Finding top Canadian stocks with the kind of long-term upside investors are looking for is a noble task, and one I’ve been undertaking for years.
The thing is, after reviewing hundreds of stocks and diving into the best (and worst) companies in many sectors, I find myself continuing to come back to some of the best blue-chip companies in the market. These are companies I’d argue have historically outperformed, but have plenty of strong returns ahead.
Let’s dive into three of the best long-term buy and hold opportunities the TSX has to offer right now.
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Suncor
In the Canadian energy sector, Suncor (TSX:SU) continues to be one of my top picks for investors with a long-term investing time horizon.
The company’s dominant position in the Western Canadian oil sands sector has produced strong returns for investors during various market cycles. Of course, commodity prices are cyclical and go through their own cycles. Following the onset of the pandemic, we saw crazy volatility in energy prices, where the price of crude oil actually went negative for a time.
Despite all that, Suncor is among the leading Canadian energy producers that’s been able to put forward profitability and growth. For those thinking long term and looking for exposure to the energy sector, those are attributes I think can be valuable to consider over long timeframes, particularly for those seeking a dividend yield of more than 4.1% right now.
Enbridge
Another energy-related name, pipeline operator Enbridge (TSX:ENB) has been among my top picks for investors looking for solid dividend stocks with yields that matter.
With a current dividend yield of nearly 6%, Enbridge has historically been a higher-yield option for those seeking passive income streams. I’m of the view that interest rates are likely to decline, and the geopolitical shifts we’ve seen play out may lead to higher demand for companies in the energy infrastructure space.
If you’ve got a similar view, this 6% yield from Enbridge looks like a very attractive offering right now. While Enbridge may not provide as much on the capital appreciation front as other options in the market, this is a stock I’d say has strong potential for double-digit annual returns for decades to come.
That’s good enough for me.
Royal Bank of Canada
For those looking for portfolio stability in difficult economic times, Royal Bank of Canada (TSX:RY) is an excellent long-term option to consider.
Royal Bank’s incredibly stable balance sheet during past periods of severe economic stress for global banks makes this top-10 global lender one I think is worth considering during periods of time like now.
Indeed, there are plenty of headwinds that could shake up the global financial system. But if we do see the kinds of turmoil some are expecting (given what’s going on in the reverse repo market and in pockets of subprime lending once again), Royal Bank could come back into focus for the global investing market.
