Long-term investors always prefer choosing stocks which they can hold for years to come. However, to do so, they must select companies which have adequate growth potential to facilitate capital appreciation in the long run.
Here are three stocks investors can buy today and hold for the next five years.
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Restaurant Brands
Restaurant Brands (TSX: QSR) is a Canadian international quick-service restaurant holding company. In recent notable news, Firehouse Subs (one of the brands owned by this organization) has entered an agreement with Apparel Group to open +100 branches all across Oman and the United Arab Emirates.
The execution of this plan is to happen over the next 10 years, increasing Restaurant Brands’s presence in the Middle East market. Additionally, Tim Hortons International, another subsidiary of the company, has decided to expand the Popeyes restaurant chain all over China. This expansion plan was initiated by setting up a flagship restaurant in Shanghai.
Apart from this, Restaurant Brands has got approval to continue with its share-repurchasing campaign. It will buy back and cancel almost 10% of its outstanding shares, up to an amount of US$1 billion. This move will increase the prices of the remaining shares, thus creating a profit for investors.
I like the direction this fast food operator is headed, its growth trajectory, and how it rewards investors (via both dividends and share buybacks). Those thinking long term can’t go wrong owning this gem.
Apple
Apple (NASDAQ: AAPL) is an American multinational company that designs and manufactures smartphones, tablets, laptops, PCs, and accessories. The company’s most recent iPhone event signalled that Apple is finally moving from its proprietary lightning charger to USB C for its upcoming iPhone 15 models.
It will make iPhones compatible with billions of chargers that are already available in the market, thus reducing the hassles of carrying multiple wires. Furthermore, it will facilitate higher charging and data transfer speeds. Now, while other major updates didn’t come as expected (and the stock took a dip), this could be an excellent buying opportunity for those thinking long term. Apple stock isn’t cheap, but the quality of this name can’t be disputed.
Additionally, it’s worth noting that Apple is planning to shift 18% of its global iPhone production to India. This decision is based on the Indian Government’s Product Linked Incentive (PLI) scheme. It will help the company substantially reduce manufacturing costs and gain an increasing share of the Indian smartphone market. I like the diversification approach here and think Apple is certainly headed in the right direction in terms of stabilizing its supply chain and providing long-term growth potential for investors.
Fortis
Fortis (TSX: FTS) is a gas and electricity utilities company operating in Canada, the U.S., and the Caribbean region. For the previous quarter, it had declared dividend payments of $0.56 per common share. This marks 50 consecutive years of dividend increases by the organization.
Additionally, this stock’s current dividend yield is 4.3%. It is slightly higher than the 2.992% sectorial average, indicating the company’s market-beating potential.
Apart from this, Fortis has received permission from the British Columbia Utilities Commission (BCUC) to initiate its Advanced Metering Infrastructure project. It will replace all small commercial and residential meters with advanced systems that provide better safety, efficiency and resilience.
Overall, each of these stocks represents excellent value at current levels for those thinking long term, in my view.
