You don’t need a million dollars to start investing in the stock market and become successful. You can start investing with as little as $3,000 and use that as a launch pad to grow your capital and invest more to achieve your long-term financial goals. Rather than a massive capital from the get-go, you can use the power of compounding to make the initial investment much larger.
By investing in dividend stocks and reinvesting the payouts to buy more shares of the stock while making additional contributions monthly, you can grow $3,000 into as much as $100,000 in as little as 25 years! It all depends on how disciplined you are with investing and where you allocate the capital.
Today, I will discuss three stocks that can be excellent long-term investments to consider for a solid self-directed investment portfolio.
Brookfield
Brookfield (TSX:BN), formerly known as Brookfield Asset Management, is a $106.77 billion market capitalization alternative asset management company that owns and manages commercial property, power, and infrastructure assets. Diversified across several sectors of the economy, its portfolio generates significant revenue through its global asset management business.
Investing in Brookfield stock is as close as you can get to investing in a broad market index fund while investing in a single equity security. Despite being diversified, it always outperforms the broader market. As of this writing, BN stock trades for $70.81 per share and is up by 36.70% year to date. In the same timeframe, the S&P/TSX Composite Index is up by 14.35%.
Canadian Imperial Bank of Commerce
Canadian Imperial Bank of Commerce (TSX:CM) is the fifth-largest bank among Canada’s Big Six banks, boasting a $79 billion market capitalization. While all of the Big Six make excellent long-term holdings, CIBC might fare better than some of its peers from a passive-income perspective.
The bank has shown consistent financial strength over the years, with its third-quarter earnings for fiscal 2024 showing a 25% year-over-year increase in reported net income and a 13% increase in its revenue.
As of this writing, CIBC stock trades for $83.63 per share and boasts a 4.30% dividend yield. Up by 76.28% from its 52-week low and with plenty more room to grow in the long run, it can be an excellent bet for income and long-term growth-seeking investors.
Suncor Energy
Suncor Energy (TSX:SU) is a $64.96 billion market capitalization play on the Canadian energy industry. The Calgary-based integrated company specializes in producing synthetic crude from oil sands.
Besides oil sands development, production, and upgrading, its operations include offshore oil and gas and petroleum refining operations. It also has a retail and wholesale network that effectively lets the company benefit from various verticals.
The company has also started investing in renewable fuels and hydrogen in a bid to align with a transition to a future with lower emissions. As of this writing, the stock trades for $51.13 per share. Up by 27.60% from its 52-week low, it also boasts a 4.26% dividend yield that it distributes at a quarterly schedule.
Foolish takeaway
Stock market volatility can make many new investors worry and take their money out of the market. However, real success as a stock market investor lies in looking at the bigger picture.
By investing in the stock of reliable and resilient businesses that can withstand short-term economic problems and come out stronger on the other side and remaining invested, near-term losses can make way for substantial long-term gains.
To this end, these three TSX stocks can be excellent foundations for your self-directed investment portfolio.
