Is your portfolio diversified? Finding that perfect mix of investments can make all the difference in your portfolio. Fortunately, there are some great long-term picks for Canadians to buy and hold right now.
Those investments can provide a steady stream of income and growth to power any portfolio to greatness.
That’s why the importance of a buy and hold portfolio can’t be understated enough.
So then, where should investors turn to?
Here’s a look at a trio of options that can provide that Buy and hold goodness for decades to come.
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Banking on income and growth over the long term
The first option for buy and hold investors to contemplate is Bank of Nova Scotia (TSX: BNS). As one of the big bank stocks, Scotiabank generates a reliable revenue stream backed by Canada’s well-regulated financial system.
The bank also benefits from its label as being “Canada’s most international bank”. That’s because Scotiabank has a strong (and growing) presence internationally, which is fueling the bank’s growth.
Year-to-date, the stock is up over 20%, making it a solid, yet defensive option to consider in a buy and hold portfolio.
Adding to that appeal is Scotiabank’s quarterly dividend. As of the time of writing, the bank offers a robust 4.65% yield that comes with nearly two centuries of never missing a payment.
Scotiabank also has an established cadence of providing annual bumps to that dividend that goes back years. That fact alone makes this a must-have for buy and hold investors.
Every portfolio needs an energy pick like this one
It would be hard not to mention buy and hold stocks that can provide income without thinking about Enbridge (TSX: ENB). That’s because Enbridge is an energy infrastructure giant that checks off all the boxes.
The company generates the bulk of its revenue from its well-known pipeline business. That operation, which includes both crude and natural gas segments, operates in a passive manner like a toll-road network.
In short, Enbridge generates a recurring revenue stream from transporting crude and gas from refineries to storage facilities across the continent. It’s stable, defensive, and continues to grow.
In fact, Enbridge boasts a multi-billion-dollar backlog of shovel-ready projects to continue growing that segment.
Apart from its pipeline business, Enbridge also operates a natural gas utility and renewable energy outfit. Both generate a reliable, recurring revenue stream backed by regulated contracts.
More importantly. Across all those segments, Enbridge generates sufficient revenue to invest in growth and pay out one of the best dividends on the market.
As of the time of writing, that dividend works out to a 5.6% yield, making it a top option for any buy and hold portfolio.
And best of all, investors should note that Enbridge has provided annual upticks for three decades without fail, making this a top option for any portfolio.
Time for you to shop your portfolio
The third option for buy and hold investors to consider is Shopify (TSX: SHOP). Shopify is a leading tech company powering global e-commerce.
The company operates an innovative platform that allows businesses to spin up an online presence in a fraction of the time when compared to traditional development means.’
Shopify has also broadened that appeal by offering enhancements to its platform, allowing customers to bolt on specific components to their shops. This includes everything from inventory management, support, social media service, order fulfillment and many other areas.
Shopify’s incredible impact on the market has helped propel the stock up over the past years, including an impressive 30% gain this year.
Shopify doesn’t offer a dividend, but its growth potential remains off the charts for long-term investors. This makes it a solid option for any buy and hold portfolio.
What’s in your buy and hold portfolio?
No stock is without risk, which is why a well-diversified portfolio is always the recommended route. Fortunately, the trio of options mentioned above offer some defensive appeal in addition to their growth and income-producing capabilities.
Buy them, hold them, and watch them (and your buy and hold portfolio) grow.
