Investing is often painted as a game of timing. Buying low, selling high, and capturing profits when the market peaks. But for some investments, the wisest choice might be to forget about the sell button altogether. Whether you’re a dividend seeker, a global investor, or a tech enthusiast, these investments offer something unique for every type of portfolio.
CIBC stock
Let’s start with Canadian Imperial Bank of Commerce (TSX:CM). As one of Canada’s Big Five banks, CIBC has a long history of weathering financial storms while rewarding shareholders. At its current price of $94.08, CIBC boasts a market capitalization of nearly $88.85 billion and a forward dividend yield of 4.02%.
In its most recent earnings report, CIBC posted strong results, with revenue reaching $22.7 billion over the trailing twelve months and a return on equity (ROE) of 12.37%. Even more impressive is its quarterly earnings growth of 25.6% year over year, proving that this bank isn’t just surviving, it’s thriving.
CIBC’s valuation is another reason to hold on tight. With a forward price-to-earnings (P/E) ratio of 12.08, the stock remains attractively priced compared to its peers. The bank’s strategic focus on growing its wealth management and capital markets businesses has strengthened its revenue mix — all while its disciplined risk management has kept loan losses in check. As interest rates stabilize and the economy remains resilient, analysts expect CM to continue delivering solid results.
VXC
Next up is Vanguard’s FTSE Global All Cap ex Canada Index ETF (TSX:VXC), a global investing powerhouse that removes the guesswork from diversification. VXC is a one-stop shop for investors who want exposure to the world’s largest companies without overlap in Canada. It holds some of the biggest companies in the world, with a blend of developed and emerging market stocks.
With net assets totalling $2.22 billion, VXC has proven its popularity among Canadian investors, and its stellar year-to-date (YTD) return of 28.75% as of writing speaks for itself. That performance wasn’t a fluke either. The exchange-traded fund (ETF) one-year return sits at a whopping 29.04%. Clearly, VXC has ridden the wave of global economic recovery and surging technology stocks.
What makes VXC particularly attractive for long-term investors is its low cost and diversification. Vanguard’s ETFs are known for their minimal fees, ensuring more of your returns stay in your pocket. The ETF’s holdings are spread across sectors like technology, healthcare, and financial services, providing a cushion against downturns in any single industry. With VXC, investors also gain exposure to regions like Europe, the United States, and emerging markets, spreading risk globally. By holding onto VXC indefinitely, you’re effectively betting on the continued growth of the world’s largest and most innovative companies.
Topicus
Finally, we come to Topicus.com (TSXV:TOI), the rising star of Canada’s tech sector. Topicus, a spin-off of the renowned Constellation Software, has quickly built a reputation for growth and innovation. Specializing in acquiring and scaling vertical market software businesses, Topicus operates a proven and highly profitable model.
In its most recent quarter, the company reported impressive year-over-year growth, with earnings per share (EPS) jumping to €0.28, up from €0.22, a 27% increase. Topicus’s forward price-to-earnings ratio of 45.66 might seem high, yet investors are paying for growth. Over the past year, TOI.V has returned 25.74%, comfortably outpacing the S&P/TSX Composite Index’s 22.25% gain.
What sets Topicus apart is its long runway for expansion. While many tech companies focus on flashy, consumer-facing products, Topicus targets essential, niche software solutions that businesses rely on every day. This strategy ensures recurring revenue and high margins. As the tech sector continues to grow, Topicus is well-positioned to capitalize on opportunities, both through organic growth and strategic purchases.
Bottom line
At the end of the day, great investments are like good friends. You stick with them through thick and thin. CIBC, VXC, and Topicus have all proven their worth with little reason to part ways. Whether you’re in it for dividends, diversification, or growth, these three investments deserve a permanent home in your portfolio. And each will likely reward your patience for decades to come.
