Some Canadian stocks are worth hanging onto for more than just a decade at a time. Undoubtedly, committing to never sell a stock is pretty unrealistic. Indeed, life happens, and some unexpected expenses may very well cause you to hit the sell button on your favourite stocks, at least for now. That doesn’t mean one can’t buy back into a position at a later date once their situation has changed, however.
Either way, in this piece, we’re going to look at the types of businesses that TFSA (Tax-Free Savings Account) investors may wish to stash away for the long haul. Whether that means hanging onto them for many years or until your expected retirement day, some Canadian stocks deserve a core, semi-permanent spot in your portfolio.
Indeed, it’s always a smart move to make a big profit where there are significant gains to be had. That said, if you’re looking at a dividend grower that keeps rewarding you with a nice 5-6% or even a +10% raise every year, it may be a good idea to just hang on and continue collecting those dividend payouts. In other words, you won’t want to sell a stock because its dividend is a gift that seems to keep on giving.
Why sell the goose that consistently lays golden eggs that get larger each year? Indeed, that’s why it makes sense to hold such names, even when moving into retirement, a time when passive income from investments becomes that much more important.
Here is just one Canadian stock that I have no plans to sell anytime soon.
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Restaurant Brands International
Restaurant Brands International (TSX:QSR) is a quick-serve restaurant firm with an incredibly underrated dividend-growth trajectory.
The Canadian firm is well known for being behind the Tim Hortons, Burger King, Firehouse Subs, and Popeyes Louisiana Kitchen brands. And while the company has more room to grow internationally with each chain, I find the firm to be getting overdue for a small acquisition. Indeed, the company probably won’t stop at four major chains, especially if it sees value in the global quick-serve restaurant scene.
For now, I view Restaurant Brands as a cash cow of a company with the option to take over a bite-sized rival in the space should the opportunity arise. Additionally, with plenty of untapped markets to expand into, I just don’t see the company’s growth profile eroding anytime soon.
Arguably, Restaurant Brands’s narrative could stay robust for many decades to come. Acquire, improve, drive same-store sales, expand, and repeat. It’s a solid and durable business model that’s led to impressive dividend growth over the years. Indeed, QSR stock fits the bill as a golden goose that keeps laying eggs.
With a 3.36% dividend yield and an absurdly low 16.6 times trailing price-to-earnings (P/E) ratio, the name looks to be worth adding to as it enters 2025 with a bit of sideways trading action. Of course, the restaurant industry has faced inflationary pressure in recent years. But with a renewed focus on value and a new course for growth set, QSR stock looks like a great defensive growth play for a new year.
