3 Stocks That Lazy Investors Can Buy and Hold for a Decade or More

Are you looking for stocks that you can buy and let run for a decade or more? Here are three top picks!

| More on:
Simple life style relaxation with Asian working business woman healthy lifestyle take it easy resting in comfort hotel or home living room having free time with peace of mind and self health balance

Image source: Getty Images

When building a portfolio, it’s important to hold anywhere from 15 to 20 stocks. A portfolio of that size could help investors maintain a portfolio that is less volatile than one that focuses on a smaller number of companies. However, holding that many companies can make it difficult to track and keep tabs on each one. A solution to that issue would be to find companies that are consistent and reliable enough, such that investors can essentially buy shares and not have to worry about them.

In this article, I’ll discuss three stocks that lazier investors can buy and hold for a decade or more. All three of these companies are blue chip in nature, which should help ease the minds of investors.

Buy one of the Canadian banks

In my opinion, the Canadian banks are among the easiest companies to buy for lazy investors. This is because the Canadian banking industry features some of the largest and most important companies in the country. Looking at the nine largest Canadian companies (by market cap), we can see that four of them are banks. Of that group, Bank of Nova Scotia (TSX:BNS) is my top pick.

What interests me about Bank of Nova Scotia is its strong geographic diversification. This could help the company keep its business running smoothly should its North American operations encounter a prolonged period of economic uncertainty. In addition, Bank of Nova Scotia is a very strong dividend stock. It has paid investors a portion of its earnings in each of the past 189 years.

Utility companies can be a reliable pick

Investors should also consider turning to utility companies. These sorts of companies can be interesting from a “set-it-and-forget-it” point of view, because their revenues tend to be very consistent. This is because utility companies rely on recurring payment business models. This gives utility companies a very predictable source of revenue, which could help with business planning in the future.

Fortis (TSX:FTS) is an example of a company that takes good advantage of this recurring payment model. This company uses that steady source of revenue to provide shareholders with a reliable dividend. In fact, Fortis is known for holding the second-longest active dividend-growth streak in Canada (49 years). The company projects that it’ll be able to continue raising its dividend at a compound annual growth rate of 6% through to at least 2025.

Here’s an international stock to diversify your portfolio

Although there are a lot of strong companies listed on the TSX, it would be a good idea for Canadians to diversify their portfolios outside the country. Like I stated in Bank of Nova Scotia’s section, geographic diversification could help maintain a business (or your portfolio) should a certain region be hit by unfortunate economic conditions. One strong international company that Canadians should consider is Microsoft (NASDAQ:MSFT).

Founded nearly 50 years ago, Microsoft still holds the top spot when it comes to desktop operating systems. It’s estimated that 76% of desktops around the world rely on its Windows platform. This dominance, in addition to its suite of additional products and services (e.g., Xbox, Office, Azure), should allow Microsoft to continue operating very smoothly over the next decade and beyond.

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 Jed Lloren has positions in BANK OF NOVA SCOTIA and Microsoft. The Motley Fool recommends BANK OF NOVA SCOTIA, FORTIS INC, and Microsoft. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

retirees and finances
Dividend Stocks

How to Create a Million-Dollar TFSA in Two Decades

Your TFSA could create riches you didn't know were possible, but only if you commit again and again to your…

Read more »

Coworkers standing near a wall
Stocks for Beginners

2 Unassailable Earnings Growth Stocks for a Wobbly Economy

Aritzia and another top growth stock that could be hot performers through 2023 and beyond.

Read more »

Chalk outline of two arrows pointing in opposite directions
Stocks for Beginners

2023 Is a Terrible Time to Be a Saver: Here’s What to Do With Your Money Instead

You can hold short-term GICs for your liquidity needs but also consider investing your money in quality businesses for the…

Read more »

edit Sale sign, value, discount
Stocks for Beginners

3 Cheap Stocks I’d Buy in Bulk When a Recession Hits

Not only would I grab these cheap stocks during a recession, I would then hold them for the next decade…

Read more »

Female hand holding piggy bank. Save money and financial investment
Stocks for Beginners

Millennials: How to Take Full Advantage of That “RRSP” Thing

I get it; it's hard to invest for the future when the present is stressful, but there are present benefits…

Read more »

Man with no money. Businessman holding empty wallet
Stocks for Beginners

Canadians Investors: How to Know When We’ve Hit a Recession

A recession is coming in 2023, but what does that even mean? And how can investors protect themselves before it…

Read more »

man slides
Dividend Stocks

TFSA Investors: Where to Put That New $6,500 Contribution Room

These stocks may be trading high, but they still offer value for TFSA investors seeking out the best stocks to…

Read more »

A bull and bear face off.
Stocks for Beginners

3 Cheap Stocks I’d Buy Before the 2023 Bull Market Arrives

Investors seeking out value should consider these cheap stocks, which could be some of the best stocks to buy before…

Read more »