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.