3 Stocks to Buy Today and Hold for the Next 5 Years

Given their solid underlying businesses and healthy long-term growth prospects, these three stocks could deliver superior returns in the long run.

| More on:

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

With the United States posting better-than-expected third-quarter GDP (gross domestic product) numbers, investors are concerned that the Federal Reserve would continue its monetary tightening initiatives, which could hurt global growth and equity markets. Amid these concerns, the S&P/TSX Composite Index has fallen 7.4% in the last two months.

However, long-term investors can ignore these short-term fluctuations and utilize these pullbacks to accumulate quality stocks to earn superior returns. Meanwhile, here are three top TSX stocks with the potential to deliver higher returns over the next five years.

Telus

Telecommunication services are becoming essential amid rising digitization and growth in online shopping, remote working, and learning. Besides, the high initial investment in the telecom sector has created a natural barrier for new entrants, allowing existing players to enjoy higher margins. Given the favourable environment, Telus (TSX:T) is expanding its 5G and broadband infrastructure to increase its reach and customer base. Its PureFibre network reached 3.1 million premises as of June 30, while its 5G network covered 84% of the Canadian population.

Created with Highcharts 11.4.3TELUS PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Supported by these investments, the telco added 293,000 customers during the June-ending quarter, while its ARPU (average revenue per user) grew by 1.8%. Its churn rate stood at 0.91%, which is encouraging. Amid these solid operating metrics, the company’s revenue and adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) grew by 13% and 5%, respectively. Its free cash flow increased by 36.1% to $279 million. However, the company’s net income fell 61% amid increased depreciation, amortization, interest, and restructuring expenses.

The decline in net income and rising interest rates have weighed on Telus, with the company losing 10.7% of its stock price this year. Amid the selloff, the company trades 1.6 times its projected sales for the next four quarters. The company also pays a quarterly dividend of $0.3636/share, with its forward yield at 6.5%. Given its healthy growth prospects, high dividend yield, and attractive valuation, I believe Telus would be an excellent long-term buy.

Fortis

Second on my list is Fortis (TSX:FTS), a utility company that serves the natural gas and electricity needs of 3.4 million customers in Canada, the United States, and the Caribbean countries. The company’s cash flows are stable due to its low-risk utility business. Around 99% of its assets are regulated, shielding its financials from economic fluctuations. Supported by its stable cash flows, the company has raised its dividends over the previous 50 years, with its forward yield currently at 4.25%.

Created with Highcharts 11.4.3Fortis PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Meanwhile, the utility company reported an impressive third-quarter performance last week, with its adjusted EPS (earnings per share) growing by 15.5% to $0.84. Higher pricing, rate base growth, favourable currency translation, and increased profits from its retail business in Arizona due to warmer weather conditions drove its earnings. The company is also expanding its rate base, with a capital investment of $25 billion from 2024 to 2028. These investments could grow its rate base at an annualized rate of 6.3% to $49.4 billion, thus driving its financials in the coming years. Amid these investments, the company’s management is optimistic about raising its dividends by 4-6% yearly through 2028, making it an attractive buy.

Docebo

With businesses adopting corporate e-learning solutions to improve productivity and employee retention, the addressable market for Docebo (TSX:DCBO) is growing. The company has integrated artificial intelligence into its products, allowing its clients to get data-driven insights and enhance learners’ experience. Meanwhile, analysts are projecting the global e-learning market to grow in double digits for the next 10 years, which is encouraging.

Created with Highcharts 11.4.3Docebo PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Further, Docebo is growing its customer base at a healthier rate, with its customers increasing from 900 in 2016 to 3,591 as of June 30. During the same period, the company’s average contract value has increased by around four times. The company earns around 94% of its revenue from subscriptions, thus providing stability to its financials. However, amid the broader equity market weakness, the company has lost about 10% of its stock value in the last two months. Given its healthy growth prospects and discounted stock price, long-term investors can go long on the stock to earn superior returns.

Should you invest $1,000 in Docebo right now?

Before you buy stock in Docebo, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Docebo wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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 Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Docebo, Fortis, and TELUS. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Investing

a person watches a downward arrow crash through the floor
Dividend Stocks

Is This Correction Your Chance? Top 4 Canadian Dividend Stocks on Sale

Stocks may be down, but now is your chance to get some of these top dividend stocks on sale.

Read more »

open vault at bank
Bank Stocks

3 Canadian Bank Stocks to Shield Against Market Downturns

Canadian bank stocks are some of the best options on the market, and these three are probably the top ones.

Read more »

worry concern
Stocks for Beginners

Got $2,000? Buy These 2 Canadian Stocks as Trump Tariffs Rock the Market

There are two Canadian stocks that have continued to do well even amidst this turmoil, so let's take a look.

Read more »

calculate and analyze stock
Bank Stocks

1 Canadian Stock Down 7% to Buy and Hold for a Long Haul

Now is the time to take advantage of this top-notch Canadian stock, buying it while it's still down.

Read more »

ways to boost income
Tech Stocks

How I’d Invest $11,500 in Canadian Fintech Stocks to Revolutionize My Finances

Propel Holdings stock's recent dip could be a trading opportunity for long-term financial gains. Here's why the fintech stock is…

Read more »

Confused person shrugging
Dividend Stocks

Where to Invest $2,500 in the TSX Today

These TSX stocks offer attractive dividends and a shot at decent upside on a rebound.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

Invest $25,000 in These Dividend Stocks for $1,956.66 in Annual Passive Income

Dividends stocks can make a huge difference, even if shares don't move an inch. And these might be the best.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

Got $5,000? 5 Income Stocks to Buy and Hold Forever

These income stocks have a solid dividend-payout history that can help you earn stress-free passive income.

Read more »