatory contracts. In fact, many of those contracts span well into the 2030s or even into the 2040s. This factor alone makes TransAlta a great long-term pick, but the company’s dividend is what should really excite investors.

TransAlta offers a juicy dividend that is paid out on a monthly cadence. The current yield works out to a yield of 5.31%, meaning that a $40,000 investment will earn a monthly income of $177.

Don’t stop yet: Bank on long-term income and growth

If you’re looking for a long-term stock to buy today and hold until you retire, you cannot ignore Canada’s big banks. The big banks are some of the best long-term options on the market. Not only do they offer solid growth, but also provide a handsome (and growing) quarterly dividend.

But which of the big banks belongs in your portfolio? At this point, Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is hard to ignore.

CIBC isn’t the largest of Canada’s big banks, nor does it have the growing U.S. presence of some of its most immediate larger peers. What it does boast, however, is the most attractive yield among its peers, and thanks to a stock split earlier this year, it trades at the lowest overall cost over its peers.

CIBC’s current yield is a juicy 4.90%, which means that the same $40,000 investment will earn a first-year income of $1,960. I say first-year income, because CIBC has an established precedent of providing annual upticks to that dividend. Investors opting to reinvest that income will also see huge bumps over the longer term as that nest egg grows.

That’s not even the best part. CIBC is trading down nearly 10% year to date and has a P/E of just 9.48. In other words, this big bank and long-term dividend gem currently trades at a good discount. This makes it an excellent option to buy today and hold until you retire.

Buy today and hold until you retire

There are plenty of benefits to investing early, but in order to realize those benefits, you need to do it! Fortunately, both options outlined above are great long-term picks that should form part of any well-diversified portfolio.

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 Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Dividend Stocks

The sun sets behind a power source
Dividend Stocks

I’d Put $10,000 Into This TSX Utility Stock Before the Next Rate Announcement

Utility stocks are some of the safest options out there!

Read more »

Female raising hands enjoying vacation, standing on background of blue cloudless sky.
Dividend Stocks

This Stock Makes Me Sleep Like a Baby Every Night

Shares of Fortis (TSX:FTS) could help income investors get a great night's sleep even as the market feels toppier.

Read more »

View of high rise corporate buildings in the financial district of Toronto, Canada
Dividend Stocks

I’d Invest $5,000 in This 7.5% Monthly Dividend Stock Before the Market Catches On

Need some extra cash coming in? Then this dividend stock is the first place investors will want to look.

Read more »

senior man smiles next to a light-filled window
Dividend Stocks

TFSA Passive Income: 2 High-Yield Canadian Stocks for Retirees

These top TSX stocks have increased their dividends annually for decades.

Read more »

Investor reading the newspaper
Dividend Stocks

The 6% Monthly Dividend Stock That Never Disappoints Shareholders

Here's why this reliable 6% monthly dividend stock is one of the best long-term investments you can buy on the…

Read more »

space ship model takes off
Dividend Stocks

3 Canadian Stocks Built to Thrive, Even With Higher Interest Rates

We all worry still about interest rates, but these three Canadian stocks can help keep you on top.

Read more »

Beware of bad investing advice.
Dividend Stocks

The Government Benefit Mistake That Costs Canadians Millions

If you hold iShares S&P/TSX 60 Index Fund (TSX:XIU) in a taxable account, you need to report the dividend income…

Read more »

people relax on mountain ledge
Dividend Stocks

How I’d Build a $1,000 Monthly Income Stream With Just These 2 Stocks

If you need some extra income, and don't we all, these are some of the best recommended stocks to buy…

Read more »