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.
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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.
