The stock market has been nothing short of volatile for several months. As of this writing, the S&P/TSX Composite Index is up by 2.46% year to date. However, the Canadian benchmark index is still down by 4.09% from its 52-week high.
When the markets are booming, growth stocks present more exciting and quicker wealth growth opportunities for stock market investors. In current circumstances, choosing stable investments becomes a wiser way to put money to work in the market. Whether you are new to investing or are repositioning your portfolio with a long investment horizon, picking stocks with staying power is critical.
Today, I will discuss three TSX stocks with the staying power necessary to keep driving shareholder value to new heights for decades to come.
Canadian National Railway
Canadian National Railway (TSX: CNR) is a $103.29 billion market capitalization giant in the Canadian railway industry and one stock virtually guaranteed to have the staying power to last centuries. With 33,000 km of railway tracks spanning British Columbia to Nova Scotia in Canada and Louisiana south of the U.S. border, it is a mainstay in many stock market investment portfolios.
Boasting a 26-year dividend-growth streak, CNR stock has grown its dividend payouts at an annualized 12% compounded growth rate. On average, the long-term annual inflation rate is at only 2%. It means that CNR stock does more than keep pace with inflation when raising its payouts to investors.
As of this writing, CNR stock trades for $153.21 per share, boasting a 2.06% dividend yield. Already over a century old and considering its essential role in the North American economy, CNR stock is here to stay.
Sun Life Financial
Sun Life Financial (TSX: SLF) and other insurance companies offer more long-term investment opportunities for Canadian investors seeking staying power.
The Toronto-based $39.72 billion market capitalization financial services company is known primarily for its life insurance arm. With over $1.3 trillion in assets under management, this insurance company has been around since 1865 and remains solid to this day.
Boasting an eight-year dividend-growth streak, Sun Life also offers savings, retirement, and pension products to customers worldwide. It is also the insurance giant that pioneered the high-net-worth life insurance business.
With its management continuing to focus on expanding to more international markets and integrating tech-powered digital tools to its offerings, it is looking at a bright future. As of this writing, SLF stock trades for $67.75 power share and boasts a 4.45% dividend yield.
BCE
BCE (TSX: BCE) is the $56.33 billion market capitalization leader in Canada’s largely consolidated telecom industry. Leading the charge for 5G adoption and expansion in Canada, is a Canadian Dividend Aristocrat that can be an excellent buy in any market environment.
As the world becomes increasingly digital, people need their internet connection and phones, regardless of economic challenges, effectively making its services essential.
High interest rates and inflation have impacted its bottom line. Its first quarter saw BCE stock’s free cash flow dip by an alarming 88% in fiscal 2023. However, the dip is likely only temporary. Despite the decline in its free cash flow, BCE stock’s management has maintained its full-year guidance for fiscal 2023. As of this writing, BCE stock trades for $61.80 per share, boasting a 6.26% dividend yield.
Foolish takeaway
Not every publicly traded company can weather extreme market volatility. When gearing up for the long run, you must identify and invest in high-quality stocks that can ride the wave of economic downturns.
Well-capitalized companies with resilient business models and wide economic moats make excellent picks for this purpose. To this end, CNR stock, SLF stock, and BCE stocks can be solid investments for your self-directed portfolio.
