Got $5,000? Buy These 2 Stocks and Hold Until Retirement

The right buy-and-hold stocks can become powerful additions to your retirement portfolio, assuming you hold them for long enough.

| More on:
Happy Retirement” on a road

Image source: Getty Images

Our calculations, when it comes to saving and retirement planning, vary greatly based on our lifestyle and income. For some, $5,000 may be their bimonthly savings, while others may save that amount in an entire year.

But regardless of what proportion of your available capital this amount represents, one of the best ways to grow it would be to buy the right stocks and hold on to them as long as possible, ideally till retirement.

A tech stock

CGI (TSX:GIB.A) is a business and IT consulting company that has been around since 1976. It’s among the largest companies in this domain, with 400 locations worldwide, and controls a network of over 90,000 consultants and professionals. It caters to various industries and has a decent service portfolio, including managed IT and infrastructure services.

This business model sets it apart from other tech companies that are vulnerable to radical advances in competitive domains. The company helps other businesses adopt new tech tools and manage their IT services better, and it’s likely to remain relevant for decades in the future. This stability has been one of the main factors behind the company’s success and its stock’s powerful growth over the last 15 years.

The stock has risen over 384% in the last decade, and if it continues to grow at this pace, you may grow your $2,500 in the capital (half of the available capital) to a decently sized nest egg in three or four decades.

The stock also stands out for its resilience against market or sector-wide slumps. During the correction of the tech sector, the stock barely dipped and is already trading at a 14.7% premium to its pre-pandemic peak. This, along with its business model, endorses its candidacy as a long-term holding.

A railway stock

Railways like Canadian National Railway (TSX:CNR) have been an important part of human civilization in the past two centuries. Even now, when much faster and more flexible transportation alternatives are available, railways play a crucial role in a country’s supply chain and heavy cargo hauling.

Canadian National Railway doesn’t just serve the local supply chain but also connects Canadian people and businesses to the U.S. as well.

The Canadian National Railway is among Canada’s most coveted blue-chip stocks for reasons beyond its economic importance and leadership position. It’s a powerful growth stock and a well-established Dividend Aristocrat, rewarding its investors on both fronts.

The company has grown its payouts for 27 consecutive years, making it a dependable Dividend Aristocrat, and it’s currently offering a yield of about 1.98%.

As for growth, the stock has risen by about 225% in the last 10 years. If you add dividends to the returns, the number jumps significantly higher (285%). You can boost your long-term growth potential with this stock by opting for the DRIP.

Foolish takeaway

The two stocks are among some of the best options you have on the TSX to park your $5,000 capital and hold it for decades. Both are leaders in their respective industries and have proved their resilience against weak markets, market crashes, and even recessions.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends CGI and Canadian National Railway. The Motley Fool has a disclosure policy.

More on Investing

Nickel ore is mined from the ground.
Investing

Cameco vs. Barrick Gold: 2 Undervalued Mining Stocks Set to Unearth Gains

Cameco (TSX:CCO) and Barrick Gold (TSX:ABX) are top mining stocks that look to be on sale right here!

Read more »

stock research, analyze data
Investing

Could Dollarama Stock Reach $150?

After gaining over 44% in the last 12 months, can Dollarama stock keep up this exceptional growth rate and climb…

Read more »

TIMER SAYING TIME FOR ACTION
Tech Stocks

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

Shopify stock fell 25% after reporting disappointing guidance. Should investors buy the dip and hold the stock for the long…

Read more »

grow dividends
Dividend Stocks

3 Canadian Stocks With a Real Chance of Doubling Your TFSA’s Value

Three outperforming Canadian stocks can help TFSA investors double their account balances.

Read more »

Hand writing Time for Action concept with red marker on transparent wipe board.
Dividend Stocks

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

At any given time, the market may have certain stocks that offer a powerful combination of reliability, potential, valuation, etc.,…

Read more »

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 »

Gas pipelines
Stocks for Beginners

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

Enbridge (TSX:ENB) is a superb long-term option. Here's why you should buy Enbridge stock right now and hold it for…

Read more »

money cash dividends
Dividend Stocks

This 8.39% Dividend Stock Can Pay $100 Cash Every Month

Consider investing in this monthly dividend stock at current levels to lock in high-yielding monthly distributions to create a good…

Read more »