I talk a lot about long-term investing being one of the best ways to create long-term growth. And no, I’m not going to suddenly change my mind. I still hold this opinion true. However, I don’t necessarily think that investing long-term means you must choose an older company.
There are certainly strong TSX stocks out there to consider, so don’t ignore them. But also don’t ignore the younger ones that have so much promise. Today, I’m going to cover two that may have gone under your radar, or you’ve ignored long enough.
NorthWest REIT
This is one I talk about a lot, and for good reason. NorthWest Healthcare Properties REIT (TSX:NWH.UN) is a real estate investment trust (REIT) that focuses in on the healthcare industry. It invests in every type of healthcare property out there, and anything even remotely related. You need a parking garage next to a hospital? It’ll invest in that. How about a small doctor’s office? Yep, that too. And that large hospital down the road? Oh yes, that’s an investment as well.
This diversification within the stable healthcare industry is strong in its own right. However, NorthWest stock has made a massive effort to expand on a global scale. It now has assets in Netherlands, Australia, Canada, and recently the United States.
Because of this, you get an even more diverse revenue stream from this stable industry of TSX stocks. So while NorthWest stock hasn’t increased its dividend of $0.80 annually yet, I’d wager you’ll see that climb quickly in the next several years.
Yet, shares of NorthWest stock are down 38% in the last year, and trade at just 7.7 times earnings as of writing. So you can bring in a major yield of 8.91% by investing today.
Nutrien
Another stable industry to consider? The agriculture sector. And above them all, Nutrien (TSX:NTR) might prove to be the most promising. Yet, it was already a strong stock before it saw a major jump from the invasion of Ukraine by Russia leading to sanctions against Russian fertilizer. And just as strong of a drop a few months later as well.
The facts remain the same. Nutrien stock has brought this industry into the 21st century. It continues to acquire business after business in this fractured industry. It has online offerings that allowed farmers to continue to feed cities even during the pandemic. And it hasn’t slowed down in any way.
So while shares are down 25% in the last year, I would consider this a steal. It trades at just 5.1 times earnings as of writing, and provides a dividend yield at 2.84% as well.
So don’t listen to headlines when you’re choosing a stock. Look at the long-term prospects and projections of these companies and others. We need food. And we’re going to need more fertilizer to produce that food for a growing population that’s surpassed eight billion. Nutrien stock will therefore be one of the best TSX stocks to hold for that long-term growth, and you’ll be rewarded by buying today.
