Growth stocks can be a lot of fun for investors who have a bit of cash set aside for risk. But overall, a portfolio should be a diversified set of assets that spans sectors, countries, and even types of assets such as bonds and funds. And when it comes to investing in the best stocks for the next decade, the list of potential Canadian options becomes a lot shorter.
That’s why today we’re going to focus on three of the best stocks to buy for the next 10 years. These stocks have already been around for far more than a decade, creating long-term income through returns and dividends. But let’s get into why each of them is a strong choice today.
BCE
BCE (TSX:BCE) is one of the best stocks to consider as it remains the largest of the telecommunications companies in Canada. Granted, a merge between Rogers and Shaw isn’t going to be good news for BCE stock. But it’s mainly going to hamper future growth, rather than take away from current customers.
BCE stock remains a huge contributor to the wireless networks across the country, with its fibre-to-the-home network continuing to grow. It held the fastest internet speeds in Canada, and continues to roll out its 5G+ network as well. Yet because of this deal, shares have dropped back by 10% in the last three months.
Yet on a long-term basis, BCE stock is an excellent choice. Shares are up 97% in the last 20 years, and that’s off of steady returns rather than peaks and valleys for investors. Even with the recent deal with Rogers and Shaw, analysts continue to recommend it as a buy. And now, with shares pulling back, you can grab onto a 6.6% dividend yield as of writing. All taken together, it’s one of the best stocks to buy as a long-term hold.
Manulife
Another great choice to consider is Manulife Financial (TSX:MFC). Manulife stock also pulled back recently, mainly due to yet another rise in interest rates from the Bank of Canada. These rate hikes and high inflation have certainly been hard on the insurance and asset management provider. But there will certainly be a recovery period after these rate hikes are over.
Looking back, we can see that Manulife stock went through a similar period during the Great Recession. Shares are now up 50% in the last decade, after the major drop during the 2008 crash. Even if you bought 20 years ago, you’re still looking at an increase of 29% in that time.
There are benefits to investing now, however. First, you’re seeing a pullback in share price of about 7% since 2023 highs. Furthermore, you’re getting in on a recovery in share price, with shares up 8% in the last month alone. There’s likely more on the way as Manulife stock sees the market shift towards wealth management firms once more as rate hikes and inflation eases off. So it’s a great time to pick up this long-term hold, all while collecting a 5.76% dividend.
Royal Bank
Finally, one of the top choices for investors among the best stocks out there should absolutely be a Big Six Bank. Canadian banks continue to hold an oligopoly in Canada, with far less competition than their American counterparts. Because of this, they hold a lot of provisions for loan losses, even after the pandemic.
Still, Royal Bank of Canada (TSX:RY) is a top choice among these stocks. That’s despite seeing its provisions shrink to lower than expected. This saw its stock price drop in the last while, with shares down slightly by 2% in the last six months. Yet shares are already recovering, up 8% in the last month alone. And those shares are climbing closer to 52-week highs.
Royal Bank stock has a lot going for it then. It’s the largest of the banks by market capitalization, with huge income from its wealth and commercial management sector. Further, Royal Bank stock could still see the acquisition of HSBC come through, providing even more short- and long-term growth. Add in a dividend yield of 4.15% as of writing, and it’s one of the best stocks money can buy.
