TFSA: 4 Canadian Stocks to Buy and Hold Forever

If you are looking for stocks you can buy and hold indefinitely, you have to look into their market relevance, growth prospects, and fundamentals.

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If you are looking for buy-and-hold stocks to keep in your portfolio indefinitely, there are dozens of picks on the TSX. However, four of them stand out from the rest.

An energy stock

TC Energy (TSX:TRP) is one of the few pipeline-oriented energy stocks in the country, and even though it transports both oil and natural gas, it leans too heavily towards the latter.

The natural gas pipeline structure is massive and responsible for transporting 30% of natural gas consumed in North America, and the company is now planning on focusing on that part of the business alone. The oil transportation business was small to begin with, and TC Energy is planning on spinning it off.

It also has a power business, with a power generation capacity of 4.6 gigawatts, about 75% of which is completely emissionless.

Natural gas and emission-free power are businesses that are likely to remain relevant for decades, allowing the company to keep rewarding its investors with generous dividends and steady long-term growth. Now is a great time to consider TC Energy since it’s heavily discounted and offers a mouthwatering 7.3% yield.

A utility stock

Fortis (TSX:FTS) is one of the first, if not the first, stocks that come to mind when you look for “safe” investments in the TSX. But safety is not the only thing you should look for in a forever stock, and Fortis delivers on the return front as well.

It is the second-oldest Dividend Aristocrat in the country that offers a healthy yield, and the capital-appreciation potential, though limited, is decent enough for slow and steady wealth-building over decades.

Still, the primary reason Fortis can be considered a stock you can hold for decades is its business model. As a utility business with 3.4 million customers and $66 billion in assets, it’s an integral part of the societies in which it operates. As it grows (new homes, new utility connections), the company’s revenue might grow with it. It’s also well-positioned to start entering new markets.

A bank stock

Almost all six of the major bank stocks in Canada can serve as “forever” stocks, but National Bank of Canada (TSX:NA) is easily one of the top two picks.

The reason is its growth history and potential. In the last decade, the stock rose by 140%, and the total returns for the period were over 260%. It’s a compelling pick for the dividends as well since it’s an Aristocrat like most others in the banking sector and is offering a healthy 4.1% yield right now.

The Canadian banking sector is among the safest in the world and is quite resilient against weak market conditions, even recessions. National Bank of Canada is a prime example of these strong characteristics. It recovered from the 2020 crash quite swiftly and is currently the only bank in Canada that went up (just a little bit) in the last 12 months.

An insurance company

If you are looking to invest in a TSX insurance stock that leans more towards growth than dividends, Intact Financial (TSX:IFC) can be a compelling pick. It’s the largest Property and Casualty (P&C) insurance company in Canada and one of the largest in the United Kingdom. This thriving insurance segment has allowed Intact Financial to remain bullish for over a decade.

But even if we stick to a decade’s performance, it’s quite decent. The stock rose about 200% in the last 10 years, and with dividends included, it returned almost 290% to its investors over that period. It has growth opportunities in the U.K. market, which can augment its organic growth here in the country.

  • We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if Intact Financial made the list!

Foolish takeaway

These four blue-chip Canadian stocks are not just safe to hold forever, but they are also quite rewarding. You can experience long-term capital appreciation with these stocks while enjoying a decent passive income made up of reliable dividends from these stable companies.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Fortis and Intact Financial. The Motley Fool has a disclosure policy.

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