Beginners: 3 TSX Stocks to Set and Forget Until 2030

Beginner investors can feel good about targeting blue-chip TSX stocks like Royal Bank of Canada (TSX:RY) and others in a turbulent market.

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Canadian investors who are just starting out should work within their knowledge boundaries, and that typically means targeting equities that they are familiar with. A blue-chip stock, which I would suggest for an investor just starting out, is an industry-defining company that is well-known, boasts a strong balance sheet, and has a long history of stability. Today, I want to target three TSX stocks that beginners can look to set-and-forget until the end of this decade.

Beginners should own at least one super energy stock on the TSX

Suncor Energy (TSX:SU) is a Calgary-based integrated energy company that operates in Canada and worldwide. It is one of the largest integrated energy companies on the planet. The company has made its name as a top oil and gas producer, but it has also made strides in the sustainable energy space in recent years. Former CEO Steve Williams once stated that the company’s oil sands business would last for 100 years. This is an energy stock I love for a beginner.

Shares of this top TSX stock have dropped 11% month-over-month as of close on May 11. That has pushed Suncor into negative territory in the year-to-date period.

This company released its first quarter fiscal 2023 earnings on May 8. Suncor saw its earnings fall sharply in Q1 FY2023 due to headwinds in its crude oil realizations, higher operating expenses, lower upstream production, and weaker oil and gas prices. Beginners should look to buy-the-dip at Suncor, though they may have to stomach some turbulence in an uncertain economic period. Suncor currently possesses a very favourable price-to-earnings ratio of 6.5. Moreover, it last paid out a quarterly dividend of $0.52 per share. That represents a strong 5.3% yield.

This TSX stock is top dog on the Canadian market

Royal Bank (TSX:RY) is the largest TSX stock by market cap and one of the largest financial institutions on the planet. This bona fide blue-chip stock has dropped 1.5% month over month. Its shares are still up 1.4% so far in 2023.

The bank is set to release its second quarter fiscal 2023 results on May 25. In Q1 FY2023, Royal Bank posted adjusted net income growth of 4% year-over-year to $4.3 billion or $7% to $3.05 per diluted share. Canadian bank stocks are proven profit machines that offer a great balance of solid capital growth and income. Its shares possess a solid P/E ratio of 12. Meanwhile, it offers a quarterly dividend of $1.32 per share, which represents a 4% yield.

One more TSX stock I’d suggest for beginners in the early 2020s

Canadian telecommunications are another dependable space that beginners can feel good about for the long term. BCE (TSX:BCE) is a Montreal-based company that provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers across Canada. Shares of this TSX stock have increased 6.7% so far in 2023.

In Q1 FY2023, this company achieved operating revenue growth of 3.5% to $6.05 billion. Meanwhile, adjusted net earnings fell 4.8% to $772 million. BCE reaffirmed its 2023 financial targets, which should boost the confidence of beginners who look to snatch up shares this spring. Shares of this TSX stock last had a P/E ratio of 22. The stock is trading in favourable territory compared to its industry peers. Moreover, BCE offers a quarterly distribution of $0.968 per share. This represents a tasty 6% yield.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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