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.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCY
CU$36.8168$1.78$121.04annually

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.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCY
BIP.UN$44.7056$1.95$109.20annually

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

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

How to Use a TFSA to Earn $250 per Month in Tax-Free Passive Income

Looking for long-term growth in your TFSA? Here is exactly how to create the perfect passive income portfolio, and where…

Read more »

Technology, internet and networking, security concept
Tech Stocks

Down 45%, Is BlackBerry Stock Fairly Valued?

BlackBerry stock (TSX:BB) looks like it could be a good buy at these share prices, but it still has a…

Read more »

Happy shoppers look at a cellphone.
Stocks for Beginners

Why Is Aritzia Stock Up 22% After Earnings?

Aritzia stock (TSX:ATZ) surged in share price after its last earnings, so is it still a good buy? Or should…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

1 TSX Stock That Could Help Set You Up for Life

Early investors in Intact Financial (TSX:IFC) stock could earn a 17% dividend yield in 2024. Here's how IFC stock could…

Read more »

Target. Stand out from the crowd
Stocks for Beginners

5 Stocks You Can Confidently Invest $500 in Right Now

Whether it's stocks making a comeback or proven investments over decades, these five belong in your portfolio.

Read more »

alcohol
Stocks for Beginners

I’d Aim for $1 Million Buying Just These 3 TSX Stocks

These three TSX stocks have a long history of making millionaires, but don't count them out. Long-term investors have more…

Read more »

Dice engraved with the words buy and sell
Stocks for Beginners

TD Bank Stock: Buy, Sell, or Hold?

TD bank (TSX:TD) continues to face issues regarding its anti-money laundering issues, but has made a great start.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Stocks for Beginners

5 Canadian Stocks to Buy and Hold Forever in Your TFSA

Are you looking for some Canadian stocks for a long-term investment? These evergreen stocks can help you generate wealth and…

Read more »