If you are looking for stable steady investments, the TSX has plenty of stocks to choose from. Canadians are known worldwide for conservatism and prudence. As a result, Canadian stocks are renowned around the world for their consistency and resilience.
If you want to earn steady returns over a long period of time, four stocks that TSX investors should consider are Canadian National Railway (TSX:CNR), Fortis (TSX:FTS), Granite Real Estate Investment Trust (TSX:GRT.UN), and Constellation Software (TSX:CSU).
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CN Rail: A top TSX stock with a 100-year history
CN Rail has been around for more than 100 years. It has a pretty good track record of longevity. For the past 10 years, it has compounded returns by 13.5% annually. If you look at its stock chart, it has a steady trajectory to the right.
CN has an incredible transport network across North America. Given its large exposure to Canada, it has a very strong competitive edge in the bulk transport of commodities. There are no alternatives to rail for transporting bulk goods, so this provides CN persistently strong pricing power.
This TSX transportation stock also pays a decent 2% dividend. It has an exceptional record of growing that dividend by close to 14.5% annually. For dividends and growth, CN is a really solid bet today.
Fortis: As safe as it gets
If you want to own a very safe business that provides stable returns, Fortis needs to be on your radar. The company has a diversified portfolio of utilities across North America. 99% of revenues are derived from regulated sources.
The company operates transmission and distribution utilities. These are considered some of the safest utilities given their essential nature to society.
This top TSX stock pays a 3.7% dividend. It has grown its dividend annually nearly for 50 years. Combining dividends and capital returns and this stock has earned an 8.6% annualized return over the past decade. This is not a flashy stock, but it’s a safe dividend stock for a long-term hold.
Granite REIT: A solid real estate investment
Like its name, Granite REIT is a solid TSX stock if you are interested in real estate. It operates Canada’s largest publicly listed portfolio of industrial properties. It has a high-quality mix of logistics, distribution, and manufacturing properties across Canada, the U.S., and Europe.
Industrial has been a very strong real estate class with high demand and strong rental rate growth. In its most recent quarter, it grew cash flows per unit by nearly 20%!
Granite has an excellent balance sheet that helps ensure its distribution’s sustainability. Right now, this TSX stock yields close to 4%. It has a 12-year history of consecutively increasing its distribution. This stock has delivered a 10.5% annualized return over the past decade.
Constellation Software: A top-performing TSX stock
Constellation Software may not be your typical defensive stock. It’s a relatively pricey TSX technology stock. However, the company has delivered exceptional and persistently strong returns for shareholders.
Over the past 10 years, it has delivered 34.5% total annualized returns. Its stock is up over 1,800% in that time. The company acquires niche, mission-critical technology businesses around the world. It owns hundreds of small tech businesses, and it has thousands of businesses in its acquisition funnel.
This TSX stock has some of the smartest capital allocators and managers in the industry. Even though this stock has a market cap of $55 billion, it still has significant room to grow, even if its rate of return were to decline. Constellation may be a top TSX growth stock, but its returns have been consistently up and to the right for years (and hopefully years ahead).
