Investing for the long term requires a certain steadiness of character and patience that’s hard to come by. In today’s ever-evolving world, investors have plenty of reasons to forego investing for retirement. Whether it’s inflationary concerns driving up the cost of living in one’s hometown or unexpected one-time costs that arise from time to time, there are myriad reasons why so many investors don’t put enough away for when the time comes to retire.
The good news is that there are a number of great long-term investing opportunities available today for investors who are willing to take a disciplined long-term approach to the markets. The following two companies are among my top picks on the TSX for investors looking to take such a stand.
So, without further ado, let’s dive in!
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Manulife
Few industries could possibly be as boring as insurance. But within this space, Manulife (TSX: MFC) offers a relatively exciting long-term investing opportunity I think is still worth considering.
The company earns the vast majority of its revenue and earnings from its core insurance business. Among the leading insurance providers in Canada, Manulife has also seen strong international growth, particularly from the company’s expansion into Asia. This move has supported the company’s shift toward becoming a more all-encompassing financial player with a growing wealth management business that is booming, particularly in China and other key markets.
For investors looking for relative stability (and a dividend stock with the potential to create meaningful passive income in retirement), Manulife is a great option. The company’s 4.1% dividend yield is about as robust as they come, supported by a strong balance sheet and a reasonable multiple (few investors are going to balk at a stock trading at 10 times forward earnings).
Fortis
Another excellent dividend stock I continue to pound the table on, Fortis (TSX: FTS) is a company I think is worthy of being placed in most long-term retirement portfolios.
That’s due in large part to the company’s very stable underlying business model. As a leading Canadian utility giant, Fortis earns its revenue via long-term contracts with commercial customers and a robust clientele in the residential world as well. Providing electricity and natural gas services to more than three million households in North America and the Caribbean, Fortis has grown into an absolute juggernaut in this sector with a $33 billion market capitalization.
I think the company’s long-term allure comes not only from its strong and consistent cash flow growth trajectory but also from the willingness of Fortis’s management team to continue to return more capital to shareholders each and every year. The company has raised its dividend for more than 50 consecutive years, which means the current 3.7% yield investors get paid will very likely rise over time. That’s the kind of bond proxy I like, and it’s why Fortis continues to be a top name on my list of retirement stocks to buy right now.
