Got $3,000? 2 Tech Stocks to Buy and Hold for the Long Term

Tech stocks as a whole have a bad rap these days, yet these two have proven over the decades to be low-risk, high-reward options.

| More on:
Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization

Image source: Getty Images

I often like to recommend to investors starting out that they don’t put everything they have towards stocks. Even when it comes to their investment income. Instead, I recommend creating a budget, and based on your budget and income, you can usually put 5% to 10% aside per month.

Given that as of 2021, Statistics Canada says the average Canadian salary came in at about $60,000, that would mean putting aside about $3,000 per year. And in many cases, that’s $3,000 which continues to sit there, uninvested.

So today, I have a recommendation. While they’re down, I would say that tech stocks offer some solid long-term hold options. If you know where to look. And luckily for you, I do!

Open Text

If you’re going to find tech stocks to hold, they have to stand the test of time. One of those companies is Open Text (TSX:OTEX). The enterprise software company has been around for decades. It’s one of the tech stocks that also doesn’t depend on one source of revenue. Instead, it creates partnerships with some of the biggest brands out there, which should endure for years, if not decades.

Now, the company has moved from these major partnerships to supporting the work that it’s cut out for. This has meant rolling out new upgrades, as well as mergers and acquisitions. Open Text stock is now a strong company with a solid balance sheet, low risk tolerance score, and strong buy recommendation by analysts.

Shares of Open Text stock are down 12% in the last year, but again, we’re thinking long term. In that case, Open Text has climbed 951% in the last two decades! That’s a compound annual growth rate (CAGR) of 12.5% as of writing. So, this is certainly a strong contender if you’re looking for long-term tech stocks to hold.


Another solid, low-risk option is CGI (TSX:GIB.A). CGI stock has long been outperforming analyst estimates thanks to its strategy of buying, selling, and reinvigorating tech companies. It will pick them up on the cheap, only to turn them around and out in better shape than before. This coupled with its business consulting and IT solutions makes it a strong choice that will remain relevant for decades.

This was seen during its latest earnings report, with revenue up 11.6% to $3.5 billion year over year. Net earnings were up 4.1% as well, with diluted earnings per share (EPS) climbing by 7.4% compared to the year before. Yet, it still has a $25 billion backlog to look forward to!

Again, CGI stock has also been around for decades. In the last year, shares are up by 18.6%. However, in the last two decades, it’s up an insanely impressive 1,648%! That’s a CAGR of 15.4% during that time.

Bottom line

Not all tech stocks are risky. In fact, both of these tech stocks are low-risk options that continue to beat out analyst estimates. They’ve been around for decades, with a future outlook that proves they’ll be around for decades more. So long-term holders would certainly do well to consider them in their portfolio.

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 CGI. The Motley Fool has a disclosure policy.

More on Tech Stocks

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

3 Canadian Growth Stocks I’d Buy Under $30

These under $30 Canadian growth stocks are well-positioned to capitalize on mega trends such as e-commerce, the electrification of vehicles,…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Tech Stocks

Why This Tech Stock Just Jumped 18%

This tech stock just saw shares surge after announcing it was being acquired, but more growth could still be in…

Read more »

Group of people network together with connected devices
Tech Stocks

Prediction: My 2 Top TSX Stocks to Beat the Market in 2024 and Beyond

Looking for stocks set to beat the market in 2024 and well beyond? Here are two tech stocks set to…

Read more »

man touches brain to show a good idea
Dividend Stocks

3 No-Brainer TSX Stocks I’d Buy Right Now Without Hesitation

Three TSX stocks that continue to overcome massive headwinds and beat the market are no-brainer buys right now.

Read more »

young woman celebrating a victory while working with mobile phone in the office
Dividend Stocks

This Dividend Stock Just Jumped 10%! Time to Buy?

This dividend stock is way up after being included in a major index, making it a prime time to pick…

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

This is the Best AI Stock to Buy Right Now

Investors have a wide selection of AI stocks to choose from, although the best buy today is not the most…

Read more »

grow dividends
Tech Stocks

If This Fast-Rising Stock Isn’t Yet on Your Radar, it Should Be!

Here's why Constellation Software (TSX:CSU) remains a top TSX growth stock long-term investors ought to consider right now.

Read more »

cryptocurrency, crypto, blockcahin
Tech Stocks

1 Cryptocurrency Stock Soared 8% This Week, and it’s the Only 1 I’d Buy

Cryptocurrency stocks can be a dime a dozen, which is why this one stock stands out from the rest as…

Read more »