Finding top stocks that you can buy and hold for a lifetime should be a goal of every investor. Not only does this put your portfolio on autopilot, but if you choose the right stocks it can supercharge your portfolio for the long term.
And perhaps best of all, it’s a lot easier than it sounds and won’t cost a fortune. Here are two top stocks that you can buy right now for your portfolio with just $2,500.
Start with this top stock
Fortis (TSX: FTS) is a stock that should be well-known to most investors. For those unfamiliar with the stock, Fortis is one of the largest utilities on the continent. Utilities generate a stable and recurring revenue stream, thanks to a boring, yet reliable business model.
That business model comprises long-term regulated contracts that span decades in duration. Fortis’ mix includes regulated, electric, and gas segments, with facilities located across the U.S., Canada, and the Caribbean.
And that reliable revenue stream is just the start. Utilities are incredibly defensive picks to consider for long-term investors. In the case of Fortis, that defensive appeal allows the company to invest in growth and pay a handsome dividend.
That dividend is paid out on a quarterly basis. As of the time of writing, Fortis offers a yield of 4.27%.
This means that investors who drop $2,500 today can expect to generate an income of just over $100. That’s not enough to retire on, but through reinvestments it will add a few shares each year.
Even better, Fortis provides investors with annual bumps to that dividend. That’s a practice that Fortis has done for an incredible 49 consecutive years without fail. Fortis is also forecasting that practice to continue through at least 2027, with the average bump coming in between 4–6%.
In short, if you’re looking for top stocks that you can buy now for the longer term, Fortis is a superb candidate.
Investing and income growth on autopilot
Investors looking for top stocks that you can buy should also consider Telus (TSX: T). Telus is one of Canada’s big telecom subscription-based offerings. This includes internet, TV, and wireless offerings.
The pandemic accelerated the push to remote work and study. In fact, many still operate in that capacity. This has made a fast and reliable internet connection one of necessity. By extension, this made an already defensive stock much more appealing for long-term investors.
In the same vein, the wireless segment continues to see strong growth. By way of example, in the most recent quarter, Telus added 110,000 net new phones. The company also saw 124,000 net new connected devices added to Telus’ network.
Despite those gains, the company still posted lower-than-expected results in the quarter. Part of the reason for that dip can be attributed to an effort to increase competition, and by extension, lower rates. That’s on top of the impact of rampant inflation and rising interest rates in the past year.
As a result, the stock has dipped nearly 20% over the trailing 12-month period.
So then, why is Telus considered one of the top stocks that you can buy and hold?
First, investors should look at Telus as a long-term investment. Any short-term dip is handily offset by the massive appeal that Telus offers. In other words, investors should see the current dip as an opportunity to buy an outstanding stock at a decent discount.
Finally, we come to Telus’ dividend. The quarterly payment boasts a juicy 6.33% yield, making it one of the better-paying options on the market. Telus also boasts over two decades of annual or better increases to that dividend.
In short, a $2,500 investment in Telus today will establish a long-term portfolio with significant income-earning potential.
These are top stocks that you can buy and hold for a lifetime. Will you?
Both Telus and Fortis offer investors the opportunity to generate a handsome long-term income. The stocks also boast defensive appeal, which is an attractive quality for long-term investors.
In my opinion, one or both stocks would do well as part of a larger, well-diversified portfolio.
