The TSX today continues to drop as companies post layoffs, report poor earnings, and prepare for a recession likely to hit any day now. But as Motley Fool investors should know by now, it’s the journey that will help you reach your goals. And that means finding the best stocks to buy for the long term.
Now let me be clear, a long-term investment doesn’t mean you have to invest for something like 10 or 20 years. No, a long-term investment could be around five years! But in the same token, short-term should be two-to-three years. So if you’re hoping for a company that’s going to suddenly soar in the next year, that’s active trading. And it’s a dangerous game.
That’s why today, investors looking for the best stocks to buy for the long run may only have $1,000 to spare. They may need the rest sooner than five years, so will have to put it somewhere else. But that $1,000 can do a lot for investors if you put it in the right place.
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CAPREIT
A huge opportunity for investors in the next several years will be the rental sector. Rents are already skyrocketing, as the housing crisis continues in Canada. Now, Canadians are starting to demand more low-income housing, as well as options replacing high rises with other rental units such as townhomes.
Because of this, there is a large opportunity for companies like Canadian Apartment Properties REIT (TSX: CAR.UN). Shares are down 9% in the last year, yet still up 918% in the last two decades! That’s a compound annual growth rate (CAGR) of 12.3% as of writing, which could certainly continue in the near and distant future.
Investors can therefore bring in a 3% dividend yield while it trades at just 0.84 times book value. That dividend has risen at a CAGR of 2.7% in the last decade. Plus, it would take just 70.7% of its equity to cover all debts, even with shares currently down. So, here’s what a $1,000 investment could get you on the TSX today from one of the best stocks to buy now.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
| CAR.UN | $48.06 | 21 | $1.45 | $30.45 | monthly | $1,000 |
Brookfield Renewable Partners
Another one of the best stocks to buy has to be Brookfield Renewable Partners LP (TSX: BEP.UN). It’s perfect for the investor wanting to get into clean energy, but not sure what’s going to become the go-to asset. Which is why Brookfield invests in pretty much everything!
Whether it’s nuclear, solar, wind, or hydro power, Brookfield has a foot in each of these avenues. And the company continues to sign on long-term contracts, comprising 94% of its revenue. Yet on the TSX today, it trades at just 1.8 times book value, with shares down about 23% since August 2022 highs.
Yet over time, Brookfield stock is up 1,443% in the last 20 years for a CAGR of 14.7% as of writing. Further, its dividend of 4.5% has risen by a CAGR of 9% in the last decade alone. So, if you were to pick it up today for $1,000, here’s what you could get.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
| BEP.UN | $39.22 | 25 | $1.74 | $43.50 | quarterly | $1,000 |
Bottom line
If you only have $1,000, that doesn’t mean you should be looking for the cheapest stocks out there. Instead, you want long-lasting companies that will be here in the next few decades. And when it comes to these two, they’re the best stocks to buy on the TSX today for those seeking stellar returns, along with strong dividends.
