The Canadian stock market offers investors many stocks that could be great holds in their portfolio. However, this can cause issues for new investors, as having a large number of great choices can become overwhelming. In this article, I’ll discuss three TSX stocks that investors should buy today and hold forever. I believe these three stocks could provide your portfolio with market-beating growth over the long run.
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Buy this impressive Canadian stock
Canadian National Railway (TSX: CNR)(NYSE: CNI) is the first stock that investors should buy today. It is the largest railway company in Canada. As of this writing, Canadian National operates nearly 33,000 km of track. Its rail network spans from British Columbia to Nova Scotia. The company also operates in the United States, with track as far south as Louisiana. This large presence within the North American railway industry has made Canadian National one of the most recognizable companies in the country.
Over the past five years, Canadian National stock has gained 55.4% (dividends excluded). Over that same period, the TSX has gained 28.6%. That means Canadian National stock has nearly doubled the performance of the broader market over the past five years. Speaking of its dividend, Canadian National has managed to increase its dividend distribution in each of the past 26 years. That places it among the elite Canadian dividend stocks. Both growth and dividend investors alike should consider buying this stock.
Invest in this financial institution
Brookfield Asset Management (TSX:BAM.A)(NYSE: BAM) is the second stock that investors should buy today. This company operates a portfolio with more than US$750 billion of assets under management. That makes it one of the largest alternative asset management firms in the world. Through its subsidiaries, Brookfield has exposure to the infrastructure, insurance, real estate, renewable utility, and private equity markets.
Like Canadian National, Brookfield has managed to outpace the broader market over the past five years. Since September 8, 2017, Brookfield stock has gained 99.2%. That means the stock has more than tripled the returns of the broader market. This outstanding performance could be attributed to Brookfield’s extremely impressive growth rate. Over the past four years, its portfolio has grown at a compound annual growth rate of 26%. At that rate, Brookfield’s portfolio could be worth US$1 trillion in a couple years’ time.
A top Canadian tech stock
Finally, investors should buy Constellation Software (TSX: CSU) and plan on holding it forever. This company is an acquirer of vertical market software companies. Although that isn’t a very unique business, Constellation Software still manages to stand out among its peers. It does this by employing a very successful growth strategy. Constellation Software identifies great business, acquires them, and provides the necessary coaching and resources to transform those acquisitions into exceptional business units.
Over time, that strategy has help drive Constellation Software stock to new heights. Over the past five years, this stock has grown an astonishing 189.5%. That means Constellation Software stock has managed to produce six-fold the returns of the broader market over the past five years. Led by its founder and president, Mark Leonard, I believe Constellation Software could continue to grow at a rapid rate over the coming years.
