The market is full of great, if not unstoppable, Canadian stocks that can provide growth and income-earning opportunities for a decade or more. It has never been a better time to pick up some of those stocks to hold for the long term.
Here’s a look at two unstoppable Canadian stocks to add to your portfolio today.
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The big bank that is refocusing on its core market
Toronto-Dominion Bank (TSX:TD) is a great example of one of the unstoppable Canadian stocks to own right now. TD is the second largest of Canada’s big bank stocks.
The bank boasts a sprawling network stretching from Maine to Florida in the U.S., where it operates more branches than it does in Canada. And it’s that Canadian market that TD is setting its focus on, at least for the moment.
The big banks have historically turned to international markets (more specifically the U.S. market) for growth. In the case of TD, that massive U.S. presence came about following the Great Recession when TD acquired smaller regional players and stitched them together.
The growth policy came to a screeching halt last year as regulators found TD liable for not doing enough to stop money laundering. As a result, the bank was hit with a hefty fine of over US$3 billion and an asset cap was placed on the bank’s U.S. business.
A perfect example of TD being one of the unstoppable Canadian stocks comes from how the bank responded to those conditions.
Not only did the bank set aside funds for that fee well in advance of the ruling, but since then, TD has made progress in other areas. This includes restructuring its balance sheet by selling off some jumbo mortgages and liquidating some lower-yield securities.
And just this week, TD announced it was selling off its 10% stake in Schwab. That transaction will give the bank nearly $20 billion, which TD plans to use to fund organic growth while also performing a share buyback.
Throw in a juicy quarterly dividend boasting a yield of 5.1%, and you have one of the unstoppable Canadian stocks suitable for any investor.
The energy infrastructure behemoth
Another one of those unstoppable Canadian stocks to own is Enbridge (TSX:ENB). Enbridge is best known for its reliable pipeline business. That business, which includes both natural gas and crude segments, represents one of the most defensive moats anywhere.
That’s because Enbridge hauls one-third of all North American-produced crude and one-fifth of the natural gas for the U.S. market. The sheer volume is staggering, but incredibly, not the only thing Enbridge offers.
Enbridge also boasts a growing renewable energy business that Enbridge has dropped $12 billion into over the past two decades. Today that segment boasts over three dozen facilities located across North America and Europe.
Additionally, Enbridge also owns the largest natural gas utility in North America. That segment now boasts a whopping seven million customers following a series of acquisitions in recent years.
In short, both the renewable energy facilities and natural gas business provide a reliable revenue stream backed by long-term regulated agreements. More importantly, that stable revenue stream leaves room for Enbridge to invest in growth and pay out a handsome dividend.
That dividend is another reason why Enbridge is one of the unstoppable Canadian stocks to own. As of the time of writing, the yield on that quarterly dividend is an impressive 5.8%. This makes it one of the better-paying options on the market.
You will regret not buying these unstoppable Canadian stocks
All stocks, even those with defensive appeal like Enbridge and TD, carry some risk. That’s why the importance of diversifying cannot be understated enough.
Fortunately, both TD and Enbridge have sizable moats and reliable business models to offset some of that risk.
In my opinion, one or both stocks are superb picks for any long-term diversified portfolio. Buy them, hold them, and watch them (and your income) grow.
