No stock, no matter how strong a business it represents, is entirely infallible. Looking at the last few decades, you can find examples of stocks from virtually every sector that failed to deliver long term. Still, it’s possible to find stocks you can virtually hold forever. The best bet for most investors is to choose from blue-chip stocks that represent established businesses with time-tested histories.
And even though a lot of blue chips come with a hefty price tag (three digits or more), there are plenty of options below that mark as well.
An infrastructure company
Brookfield Infrastructure Partners (TSX: BIP.UN) is a promising investment, part of Brookfield Asset Management, although it’s a separate publicly traded company. It owns a wide variety of infrastructure assets around the globe, more than half of which are outside North America, making its holdings quite well diversified.
These assets include gas pipelines, electricity transmission, and distribution assets, rail operations, gas storage facilities, and 50 data centres. The diversification of assets is on par with the geographical distribution.
But it’s not just the underlying business that’s solid. The stock’s performance has been quite impressive as well. In the last decade, the stock has returned over 200% to its investors through price appreciation alone, and total returns (including dividends) have been 384% for the period. The current yield is 4.4%, and it’s the result of the stock’s 24% fall. It’s currently trading at $42.6 per share right now.
A consumer staples company
Metro (TSX: MRU) is a food and medicine giant in Canada with massive chains of grocery stores and pharmacies. Metro reaches out to a significant portion of the population, especially in Quebec and Ontario. There are seven different brands under the food/grocery business and five under the pharmacy business.
This business model alone makes it a stock worth holding forever since grocery stores and pharmacies are virtually always in business, no matter the economic conditions. That, and its impressive presence in the country, makes it a relatively safe bet, mainly if the company develops a robust online front to take advantage of the e-commerce space.
The stock’s performance has been quite excellent, at least since Feb. 2012. It has risen, almost consistently, by 329% since then. And if it keeps growing at this pace, it may easily offer 300% growth in the next decade as well.
It’s trading at $76.5 per share right now and offers dividends at a 1.44% yield.
Foolish takeaway
The two large-cap stocks offer stability, decent growth potential, and relatively safe dividends. They have proven their mettle during at least one major financial crisis (COVID) and are engaged in evergreen businesses. These are all the hallmarks of businesses you can hold forever in your portfolio.
