Got $5,000? 3 TSX Stocks You Can Confidently Own for the Next 20 Years

If you’ve got a long-term time horizon, these three TSX stocks should be at the top of your watch list.

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There’s been no shortage of volatility and uncertainty over the past year in the stock market. Perhaps that shouldn’t come as a surprise, considering how high both interest rates and inflation remain today. Couple that with a potential recession continuing to loom around the corner, and I’d caution investors to brace their portfolios with more expected volatility in 2023.

Fortunately, at least for long-term investors, the uncertainty in the economy today shouldn’t be a significant concern. In fact, the market’s selloff last year created loads of buying opportunities for long-term investors. As long as you’re willing to endure more short-term pain for long-term gains, now would be an opportunistic time to put your money to work in the stock market.

I’ve put together a list of three top TSX stocks that you can feel good about buying, regardless of the condition of the economy. If you’re willing to patiently hold through more volatility in the future, these three companies should be on your watch list today. 

TSX stock #1: Constellation Software

In a year where many tech stocks plummeted, Constellation Software (TSX:CSU) held up impressively well. Shares of the tech company were just about on par with the S&P/TSX Composite Index’s return in 2022. 

Year to date, Constellation Software continues to match the market’s return. The tech stock is also nearing a market-crushing 150% return over the past five years.

Now valued at a market cap of just below $50 billion, Constellation Software is past its high-flying multi-bagger years. But with a continued focus on growth through acquisitions, I wouldn’t bet on the tech stock to begin trailing the market’s returns anytime soon. 

TSX stock #2: Northland Power

Speaking of areas of the stock market that plummeted in 2022, you can include renewable energy in that conversation, too. In fact, the sector has been on a slide dating back to early 2021, making now an excellent time for long-term investors to be buying clean energy stocks. 

There are a few reasons that make Northland Power (TSX:NPI) a strong buy today. First, the company has a well-established presence in the growing renewable energy space. It’s got a customer base that spans across the globe as well as a wide-ranging portfolio of assets.

In addition, Northland Power is no stranger to outperforming the market. Shares are up close to 50% over the past five years, easily outpacing the returns of the Canadian stock market. And that’s not even including the company’s impressive 3% dividend yield, either.

TSX stock #3: Toronto-Dominion Bank

With more volatility likely on the horizon, owning shares of a few trustworthy stocks like Toronto-Dominion Bank (TSX:TD) would be a wise idea. 

The banking sector won’t be lighting the world on fire with growth anytime soon, but it sure is a dependable place to be invested. In addition to dependability, the Big Five own some of the top dividends you can find on the TSX today.

At today’s stock price, TD Bank’s annual dividend of $3.84 yields just about 4.5%.

If the volatility over the past couple of years has been too much for your liking, I’d strongly recommend loading up on a few dependable companies, like this one.

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 Nicholas Dobroruka has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

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