It takes time for companies to successfully implement their strategies and scale their business to greater heights. Thus, it is always fruitful for investors to purchase stocks with strong growth potential and hold for the long term. Most experts have asserted that time in the market beats timing the market. Accordingly, the search for top stocks to buy and hold is a noble one.
In this market, there are plenty of options to choose from. Here are three of my top TSX ideas for investors thinking about allocating capital to equities right now.
Top stocks to buy and hold: Fortis
Fortis (TSX:FTS) is a global provider of gas and electric utilities. Over the past five years, Fortis stock has appreciated nearly 40%, on a cumulative basis. Over this period, the company has also delivered substantial dividend growth, alongside earnings per share, which have grown at a compounded annual rate of 3.5% over this time frame.
These financial results paint the picture for long-term investors. Fortis is a dividend-growth stock that has provided robust total returns to investors for decades. Those looking to create a passive-income stream in a company that’s raised its distributions for nearly five decades need not look further. Currently, FTS stock yields 3.8% and trades around 21 times earnings.
Restaurant Brands (TSX:QSR) mainly operates through four segments: Burger King, Popeyes Louisiana Kitchen, Firehouse Subs, and Tim Hortons. It is an international fast-food holding company with significant market share in its primary markets: Canada and the United States. This is a stock that’s also seen substantial growth over the past five years, surging around 30% over this time frame.
Like Fortis, one of the reasons I like Restaurant Brands stock (and it’s my largest holding) is the fact that this company has paid a dependable and growing dividend over this time frame. The company’s current yield of 3.2% is considerable, as is the company’s growth profile, particularly internationally. Thus, for those looking for a long-term buy and hold, this is one stock I think is worth buying, even at these levels.
Bank of Nova Scotia
Given the banking crisis that’s unfolded over the past month, investors may be excused for putting Bank of Nova Scotia (TSX:BNS) and its peers on the back burner. Scotiabank is a Canadian multinational banking and wealth management services provider. One of the top-performing banks over the past five years, I think this trend should continue moving forward, barring any sort of black swan events.
Scotiabank’s growth profile is more robust than most of its peers, largely due to the company’s exposure to Latin America. Accordingly, with a dividend yield of 6%, and strong earnings growth backing the company’s financials, this is one bank that I think may be worth picking up on the recent selloff.