Finding stocks that you can buy and hold for a lifetime is one of the goals of every investor. Fortunately, there’s no shortage of great investments to help meet that goal.
Here’s a look at two great stocks that both new and seasoned investors alike can buy and hold for a lifetime.
This is a wow stock
The best stocks to buy for long-term growth are those that you can buy today and forget about for a decade or more. Even better is if you can start that investment off with just $2,500.
Enter Fortis (TSX: FTS). Fortis is a utility stock boasting an impressive suite of facilities located across the U.S., Canada, and the Caribbean.
Fortis generates a reliable income stream thanks to its lucrative business model. In short, Fortis’ facilities are bound by long-term regulated contracts that span decades in duration.
And for as long as Fortis provides that utility service, the company generates a recurring revenue stream. And it’s that predictable revenue stream that allows the company to realize growth and pay out a handsome dividend.
As of the time of writing, that dividend works out to an appetizing 4.5%. Prospective investors can take solace in one more key point.
Fortis has provided an annual uptick to that dividend for 50 consecutive years. In other words, investors who aren’t ready to draw on that income yet can choose to reinvest it until needed.
This allows any eventual income to continue to grow on autopilot. That fact alone makes Fortis a superb pick for those looking to buy and hold for a lifetime.
Buy and hold for a lifetime
Another great stock for those investors looking to buy and hold for a lifetime is RioCan Real Estate (TSX: REI.UN).
RIoCan is one if the largest REITs in Canada, with a portfolio of nearly 190 properties. Those properties are located primarily across Canada’s major metro areas.
Historically, those properties have comprised commercial retail sites. In recent years, that mix has changed to include a growing number of mixed-use residential properties.
And that is where an opportunity is emerging for prospective investors of RioCan to buy and hold for a lifetime.
Those mixed-use properties consist of residential towers that sit atop several floors of retail. The properties are located in high-traffic transit corridors in Canada’s major metro areas.
In other words, they are in high-demand areas and cater to the growing number of would-be landlords priced out of the market.
And perhaps best of all, higher down-payment requirements and surging interest rates are of no concern here.
Investors can even take solace in collecting a monthly distribution, much like a landlord collecting rent.
As of the time of writing, RioCan offers an attractive 6.5% yield. This means that investors who have just $2,500 to invest will have an opportunity to grow their portfolio through reinvestment. Again, it’s about being able to buy and hold for a lifetime!
Final thoughts
No investment, even the most defensive is without some risk. That includes otherwise defensive options like Fortis and RioCan.
In my opinion, one or both stocks are stellar options to buy and hold for a lifetime and should be core holdings in any well-diversified portfolio.
Buy them, hold them, and watch your portfolio grow.
