Although investing your money to reach financial freedom isn’t necessarily easy, it doesn’t have to be difficult either. In fact, all it really takes is the ability to keep your emotions in check and find some of the best stocks on the TSX to buy now and hold forever.
Buying and holding stocks for the long term is an essential strategy because it’s much easier to pick high-quality companies with years or even decades of growth potential than trying to consistently identify the hottest stocks on the market and rotate in and out of them.
Furthermore, giving yourself a long timeline to invest in stocks allows you to mitigate the risks of short-term volatility. In fact, you can actually use these opportunities, temporary dips in stock prices, to buy more shares while they’re undervalued.
So, with that in mind, if you’ve got cash that you’re looking to put to work today, here are there of the best Canadian stocks to buy now and hold forever.
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One of the best TSX stocks to buy for safety and income
Whether you’re closer to retirement, looking to shore up your portfolio or just want to boost the passive income your portfolio generates, Fortis (TSX: FTS), the massive $27 billion utility stock, is one of the best to buy now.
Fortis’ operations are essential and therefore highly reliable and defensive. Furthermore, its future revenue and earnings potential are highly predictable due to government regulation of the sector, as well as its operational diversity, which also helps to keep risks low.
In addition, because it’s consistently generating solid earnings and free cash flow, Fortis is a top choice among investors who are looking to earn significant and growing passive income.
In fact, its dividend, which currently yields upwards of 4.2%, has been increased every single year for half a century. Plus, in just the last five years, the dividend has grown by more than 30%.
It’s also worth noting that with interest rates on the decline, Fortis’ industry economics should continue to improve, giving the stock a significant near-term catalyst for further share price appreciation.
So, if you’re looking for a safe and reliable dividend stock to buy now, Fortis is one of the best on the TSX.
A top growth-by-acquisition stock
Another of the best Canadian stocks to buy now is GFL Environmental (TSX: GFL), an environmental services company that has grown rapidly by acquisition.
GFL is one of the best to buy because it offers both defensive qualities and long-term growth potential. Waste management is one of the most essential businesses in the economy, and GFL’s diversified operations across North America make it extremely defensive.
Plus, with all the acquisitions GFL makes, it continues to scale its costs and improve profitability, leading to consistent share price gains over the long term.
In fact, just this year alone, analysts expect its revenue to grow another 7% and its normalized earnings per share to jump by more than 10%.
So, it’s no surprise that over the 11 analysts covering GFL, nine rate it a buy, with the other two rating it a hold. Furthermore, its average analyst target price of $61.50 is a more than 15% premium to its current price, showing why it’s one of the best stocks to buy now.
A top real estate stock with years of growth potential
Finally, there are plenty of high-quality real estate stocks to buy now on the TSX. However, there’s no question that one of the very best real estate stocks to buy now is Granite REIT (TSX: GRT.UN).
Granite is an industrial REIT that owns properties such as warehouses and distribution centres. This industry continues to have plenty of long-term growth potential, particularly with the rising popularity of e-commerce and many retailers shuttering some of their brick-and-mortar locations to focus more on expanding their online sales.
For example, this year alone, analysts are predicting Granite’s sales will rise by over 9%, while its adjusted funds from operations per share are expected to grow by 8.6%. So, it’s unsurprising that all six analysts covering Granite give it a buy rating.
Plus, with its average analyst target price of $86.83, more than 15% above its current trading price, Granite is certainly one of the best real estate stocks to buy today.
