Investors are always thinking about the future, as they should. That future should also be thought of long term. You want long-term holds and long-term wealth. And that usually means long-term wealth for your children as well.
Today, we’re going to look at three TSX stocks that are perfect for those seeking generational wealth. You want your children and children’s children to be set up as well, if possible, right? So, let’s look at three stocks to get you there.
Railways remain one of the best ways to create generational wealth, as it’s practically impossible for any railway to move in on a company. How do you compete with railway lines, after all? The only way is to merge and acquire, which is exactly what Canadian Pacific Railway (TSX:CP) has been doing.
With an acquisition of Kansas City Southern underway, CP stock is the only railway running from Canada down to Mexico. It continues to create opportunities for long-term holders and has seen its returns explode over the last several years.
CP stock is not going any where. You can therefore pick it up today with 2,159% growth in returns in just the last 20 years, though it’s been around much longer. That’s a compound annual growth rate (CAGR) of 16.85%. Meanwhile, it offers a 0.73% dividend yield to consider.
Another company that’s been around for about 100 years and will remain so for another 100 years, is BCE (TSX:BCE). BCE stock continues to be the largest of the telecommunications companies and continues to focus on growth through providing the fastest connections out there.
Whether it’s phone lines, wirelines, wireless lines, or other types of lines we need to communicate, BCE stock seems to be the one to beat. It now has the fastest internet speeds in Canada and is in the process of rolling out 5G+. Yet even more infrastructure for wireless connection is needed. So, you can look forward to more growth from this Dividend Aristocrat in the future.
BCE stock now offers a dividend yield at 6.38% as of writing, and shares are up 500% for a CAGR of 9.38% as of writing over the last 20 years. And again, it’s been around longer and has many years ahead.
Brookfield Asset Management stock
Last but not least, Brookfield Asset Management (TSX:BAM) has been around since the late 1800s. In that time, it’s expanded with offshoots of the main business continuing to support its growth. It’s now one of the perfect investments for those seeking steady growth and income.
This is because BAM stock invests in every type of real estate property imaginable. Whether it’s renewable energy, hotels, even student housing, it has a foot in the door. This diverse set of income, therefore, is perfect for those seeking steady long-term wealth.
BAM stock now holds a 3.79% dividend yield for investors to consider as well. Shares were up 279% before the stock changed last year and has climbed a further 5% since then. So, it’s definitely another to consider, with now a great time to buy.