4 Reliable Stocks to Buy and Hold for a Lifetime of Strong Returns

Do you want a passive way to invest? Be like Warren Buffett and just buy and hold these quality stocks for the long run.

| More on:

Image source: Getty Images.

One of the most reliable ways to invest is to buy high-quality stocks and then hold them for years. This can be a challenge, especially when you can buy and trade stocks at the click of a button.

Yet some of the greatest investors (like Warren Buffett) have built their fortune by buying great businesses and holding them for decades. If you don’t mind a completely passive way to invest (i.e., buy and do nothing), here are four great Canadian stocks to consider holding for a lifetime.

Fortis: Decades of consistency

There is nothing flashy about Fortis (TSX:FTS) stock. It’s in the business of building and operating electric and natural gas infrastructure to consumers and businesses. This is not an exciting business, but it is completely essential to society.

As a result, Fortis collects a regulated baseline of earnings that is very predictable. Fortis is so predicable that it has been able to increase its dividend for 49 years straight. Today, you can buy it at $55 with an attractive 4.12% dividend yield.

As society expands, there will be more demand for energy and electricity. That means further opportunities to keep growing its portfolio and delivering consistently bigger dividends.

TD Bank: A reliable bank stock

Toronto-Dominion Bank (TSX:TD) is a similar type of business. Over the past 10 years, it has grown its earnings per share by a compounded annual growth rate of 10%. Interestingly, it has also delivered total annual returns that are in step with its earnings growth (10% a year including dividends).

TD has built an incredible retail banking empire across Canada. It has also become a substantial player in the United States. While this is an economically sensitive business, TD has one of the best capital ratios in North America.

TD has paid a dividend for over 100 years. It has grown its dividend almost every year since its initial public offering (IPO) in 1995. While this may not be a “high” growth stock, consistent long-term returns still remain likely.

Alimentation Couche-Tard: A great capital allocator

If you are looking for a little more torque to the upside, Alimentation Couche-Tard (TSX:ATD) is an excellent long-term stock. This stock has earned patient shareholders a 671% total return (22.7% annualized) over the past 10 years.

It has grown by consolidating a very fragmented market of gas stations and convenience stores. The company is very thoughtful about earning high returns on the investments it makes. Not only has it been growing earnings by a mid-teens rate, but it has also aggressively been buying back stock.

This stock is not overly expensive given its great track record. It won’t be cheap forever, so now is a great time to add it for the long haul.

Colliers stock: A long-term track record

Colliers International Group (TSX:CIGI) is a long-term stock you don’t want to miss. Colliers is known as a commercial real estate brokerage business around the world. However, over the past 10 years, it has drastically expanded its offerings into property management, lending, engineering/design, project management, and asset management.

Colliers has returned 718% (23.4% annualized) to its long-term shareholders over the past 10 years. Despite this track record, you can buy this stock for only 14 times forward earnings and 11.5 times free cash flow.

Its management team is heavily invested in the stock, so their incentive to build long-term wealth is the same as yours. You might need to be patient, but this stock could keep delivering attractive long-term returns.

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 Robin Brown has positions in Colliers International Group. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Colliers International Group and Fortis. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

healthcare pharma
Stocks for Beginners

2 Healthcare Stocks You Can Buy and Hold for the Next Decade

These two healthcare stocks are showing strong signs of growth for the next decade and are already improving by leaps…

Read more »

question marks written reminders tickets
Stocks for Beginners

Better Buy: Bombardier Stock or CAE?

Both Bombardier (TSX:BBD.B) stock and CAE (TSX:CAE) stock have their upsides and downsides, but which is the better buy today?

Read more »

Airport and plane
Stocks for Beginners

If You’d Invested $1,000 in Air Canada Stock in 2014, This Is How Much You Would Have Today

Not everyone has seen their shares of Air Canada (TSX:AC) stock decline. But if you were to invest today, would…

Read more »

growing plant shoots on stacked coins
Dividend Stocks

4 Ways to Grow $100,000 Into $1 Million in Retirement Savings

Anyone can build a million-dollar retirement portfolio. Here are four ways you could practically grow $100,000 to $1 million.

Read more »

A shopper makes purchases from an online store.
Dividend Stocks

3 Reasons to Buy TFI Stock Like There’s No Tomorrow

TFI stock (TSX:TFII) had a hard 2023, but now it's set up for a solid 2024, with an acquisition that…

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Dividend Stocks

5 Secrets of TFSA Millionaires

These lesser-known secrets can help you set up the perfect long-term portfolio and achieve a million-dollar TFSA!

Read more »

Target. Stand out from the crowd
Stocks for Beginners

3 Glorious Stocks That Are Screaming Buys in March

Investors looking for the next big growth opportunity should consider these undervalued stocks ahead of the next month.

Read more »

question marks written reminders tickets
Stocks for Beginners

Where Will Aritzia Stock Be in 3 Years?

Aritzia (TSX:ATZ) stock may have come down from all-time highs, but a new CEO and renewed U.S. focus makes it…

Read more »