Investing in the stock market can be as easy or difficult as you’d like to make it. Those looking to time the market and turn a quick profit will have their work cut out for them. It’s incredibly difficult to predict short-term movements in the stock market.
Long-term investors, however, don’t need to sweat the day-to-day movements. Instead, they can spend their time researching top-quality companies that they’re willing to commit to holding for years to come.
With that in mind, I’ve reviewed three Canadian stocks with winning records over the past couple of decades.
If you’re in it for the long haul, there’s never a bad time to load up on these three TSX stocks.
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Bank of Montreal
Due to the often negative press that American banks receive, some Canadian investors may be turned off from owning bank stocks. However, in Canada, the major banks have a long history of being dependable, cash-generating investments.
I’ve got Toronto-Dominion Bank (TSX: TD) at the top of my watch list for a few reasons.
The first two reasons are dependability and passive income, which really could apply to any of the Big Five. TD won’t be lighting the world on fire with its growth rates anytime soon, but you can count on it to keep volatility to a minimum. In addition, the bank’s dividend is currently yielding 5%.
It’s the bank’s U.S. presence that separates itself from the rest of the Big Five for me. TD continues to strengthen its international presence, notably in the U.S., which is why I’m betting on TD continuing its dominance for many more years.
Brookfield
Why invest in an index fund when you can instead own shares of Brookfield (TSX: BN)? The $80 billion asset manager has investments across a range of different industries, spanning the globe. You won’t find many stocks on the TSX that offer as much diversification as this one.
Despite Brookfield’s diversified portfolio, though, it owns an impressive market-beating track record. Shares are up a market-beating 60% over the past five years and more than 200% over the past decade.
The growth potential alone is enough of a reason to have Brookfield on your radar. When you factor in the diversification the company can provide a portfolio, it becomes a must-own stock for long-term Canadian investors.
Descartes Systems
Descartes Systems (TSX: DSG) is one of the few tech stocks that’s set new all-time highs in 2024, which the company has done several times this year already.
Many tech stocks continue to trade below all-time highs from late 2021. Descartes Systems, however, is up more than 20% since the beginning of 2022.
Shares are also up 130% over the past five years. In comparison, the S&P/TSX Composite Index has returned just over 30%, excluding dividends.
As a Canadian leader in the supply chain and logistics space, there are undoubtedly more exciting tech stocks to own than Descartes Systems. However, you’ll be hard-pressed to find many with as dependable of a market-beating track record as this one.
Growth investors who are looking to minimize risk but still earn market-beating returns should have Descartes Systems on their watch list.
