Got $2,500? 2 Top Stocks That You Can Buy and Hold for a Lifetime

Don’t seek out excitement, instead find these top stocks and hold them for decades of stellar income. That’s a truly exciting prospect.

| More on:
Senior Couple Walking With Pet Bulldog In Countryside

Image source: Getty Images.

It can be exciting to find those growth stocks everyone ends up talking about. Ones that you watch soar in your portfolio, giving you a rush every evening when you check their performance for the day. But just as easily as these can provide excitement, in general, we tend to see these growth stocks fall as well. Which is why top stocks tend to be the way to go.

Top stocks include ones such as blue-chip companies, those that provide dividends, value, and long-term options for investors who don’t want to live on the edge of their computer chair, watching the market. So today, if you have $2,500 you want to invest safely, these are the two top stocks I would consider buying now and holding for a lifetime.

Canadian Utilities

Canadian Utilities (TSX:CU) is a no-brainer for investors seeking long-term growth. It may not be the company with the most amount of growth on the market, but neither is it the one with the biggest losses. Canadian Utilities stock is also one of the longest-serving stocks on the TSX today. So if you’re going to park $2,500 anywhere, this is certainly one to consider.

Now, I could also offer you up other energy companies here, too. However, oil and gas stocks are likely to go the way of the dodo bird in the years to come. Because of this, I would stick to utility stocks such as Canadian Utilities stock for long-term returns.

Utility companies provide safe and secure returns through long-term contracts, using their revenue for dividends as well as growth through acquisitions. Canadian Utilities stock is also the only stock on the TSX today that holds Dividend King status.

What’s more, utility stocks rose and fell in 2022. Because of that, the company is near value territory, trading at 16.7 times earnings as of writing. You can, therefore, lock up a 4.85% dividend yield right now and look forward to perhaps another 50 years of dividend increases. Right now, shares are up 495% in the last 20 years for a compound annual growth rate (CAGR) of 9.3%. Meanwhile, its dividend has increased at an 8.1% CAGR in the last decade.

Here’s what you would get today with a $2,500 investment.


Brookfield Infrastructure

The other of the top stocks I would consider buying and holding for a lifetime is Brookfield Infrastructure Partners LP (TSX:BIP.UN), and for many of the same reasons as Canadian Utilities stock. It provides investors with access to the security of infrastructure. This literally builds up our daily life. Whether it’s having a shower or driving to work, infrastructure makes that possible.

With Brookfield, you therefore not only get access to several types of infrastructure assets, but to assets located around the world. And this includes utility companies, energy companies, even renewable assets. Yet, it also includes water, construction assets, and more. No matter what the future holds, it’s a solid choice to choose a defensive stock like this one for a long-term hold.

Yet again, it provides investors with a solid dividend yield at 4.47% as of writing, though perhaps not a deal at this stage. It currently trades at 147 times earnings, making it quite expensive in terms of earnings compared to the share price. Even so, long-term investors shouldn’t be concerned, especially as they can buy it with shares down 23% from 52-week highs. Even so, Brookfield stock is up 273% in the last decade, a 17% CAGR, and an 8.77% dividend CAGR in that time.

So here’s what you would get with that $2,500 investment today.


Bottom line

The clear point here is that if you’re investing in long-term holds, you want companies that are going to be here over the next few decades. Both Brookfield stock and Canadian Utilities stock have proven time and again they can continue to deliver dividends, while also providing solid returns. So they’re definitely two top stocks I’d consider for a lifetime.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

Woman has an idea
Stocks for Beginners

Just Starting to Invest? 3 Smart Stocks to Buy in February 2023

If you're looking for smart beginner stocks to buy, you could look into asset management companies like Brookfield Asset Management…

Read more »

stock analysis
Stocks for Beginners

The Biggest Market Movers on the TSX in January 2023

Here are the top Canadian stocks that drove the main TSX index up over 7% in January 2023.

Read more »

calculate and analyze stock
Stocks for Beginners

The Top 3 Most Shorted Stocks in Canada Today

These TSX stocks may be up now, but short-sellers are betting they're about to tumble in the next few weeks.

Read more »

Growth from coins
Stocks for Beginners

Got $5,000? These 2 Growth Stocks Are Smart Buys

Are you looking for some smart buys for your portfolio? Here are two great options to buy now while you…

Read more »

Young woman sat at laptop by a window
Stocks for Beginners

3 Stocks Beginners Can Buy in 2023 and Hold for Decades

Are you looking for a simple portfolio to get started as an investor? These three stocks are top performers and…

Read more »

Dividend Stocks

Slow and Steady: Buy this Railroad Stock Now to Win the Race

Investors looking for a solid and growing income should pick up shares in this railroad.

Read more »

A brown bear sitting on a rock
Stocks for Beginners

Where to Invest $10,000 in a Bearish Market

Here are some great options for low-risk and high-risk investors alike.

Read more »

retirees and finances
Dividend Stocks

RRSP Investors: Should You be Worried During a Recession?

RRSP savers might feel like gagging as they watch their investments fall, but stay strong! Especially with these TSX stocks.

Read more »