Holding stocks in a portfolio longer is cost effective, delivering healthy returns and higher rewards to investors. Owning stocks for a lifetime is also possible, provided the companies have enduring businesses, are financially stable, and are reliable passive-income providers.
For me, I can buy shares of Royal Bank of Canada (TSX:RY), Canadian Natural Resources (TSX:CNQ), and TELUS (TSX:T) today and hold them forever. I can increase my positions to ensure my future financial security or a comfortable retirement.
Bedrock of stability
Canada’s banking industry is the safest in the world. The big bank are well-capitalized and the bedrock of stability. RBC is the largest by asset size, with its $170.17 billion market capitalization. Its dividend track record is 153 years and counting. If you invest today, the share price is $121.96, while the dividend yield is 4.5%.
Its chief executive officer (CEO) Dave McKay expects interest rates to come down in 2024. He said the bank should be fine and can manage a soft landing. The cut is timely, too, because most mortgage renewals would be in 2025 and 2026. On September 1, 2023, the Competition Bureau gave RBC the green light to acquire HSBC’s domestic unit, and regulatory approval should follow.
In the third quarter (Q3) of fiscal 2023, net income increased 8% to $3.87 billion versus Q3 fiscal 2022. McKay said RBC delivered solid revenue and volume growth, despite the complex operating environment. The immediate plan is to focus on the cost-reduction strategy and leverage the strong balance sheet. RBC’s diversified business model should also support business growth.
Energy heavyweight
Energy is the second-largest sector by weight (about 19%) on the TSX after the financial market (31%). One of its top constituents is Canadian Natural Resources. This top-tier energy stock has a market cap of $95.2 billion, although it crossed the $100 billion mark on April 21, 2022. CNQ is the first Canadian oil and gas producer to achieve the feat.
The energy heavyweight owns balanced, diverse, and low-decline world-class assets. It produces crude oil, primary heavy crude oil (light, medium, primary heavy, and heavy), natural gas, natural gas liquids, and bitumen (thermal oil). At $87.15 per share, investors enjoy a 20.11% year-to-date gain on top of the 4.1% dividend yield.
Canadian Natural has a considerable inventory of low capital exposure projects that provide excellent returns during normal or right economic conditions. It can also implement large, repeatable drilling programs in the underdeveloped land base. The stock is a Dividend Aristocrat owing to 23 consecutive years of dividend increases.
Multiple revenue drivers
TELUS remains Canada’s second-largest 5G stock, despite the merger of Rogers Communications and Shaw Communications. The $33 billion company provides telecommunications and information technology products and services. At $22.84 per share (-8.76%), the dividend offer is 6.31%.
This Dividend Aristocrat boasts a dividend-growth streak of 19 years, with the yield rising by 7.11% in the last five years. Besides the telecom products (wireline and wireless), TELUS has ample revenue drivers in TELUS International, TELUS technology solutions, and TELUS Health.
Best stocks
I’ll get the best bang for my buck from RBC, Canadian Natural Resources, and TELUS. Moreover, you have the best Canadian stocks you can hold and never sell, regardless of the economic environment.
