When it comes to saving for retirement, it’s crucial to choose the right type of fund for your goal. If you’ve got decades of time before your golden years, you have the luxury of taking a chance on funds that may carry more risk and volatility but growth potential, too.
Stocks are an excellent choice for anyone comfortable with volatility and that has time on their side. However, don’t let the potential market swings keep you from investing. The Canadian stock market has a wide range of companies to choose from. Whether you’re looking for a dependable blue-chip stock or a high-growth tech company, the TSX has you covered.
With that in mind, I’ve put together a basket of three Canadian stocks that you can feel confident about holding for the long term. Even better, all three picks are very different from one another, making it a great starter basket for anyone thinking of taking their retirement savings to the next level.
Constellation Software
At a price tag that’s now above $3,000, investors will need to pay up to own shares of Constellation Software (TSX:CSU). Don’t let the steep price keep you away, though. This tech stock has proven that it’s well worth paying up for.
Over the past five years, shares of the $65 billion tech stock are up a market-crushing 240%. In comparison, the S&P/TSX Composite Index has returned just over 30%, excluding dividends.
Now valued at a market cap of $65 billion, the company is likely past its multi-bagger days. But if you’re looking for a dependable market beater, not many companies can rival Constellation Software’s track record.
Royal Bank of Canada
The Canadian banks are a perfect option to balance out the high-growth holdings in your portfolio. During raging bull markets, you’ll curse yourself for not adding more to your Constellation Software position. But during inevitable bear markets, you’ll be glad to own a bank stock or two.
Royal Bank of Canada (TSX:RY) is a perfect choice for anyone new to the banking sector. It’s the largest Canadian bank based on market cap size and boasts an international presence with a wide product offering. You’ll cover a lot of bases by owning this bank stock.
Passive income is certainly another reason to own shares of a Canadian bank.
At today’s stock price, RBC’s dividend is yielding 4.5%.
Brookfield Renewable Partners
This beaten-down energy stock can offer investors the best of both worlds. Market-beating growth potential and an impressive dividend.
Alongside many others in the sector, Brookfield Renewable Partners (TSX:BEP.UN) has had a rough go since early 2021. Excluding dividends, shares are down more than 40% from all-time highs. Still, the energy stock has largely outperformed the broader Canadian stock market over the past five years, returning just about 80% to shareholders.
The silver lining of the recent decline is that the dividend yield has skyrocketed. The yield is just shy of 5.5% at today’s stock price.
Good luck finding another 5%-yielding stock on the TSX that can match Brookfield Renewable Partners’s market-beating track record.
