If you’re one of many Canadians wondering whether now is the time to invest in the market, guess what? The answer is yes! The answer, in fact, is always yes.
I understand that sometimes look better than others. I also understand that there are a lot of people out there trying to time the market. But the old adage is true. It’s not timing the market that matters; it’s time in the market.
So, if you’ve been sitting on $1,000 wondering whether to invest, know that the time is always a good time. However, what does matter more is how you’re investing it.
Consider stable, long-term stocks
While these can be boring, and you’re not as likely to see a huge surge in share price, that’s exactly why you should like them. Companies that offer stability and long-term growth are perfect for investors. That’s because you can likely look forward to stable growth over the long term, rather than ups and downs.
So, to find the right long-term companies, you need to seek out long-term stocks that haven’t gone up and down in share price. That can be quite difficult. However, start by thinking essential. Essential things that Canadians use every single day will certainly be the best place to take a look when you’re considering stocks.
However, don’t forget to think outside the box. Essential software is also a part of everyday life. Infrastructure for telecommunications is also essential. There is even essential retail. With that, let’s look at three options.
Three stocks to consider
If you’re looking for essential stocks then, there are three stocks I would consider right away. Those are Constellation Software (TSX: CSU), Aecon (TSX: ARE), and Dollarama (TSX: DOL).
Constellation software has made a name for itself acquiring software companies again and again over the years. The company focuses on smaller acquisitions, usually under $5 million. These are essential software companies that do everything from running our subway systems to taking out library books. It’s been around since 1995. In the last decade alone, shares have risen 1,544% — a substantial amount, but a stable one.
Aecon stock is another great option as well. The company has grown its backlog of projects as it continues to see a surge after a pause during the pandemic. Now, it needs to build up the roads we drive, the towers we use, the sewers we … well, you know. Aecon stock has also been around for decades, growing 200% in the last 20 years. Growth hasn’t been as large, but it’s relatively stable until downturns.
That leads us to Dollarama stock. This company seems to do well no matter what. In a downturn, Canadians seek cheaper options, which the company provides. During upticks, it’s able to expand, opening stores around Canada and acquiring international companies. No wonder that it’s grown a whopping 900% in the last decade alone, as of writing.
Bottom line
These companies may not be as exciting as the tech stocks and cannabis stocks of the past. However, many were burned by these investments. That’s why long-term strategies are the way to go. So, make sure to consider these essential stocks if you’re looking for growth. It’s exactly where I would put cash this December.
