There’s no shortage of great investments to buy now for your future portfolio. Among those great picks is a pair of TSX stocks to buy in 2024 that you can hold for the next decade or longer.
Intrigued? Here’s a look at those two TSX stocks to buy in 2024.
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You can’t go wrong here
It would be nearly impossible to mention TSX stocks to buy in 2024 without mentioning at least one of Canada’s big banks. And the one big bank that investors should be looking closely at right now is Bank of Nova Scotia (TSX:BNS).
Like its peers, Scotiabank has a solid domestic segment that generates the bulk of its revenue. The bank also has a growing international segment, but that’s where Scotiabank presents a key difference over its big bank siblings.
Instead of focusing on the U.S. market to fuel international growth, Scotiabank has turned further south to Latin American markets. Specifically, the bank targeted its expansion efforts to Mexico, Columbia, Peru, and Chile.
Investing in developing markets can provide higher growth potential over more mature markets, but that also comes with risks. That’s part of the reason why the bank’s stock growth has lagged most of its peers.
In fact, over the trailing two years, Scotiabank is down nearly 10%. During the same time, Scotiabank’s dividend has swelled to an insane 6.45%.
Considering Canada’s big banks’ overall long-term stability and the appetizing yield on offer, Scotiabank stock is hard to ignore.
This is especially true for long-term investors looking for those two TSX stocks to buy in 2024 to hold for decades.
This defensive pick is down considerably this year
Another great segment to consider buying right now is Canada’s telecoms. The big telecoms are often classified alongside the banks as some of the best long-term options for any well-diversified portfolio.
The telecom for long-term investors to look at right now as one of the two TSX stocks to buy in 2024 is BCE (TSX:BCE).
BCE is one of the largest, if not the largest, telecoms in Canada. The company offers subscription-based services to customers across the country, which generates a reliable and recurring source of revenue.
In fact, some of those segments continue to post solid growth. In the most recent quarter, both the wireless and internet segments posted strong numbers. The wireless segment saw the highest postpaid net activations since 2018, while the retail internet segment had its best quarter since 2007.
Despite that growth, the stock has come under pressure in recent years, first due to the staggered effects of the pandemic and then thanks to interest rate hikes. Rising interest rates make funding growth of capital-intensive businesses like telecoms more expensive.
Additionally, recent rulings by the CRTC that stipulate wholesale access to BCE’s network by competitors haven’t helped. If anything, it’s served as a catalyst for BCE to transition towards offering digital services, including a new retail arm. That transition came with a round of deep and painful job cuts.
As a result, BCE has seen its stock price drop over 25% in the past year. During that same period, BCE’s dividend has soared to an insane 8.53%, making it one of the best-paying dividends on the market.
For long-term investors looking at TSX stocks to buy in 2024, BCE’s weakness should be seen as an opportunity. BCE’s business is well-established, defensive and a worthy option in any portfolio.
A final word on the TSX stocks to buy in 2024
No stock, even the most defensive, is without some risk, and that includes both BCE and Scotiabank. Fortunately, both are well-established in their respective areas and offer some defensive appeal to offset some of that risk.
In my opinion, one or both stocks are great options to consider adding to any well-diversified, long-term portfolio.
Buy them, hold them, and watch them (and your future income) grow.
