Recent market volatility has some, primarily newer investors concerned. Those concerns can be eased by focusing on the longer-term potential over the shorter-term risks. To accomplish that, the market provides great options to buy today and hold for the next five years.
Here are three such examples to consider buying.
Buy today and hold for the next five years
Finding that perfect mix of investments with defensive appeal as well as growth and income-earning potential can be a long, frustrating ask. Fortunately, investing in Fortis (TSX: FTS) is a great option to buy today and hold for years.
Fortis is one of the largest utilities on the continent. Utilities generate a stable and recurring revenue stream that is backed by long-term regulated contracts. Those contracts in turn allow the utility to pay out a generous dividend.
For Fortis, that dividend is a quarterly payout that carries a yield of 3.88%. Even better, Fortis has provided an annual uptick to that dividend for an incredible 49 consecutive years. Fortis is on track to hit that 50-year mark and become the second Dividend King in Canada later this year.
This factor alone makes Fortis a must-have stock to buy today and hold for the next five years.
Forget the mortgage and tenants. Just buy this REIT
Establishing a rental property remains one of the most sought-after and lucrative income sources available to investors. Unfortunately, high-interest rates and a white-hot real estate market make that a very expensive task.
This is where the appeal of RioCan Real Estate (TSX: REI.UN) comes into play. RioCan is one of the largest REITs in Canada, with an impressive portfolio of over 200 properties. Those properties are located mainly in Canada’s major metro areas, with an emphasis on retail.
That mix is increasingly shifting towards mixed-use residential properties, a market representing a massive opportunity for investors. RioCan calls the growing segment RioCan Living, which consists of residential towers situated atop several floors of commercial retail. The properties are located along high-traffic transit routes in Canada’s major metro areas.
Perhaps best of all is RioCan’s distribution. Like a tenant paying rent, RioCan pays out on a monthly cadence, and as of the time of writing, the yield works out to a juicy 5.39%. This means that an investor with $30,000 to invest in RioCan could generate a monthly income of over $130.
Keep in mind that investment is considerably smaller than the downpayment on a single rental property. It’s also considerably less risky and can be an auto-pilot investment to buy today and hold for the next five years or longer.
Buy now and sell…never?
Another interesting segment for consideration is Canada’s telecoms. Specifically, BCE (TSX: BCE) is a stock that should be on the radar of investors everywhere.
Telecoms are great defensive investments. They provide a slew of increasingly necessary services to subscribers across the country. In the case of BCE, the company is also a media behemoth blanketing the country with dozens of radio and TV stations. This provides an additional revenue stream for the company.
Turning to BCE’s traditional subscriber-based services, the wireless and internet segments continue to see impressive growth. That growth can be traced back to the effects of the pandemic, with more students and employees now working in a remote capacity full-time.
By way of example, in the most recent quarter, BCE saw net postpaid activations in its mobile segment jump 26.5% over the prior period. Consumer internet revenue also saw a 10% uptick in the quarter.
That defensive (and growing) revenue stream means that BCE can provide a juicy dividend, which it has done for over a century. As of the time of writing, BCE offers an impressive 6.2% yield.
Final thoughts
No investment is without some risk, but the three stocks mentioned above counter that risk with some defensive appeal. They’re also established players in their respective segments and boast a juicy dividend.
In my opinion, one or all belong as core holdings in a larger, well-diversified portfolio.
