Even though the market is showing signs of recovery from an impressive decline in 2022, there are still factors looming over the market that can affect the investors adversely. Whether it’s rising inflation, surging interest rates, or recession fears, there are plenty of reasons for investors to steer clear of the stock market right now.
That said, over the long term, investing in stocks is one of the best ways for individuals to growth their wealth. Here are three stocks investors may want to consider as long-term holdings for retirement.
Royal Bank of Canada
Royal Bank of Canada (TSX:RY) is among the highest-quality banks, globally. The lender has provided investors with a decade of consistent dividend growth and is one of the most stable long-term holdings in many institutional and retail portfolios.
Royal Bank’s long-term performance is driven mainly from the bank’s fundamentals. The company has delivered consistent earnings-per-share growth, allowing for a dividend of $1.35 per share to be paid in dividends on a quarterly basis. Thus, for those seeking income, Royal Bank’s 4.4% yield is certainly an attractive option.
This yield, combined with the bank’s long-term growth prospects and stability, makes RY stock an easy top pick for long-term investors right now.
Enbridge
Enbridge (TSX:ENB) has some of the strongest financials among high-yielding stocks in the market. The pipeline operator’s massive 7.1% yield may scare some investors away, though I think this yield is quite attractive, given the outlook for legacy energy infrastructure companies.
One of the reasons for Enbridge’s sky-high yield is the company’s 27 consecutive years of dividend growth. Notably, Enbridge hasn’t really seen much in the way of capital appreciation (relative to other energy names), meaning this is a stock that looks to be undervalued at these levels.
Assuming Enbridge is able to maintain its dividend (and I think that will continue to be the case), this stock is a screaming bargain at these levels for long-term investors.
Rogers Communications
The telecom industry might have not given its best performance lately, but that doesn’t indicate that it’s not worth investing in. Stocks such as Rogers Communications (TSX:RCI.B) are good examples to solidify the statement.
Rogers Communication is yet another dividend-growth stock to make this list, recently booking its dividend payout to US$0.37 per share to shareholders on record as of June 9. This hike has resulted in a forward yield of approximately 3.3% at the time of writing.
Rogers’s long-term business model provides portfolio stability and consistent long-term, high-single-digit returns. This isn’t a stock that’s likely to blow away the market over time. But it’s a steady option for those seeking defensive exposure right now.
Bottom line
Considering their dividend payment history and consistency in dividend payout through the years, these three stocks provide safe-haven opportunities for long-term investors. I’m going to consider adding these stocks on any significant pullbacks from here.
