3 of the Best Canadian Stocks I Plan to Hold Until Death Do Us Part

There are fun little investments to make and staples among Canadian stocks. These are the three I’ll always hold.

| More on:
Mature financial advisor showing report to young couple for their investment

Image source: Getty Images

Investing in the stock market can be a thrilling yet challenging journey. While some investors prefer a fast-paced trading style, others find solace in the steady and patient approach of long-term investing. In this article, we’ll explore the advantages of long-term investing and discuss three Canadian stocks that make excellent choices for such a strategy.

Why long-term investing?

Long-term investing, often dubbed the “buy-and-hold” strategy, involves purchasing stocks with the intention of keeping them for several years or even decades. This approach has several compelling advantages. Firstly, it minimizes the stress associated with day-to-day market fluctuations. This makes it suitable for investors who prefer a more relaxed approach. Secondly, it allows your investments to grow over time through the magic of compounding. Additionally, by holding stocks for the long term, you avoid transaction costs and capital gains taxes that can eat into your returns.

CIBC stock

Canadian Imperial Bank of Commerce (TSX:CM), or CIBC, is one of Canada’s oldest and most respected financial institutions. Despite some recent setbacks, CIBC stock remains a compelling long-term investment. Currently offering a 6.71% dividend yield, it’s a solid choice for income investors.

With a price-to-earnings (P/E) ratio of 10.49, it’s reasonably priced. Furthermore, it’s trading at a discount down 12% in the last year. CIBC’s decision to reduce its focus on the soft U.S. commercial real estate sector shows its commitment to prudent risk management — a positive sign for investors.

So, while shares are down, CIBC stock is certainly one of the Canadian stocks I’ll be holding for the long term. It offers high dividends, great value, and long-term growth.

Brookfield Renewable stock

In today’s world, the importance of renewable energy cannot be overstated. Brookfield Renewable Partners (TSX:BEP.UN) is a major player in this sector, boasting a 6.36% dividend yield. The 28% dip in its share price over the last year could be an opportunity for savvy investors to get in at a discount.

Brookfield Renewable has been steadily increasing its funds from operations (FFO), reflecting its growth and resilience in a changing energy landscape. With a global presence and a focus on diverse and sustainable energy sources, Brookfield Renewable stock is well positioned for long-term success.

Yet, with this discount, I’ll be picking up more, not taking on less. It’s not only one of the top-paying dividend stocks in my portfolio but perhaps one of the best Canadian stocks for growth.

Vanguard FTSE High Yield

Exchange-traded funds (ETFs) provide an efficient and diversified way to invest, and Vanguard FTSE Canadian High Dividend Yield Index ETF (TSX:VDY) is no exception. With a 4.81% dividend yield and a P/E ratio of 9.89, VDY offers a strong mix of income and value. The ETF tracks the FTSE Canada High Dividend Yield Index, which focuses on high-yield Canadian dividend stocks. This diversified approach mitigates the risk associated with investing in individual stocks and provides investors with exposure to a broad range of dividend-paying companies.

Investors in VDY can benefit from the combined strength of multiple high-yield Canadian stocks. This reduces the impact of poor performance in any single company. Furthermore, ETFs generally have lower fees compared to actively managed mutual funds, making them an attractive option for cost-conscious investors. So, if all else fails, it’s one of the Canadian stocks that I’ll hold onto above all else!

Bottom line

Long-term investing is an ideal strategy for those seeking stability and steady growth in their portfolios. CIBC, Brookfield Renewable, and VDY offer compelling choices for long-term investors among Canadian stocks. CIBC’s solid reputation and commitment to risk management make it a reliable choice. Brookfield Renewable’s focus on renewable energy aligns with the future and growth. VDY, as an ETF, offers diversification and cost-efficiency. That’s why they are excellent long-term options among Canadian stocks.

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 Amy Legate-Wolfe has positions in Brookfield Renewable Partners and Canadian Imperial Bank Of Commerce. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Hour glass and calendar concept for time slipping away for important appointment date, schedule and deadline
Dividend Stocks

This 8% Dividend Stock Pays Cash Every Month

Earn monthly cash of $154 with this 8% dividend stock.

Read more »

oil tank at night
Dividend Stocks

Think Oil Is Going Higher? 3 Dividend Stocks to Buy Now

Looking for steady dividend growth? These three Canadian oil stocks could provide substantial dividend income in the coming years.

Read more »

Profit dial turned up to maximum
Dividend Stocks

This 7% Dividend Stock on the TSX is Worth Watching

With this superb TSX stock now trading at the bottom of its 52-week range, it's certainly a dividend stock you'll…

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

2 TSX Dividend Stocks to Buy While They Still Offer Great Yields

These top dividend-growth stocks now offer 7% dividend yields.

Read more »

Dots over the earth connecting the world
Dividend Stocks

1 Magnificent Dividend Stock Down 23% to Buy Right Now Near a Once-in-a-Decade Valuation

Patient investors could be happy with this dividend stock a few years down the road.

Read more »

Human Hand Placing A Coin On Increasing Coin Stacks In Front Of House
Dividend Stocks

Best Stocks to Buy in May 2024: TSX Real Estate Sector

Besides yielding stable monthly passive income, these top TSX real estate stocks could help you earn high returns on your…

Read more »

exchange-traded funds
Dividend Stocks

These 2 Dividend ETFs Are a Retiree’s Best Friend

Retirees looking for steady income will love these two Canadian dividend ETFs

Read more »

Bad apple with good apples
Dividend Stocks

Safe and Sound Stocks for Canadians: My Top 5 Choices

Want some of the best stocks for Canadians right now? Here's my top 5 list of stocks to buy today…

Read more »