Got $2,500? 2 Top Stocks That You Can Buy and Hold for a Lifetime

Are you looking for a stock you can buy and hold for a lifetime? Here are two options to buy now and forget about for decades.

| More on:
stock analysis

Image source: Getty Images

Buy-and-forget stocks can be some of the most rewarding investments to add to your portfolio. These stocks are prime candidates to buy and hold for a lifetime, assuming that you can find them.

Fortunately, the market gives us plenty of options to consider. This includes these two great stocks you can buy now for your portfolio. Even better, you can acquire a good position in these stocks for as little as $2,500.

What are those two stocks to buy right now?

Let’s start with Canadian Imperial Bank of Commerce (TSX:CM). CIBC isn’t the largest of Canada’s big banks. In fact, it’s on the smaller side among its peers. But what CIBC does offer investors is a compelling opportunity in the form of a great stock to buy and hold for a lifetime.

Canada’s big banks have historically fared better than their U.S. peers during market pullbacks. This latest bout of market volatility can be traced back to the multiple interest rate hikes over the past year.

And those rate hikes can drag a mortgage-heavy bank, like CIBC, lower. As of the time of writing, the stock is down over 13% in the trailing 12-month period. This makes CIBC a discounted gem to consider.

Turning to income, CIBC continues to impress. The bank offers a tasty quarterly dividend, which currently offers a yield of 6.39%. For investors looking to buy the discounted bank with $2,500 to invest, that could provide an income of $160.

That’s not enough to retire on, but it is enough to passively generate a few shares through reinvestments. Throw in some additional investments, and you have a compelling option to buy and hold for a lifetime.

Oh, and let’s not forget that CIBC has an established practice of providing generous annual upticks. This makes the stock even more appealing to would-be long-term investors.

Another great option to buy right now is Enbridge

Enbridge (TSX:ENB) is a name that is familiar to most Canadians. The energy infrastructure behemoth operates one of the largest and most complex pipeline systems on the planet.

Enbridge hauls massive amounts of crude and natural gas across that pipeline network; nearly one-third of all North American-produced crude and one-fifth of the Natural gas needs of the United States. This makes the stock one of the best defensive options on the market.

And yet, that’s only part of the opportunity for prospective investors.

Enbridge also operates one of the largest utilities in North America and owns a growing renewable energy segment. That renewable energy operation comprises facilities located across North America and Europe.

Those facilities generate a recurring source of revenue for the company, which is backed by long-term, regulated contracts. In short, the growth opportunity is massive, given the growing importance of renewables and Enbridge’s investment into the segment, ($8 billion in the past two decades)

That stable revenue stream allows Enbridge to invest in growth initiatives and pay a handsome dividend. As of the time of writing, Enbridge’s quarterly dividend offers a 7.67% yield. This handily makes it one of the best-paying options on the market.

And like CIBC, Enbridge is also trading down over the trailing 12-month period. The 13% discount on the stock will allow investors with $2,500 to purchase shares to generate an income of $188.

That’s enough to passively acquire four shares through reinvestments, making Enbridge an excellent set-and-forget candidate.

Fact: Buying and holding stocks for a lifetime is possible

In my opinion, both Enbridge and CIBC are superb options to buy and hold for a lifetime and are suitable for any portfolio. Both can provide a growing income stream while also boasting strong growth potential.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Demetris Afxentiou has positions in Enbridge. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Payday ringed on a calendar
Dividend Stocks

How I’d Invest $333 a Month to Target a $6,000 Yearly Passive Income

Today, your TFSA annual contribution is $6,500 in 2023. What if TFSA could pay you a similar amount in yearly…

Read more »

grow dividends
Dividend Stocks

2 Unloved TSX Dividend Stocks That Could Soar in 2024

These top TSX dividend stocks look cheap right now.

Read more »

TFSA and coins
Dividend Stocks

3 TFSA Stocks I’m Eyeing for My 2024 Contribution

In 2024, I'll be adding dividend stocks like Brookfield to my account.

Read more »

TFSA and coins
Dividend Stocks

Canada Revenue Agency: 1 Crucial TFSA Change You Need to Be Aware Of

The TFSA contribution limit is out for 2024 and has increased to $7,000, raising the cumulative contribution room to $95,000.

Read more »

money cash dividends
Dividend Stocks

3 Passive-Income Streams That Will Take You to the Next Level

These passive-income streams do not take a second more of your time. Focus on your day job and look forward…

Read more »

retirees and finances
Dividend Stocks

Retirees: How to Earn $5,500 Per Year in Passive Income Without Putting OAS at Risk

Retirees can use this strategy to boost tax-free income while lowering portfolio risk.

Read more »

edit Women wearing red sweater shopping online and using credit card at home office
Dividend Stocks

How to Create Enough Passive Income to Fund Your Holiday Shopping

Passive income isn't hard work when you find the right methods, and you can create so much cash holiday shopping…

Read more »

green power renewable energy
Dividend Stocks

The Smartest Canadian Stocks for Steady Passive Income

Trying to find reliable passive income and capital upside? Check out these 3 smart stocks for steady long-term returns.

Read more »