Investing can be as easy or difficult as you’d like to make it. If you’re looking to make a quick buck in today’s volatile market, you’ll have your work cut out for you.
The S&P/TSX Composite Index may be flat over the past year, but investors have been on a wild ride. With volatility off the charts as of late, it’s been incredibly difficult to predict which direction the market as a whole is heading.
Unfortunately, even in the calmest of years, it’s not an easy task to predict short-term movements. The longer you stretch the time horizon, though, the more predictable returns from the stock market become. That’s why it pays to have a long-term mindset if you plan on generating wealth through the stock market.
Investing in individual stocks
There’s no such thing as a guaranteed return when it comes to investing in individual stocks. However, the TSX does have its share of dependable companies to choose from that have been consistently generating returns for its shareholders for decades.
The slow-growing but dependable companies are usually not the exciting ones grabbing all the headlines. But when it comes to investing, there’s absolutely nothing wrong with being boring.
I’ve reviewed two top TSX stocks that are perfect for the long-term patient investor. On the surface, neither of these companies screams excitement or double-digit returns. Over time, though, both companies have the potential to put an investor well on their way to becoming rich.
TSX stock #1: Toronto-Dominion Bank
When it comes to dependability, the Canadian banks are tough to beat. With high dividend yields and typically low levels of volatility, any long-term Canadian investor would be wise to consider investing in at least one Canadian bank.
At a market cap of nearly $150 billion, Toronto-Dominion Bank (TSX: TD) is closing the gap on Royal Bank of Canada as not only the largest Canadian bank but also the largest stock on the TSX.
It’s not only dependability and 4.5% dividend yield that should put TD Bank on your watch list. The Canadian bank can also provide an investment portfolio with much-needed international exposure.
TD Bank has done a strong job growing both organically and through acquisitions in the United States. Based on total asset size, it now ranks as a top-10 American bank.
TSX stock #2: Brookfield Renewable Partners
If you’ve been thinking of adding some exposure to the renewable energy sector in your portfolio, now is the time. Who knows when Canadian investors will see deals like this again?
Brookfield Renewable Partners (TSX: BEP.UN) is a Canadian renewable energy leader that also boasts a broad international presence.
Like many of its Canadian peers, the stock is trading far far below all-time highs. Shares are down close to 40% from highs set in early 2021.
Even with the recent selloff, though, shares have still managed to more than double the returns of the broader Canadian market over the past five years. And that’s not even including dividends, either.
With today’s discounted stock price, Brookfield Renewable Partners’s dividend is yielding a whopping 5%.
There aren’t many 5%-yielding dividend stocks on the TSX with a market-beating track record like that of Brookfield Renewable Partners.
