3 Stocks to Buy and Never Sell

The stocks that can keep your capital safe (ideally growing) for decades while also producing an income for you are the ones you never have to sell.

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In any market, only a handful of companies/stocks may be held for life. These are usually blue-chip companies that can keep on delivering decent returns to their investors and are resilient enough to survive market crashes and recessions. They typically have powerful competitive advantages and a strong position in their respective industry, guaranteeing a steady business.

And these are just some of the factors you look into for stocks you can virtually hold forever, many of which may reflect your individual investment preferences. When you apply all these criteria, you might only find a limited number of stocks that fit the bill. There are three stocks that most investors might find adequate as their “forever” holdings.

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A banking leader

Royal Bank of Canada (TSX: RY)(NYSE: RY) offers a healthy mix of capital appreciation, dividends, and stability. As the most prominent Canadian bank, one of the largest North American banks, and the largest company in the country by market cap (most of the time), its stability is rarely in question.

An additional layer of safety is the conservative banking practices in Canada that prevent institutions like Royal Bank of Canada from making the same mistakes U.S. banks made during the Great Recession.

This banking stock‘s return potential is among the best in the entire sector. The 10-year compound annual growth rate (CAGR) is 12.6%, which is both sustainable and decent enough for the long term. Even if you don’t cash in the gains you get from capital appreciation, the 4% yield is enough to generate a sizeable income for you.

A telecom giant

Telus (TSX: T)(NYSE: TU) offers the best 10-year CAGR of the three telecom giants in Canada. Its combination of capital appreciation and dividends is quite formidable, so, on the one hand, your capital invested in the company will keep growing at a decent, and you will be simultaneously generating an income from its dividends.

The current yield of 4.7% is powerful enough, but you can lock in an even higher one if you wait for a dip.

Telus dominates the Western Canadian market, and the only major competition it’s facing right now is the potential merger of Rogers and Shaw. But even if the merger goes through, Telus still has growth opportunities in the 5G domain. It also has a diversified range of secondary businesses like home security and virtual health that may offer new avenues for organic growth.

A utility company

Algonquin Power & Utilities (TSX: AQN)(NYSE: AQN) covers the full spectrum of electricity utilities. From power generation to distribution, Algonquin does it all. And its utility portfolio doesn’t end at electricity, as the company has over 373,000 natural gas and about 413,000 water and wastewater customers.

Another positive feature of Algonquin is its focus on renewables. Its existing and under-construction renewable-based power-generation capacity is over four gigawatts, including solar and wind farms. This also makes it a good pick from an ESG (environmental, social, and governance) investing standpoint.

While it’s a safe long-term bet as a utility and renewable power-generation company, its return potential is nothing to scoff at. The stock has risen over 170% in the last decade and currently offers a 4% yield.

Foolish takeaway

The three stocks can be held in your registered accounts virtually forever. If you are not interested in generating an income from them right now, you can choose the DRIP, so when you do start taking cash dividends, your stake in the companies will have grown quite significantly. This will also result in higher dividend income.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends TELUS CORPORATION.

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