A strong and timeless business model is one core characteristic of the stocks you can buy and hold for decades. Not all industry leaders and giants fit this bill, but the ones that might be worth considering as a strong and reliable core of your portfolio. Here are three such stocks that should be on your radar when you are retirement planning.
Image source: Getty Images
A railway giant
Canadian National Railway (TSX: CNR), once a crown corporation, is currently one of the country’s two largest publicly traded railway companies. It’s a massive giant with an impressive North American footprint—over 20,000 miles of track connects three North American ports. The company also has a sizable trucking fleet to augment its railway-based cargo business.
As a stock, it’s worth holding for decades for two reasons: its reliable growth history and dividends. The company has grown its payouts for 27 consecutive years, making it one of the 15 oldest Aristocrats in the country.
The yield is not impressive but practically decent enough at 2.1%. As for the growth, the stock rose by about 98% in the last decade, and while the growth pace has slowed down a bit (and we may see a correction), the long-term potential is still compelling.
A P&C insurance giant
Property and Casualty (P&C) insurance is more dynamic than life insurance. At least, that’s one conclusion you can reach when comparing the performance of a P&C insurance giant like Intact Financial (TSX: IFC) against the performance of life insurance giants in Canada. It has one of the most consistent and rewarding growth histories in the Canadian insurance industry.
The stock has risen by close to 650% since May 2009 and close to 100% in the last five years. Growth has slowed down a bit, but it’s still one of the most promising capital-appreciation potentials you can find in insurance or even the broader financial sector in Canada. The dividend history is impressive as well (18 years of consecutive growth), and the yield is reasonably decent at 1.9%, considering its growth pace.
A waste management giant
Waste Connections (TSX: WCN) is a giant not just in Canada but in North America as a whole. It’s one of the continent’s largest publicly traded solid waste management companies, with an impressive Canadian and American footprint. It also offers commercial waste management services, including special waste management.
While it’s not a strong pick from an ESG (environmental, social, and governance) investing perspective, it’s making significant leaps in that direction. It has one of the lowest emissions intensity in the industry and has significantly reduced its scope-one (direct) emissions.
It’s a decent choice for its long-term growth potential, and rose by over 100% in the last five years alone. At this pace, it can double your capital about every half-decade. It’s also an established Aristocrat, like the two other stocks on this list, but the yield is too low.
Foolish takeaway
The three industry leaders have business models that are expected to remain relevant for decades, impressive footprints, and ample opportunity for local and international growth. Their futures might be just as bright as their histories, which are impressive, and their track record makes them ideal for long-term holding, stretching over decades.
