The search for “forever stocks” – whether they be high growth names, dividend stocks, or top undervalued names – is one I think we’re all on. As investors who are interested in picking individual stocks (either entirely, or as part of a diversification strategy alongside ETFs and other equities), finding such companies isn’t an easy task.
Moreover, finding companies that have shown consistency and the ability to continue to perform over very long time frames can be even harder.
That said, after following so many Canadian stocks for so long, I’ve got a pretty good handle on the two names I’d put in this bucket. Here are my two top “forever” stocks I’d consider holding and never selling.
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Fortis
What’s interesting about Canadian utilities giant Fortis (TSX: FTS) is that this company is one so-called forever stock I’d actually argue has some of the strongest near-term catalysts of any Canadian name out there.
That’s because we’re on the precipice of seeing energy demand absolutely skyrocket from here. With the rise of AI, machine learning, autonomous vehicles, and so many other mega trends underway, we’re already seeing upticks from investors looking to benefit from the rise of these very strong trends.
The thing is, even if AI euphoria dies down, Fortis’ core residential and commercial customer base aren’t likely to turn off their lights or heat anytime soon. Thus, there’s a strong defensive nature to Fortis’ business model that shouldn’t be overlooked.
And from a dividend perspective, the company’s five-decade-long streak of hiking its distribution is impressive. Those looking for substantial total returns over the long haul can’t go wrong owning this name. That’s my view, at least.
Restaurant Brands
Another top Canadian stock I’ve continued to pound the table on as a defensive long-term holding is Restaurant Brands (TSX: QSR).
The parent company of Tim Horton’s, Popeye’s, Burger King and a number of other profitable and growing fast food brands, the company has seen solid growth in the past, which has slowed somewhat of late.
Much ado has been made of the rise of GLP-1 drugs, and how these may impact the company’s earnings moving forward. The thing is, recent quarters have shown robust top and bottom line growth. And as Restaurant Brands continues to expand globally, I think a two-factor growth strategy (building new locations and same-store sales growth) could lead to the kind of upside investors are looking for.
With a robust dividend yield of its own and operating in one of the more defensive areas of the dining market (plenty of trade-down upside), there’s a lot to like about how QSR stock is positioned here. For those thinking long term, I don’t see why buying right now and holding forever is a bad idea.
