With the TSX Index poised to finish the first quarter up around 6%, millennial investors may wish to jump back into markets now that a potential breakout is in sight. As impressive as 6% in one quarter is, the S&P 500 is up just north of 10% over the same timespan.
Indeed, starting the year with a bang has had some folks concerned that the road ahead may prove choppier. And while I’d never rule out the potential for a 5-15% pullback (such declines are only to be expected every year or so), TFSA investors shouldn’t find the need to trim profits or hold on to too much cash. Just because the U.S. stock market may be a tad overheated doesn’t mean there aren’t individual opportunities on this side of the border!
In this piece, we’ll check out two Canadian stock plays that I’d look to buy and hold for decades at a time. Though a 50-year timespan may be a tad unrealistic for all but the youngest investors, I do think that the following plays deserve an extremely long-term spot at the core of your TFSA. Let’s get into the names already:
Restaurant Brands International
Restaurant Brands International (TSX:QSR) stock has been a pretty strong performer of late, with 5% in year-to-date gains. As we head into the midpoint of 2024, I’d be willing to bet that QSR stock will add to its breakout. As next-generation order technology hits the fast-food industry, look for Restaurant Brands to double down as it looks to remove friction from the ordering process (that’s a sales driver) while saving on labour costs where possible.
Indeed, Restaurant Brands may not be a quick-serve tech pioneer, but it has room to catch up to some of the tech-savviest restaurant plays out there. With a willingness to invest in organic growth (and new tech), look for QSR stock to start separating itself from the pack over the next five years. With some of the strongest chains in the quick-serve scene (think Burger King, Popeye’s, and Tim Hortons), it’s a mistake to overlook the name while it’s commanding a near-3% dividend yield while it’s still in growth mode.
Over the next 50 years, my guess is we’ll still be eating burgers from Burger King, coffee from Tim Hortons, and chicken from the local Popeye’s. In that regard, QSR stock is a wide-moat dividend growth star in the making.
Fairfax Financial Holdings
Fairfax Financial Holdings (TSX:FFH) is one of the Canadian companies that you simply cannot ignore. Prem Watsa’s comeback has been profoundly rewarding to investors who stood by his side through Fairfax’s darkest days (think earlier in the COVID pandemic). Nowadays, FFH stock is one of the hottest momentum plays in all of Canada.
Year to date, the stock has surged more than 20% – not bad for just one quarter! I think more gains could be ahead as the firm shrugs off short-seller allegations and improves business fundamentals. Better underwriting and smart value investments are just a part of the reason why FFH stock is a great long-term buy for any TFSA.
