Canadian investors looking for a strong TSX stock to buy for life have their pick of the litter right now. Everything is down, with the TSX down 12.3% year to date. But this opportunity isn’t going to last forever. Investors who have some cash they’re looking to invest then should seize this opportunity.
And today, if there’s one opportunity I would grab before it’s gone, it’s BCE (TSX:BCE).
A strong history of growth
BCE stock is a strong choice, as the TSX stock has grown for over a century. Shares are up 495% in the last two decades. This alone goes to show that if you’re holding long term, then even with a large downturn like the one we’re going through today, it won’t affect long-term investors.
In that time, and the decades before, BCE stock has taken the top spot of the telecommunications companies. It currently boasts the largest market share, with a market capitalization of $54.21 billion. It now remains a top choice, as the company can claim the fastest speeds of the telecommunication companies.
Current growth
BCE stock is now a top TSX stock thanks to pushing out its fibre-to-the-home network and 5G rollout as quickly as possible. This became a huge win during the pandemic, when working from home became a necessity, and Canadians needed faster internet speeds.
During its last earnings report, the TSX stock was able to reaffirm its targets and expects more growth. All during an economic downturn that should see it hurt far more than it has.
Adjusted earnings before interest, taxes, depreciation and amortization rose 4.6% year over year, with service revenue paving the way as it increased 3.8%. Media revenue was up 8.7%, but digital revenue up a whopping 55% year over year as well.
And even though it’s already rolled out 5G, it’s now looking to roll out 5G+. Investors should hear more about this when earnings are released on Nov. 3, 2022.
A future growth combination
So, we have a strong history of growth, current stable growth, and long-term growth locked in thanks to its growing 5G network and fibre to the home. This creates a strong choice for any investor looking for a TSX stock.
But the best part? It’s a steal. BCE stock trades at 18.93 times earnings, which isn’t cheap but is reasonable. However, shares are down 5.6% year to date, offering a great time to jump in. Further, you can lock in an astounding 6.34% dividend yield as of writing!
The dividend alone has grown by a compound annual growth rate (CAGR) of 5.76% over the last two decades. Meanwhile, shares are up by a CAGR of 9.34% in that time. Taken together, you could make astounding income in the next two decades.
How much? If you were to invest $10,000 and leave it alone, reinvesting only dividends for the next 20 years, that portfolio could turn into $142,084!
Bottom line
BCE stock is a safe TSX stock any investor can consider. It holds a top spot in telecommunications, has further growth on the way, and a long history of solid and stable growth to consider. Plus, you can bring in solid passive income from the dividend stock. Income that can be reinvested to make even more cash. And with shares down 5.6% right now, you could see a nice jolt to pre-drop prices in the next year.
