Finding stocks that can be truly held for the next two decades is a difficult task. Perhaps more difficult than finding such opportunities is sitting on one’s hands and actually waiting 20 years to see how each does.
Time in the market matters more than timing the market, but over the course of two decades, recessions and a number of market cycles will play out. Whether you’re looking to invest more in growth stocks or more stable cash flow giants, this article has something for everyone.
So, without further ado, let’s dive in!
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Restaurant Brands
Fast food giant Restaurant Brands (TSX: QSR) is one Canadian stock I think investors looking for meaningful growth, value, and dividend upside can comfortably own for the next two decades.
The company’s share price has been bouncing around in a relatively narrow range for most of the past few years. Much of this has to do with the fact that Restaurant Brands’ growth profile has remained relatively steady, though its valuation multiple has come down considerably.
Now trading around 25 times earnings (this is a stock that used to be in the mid-30s not that long ago), Restaurant Brands’ dividend yield has also increased to 3.5%, making the risk/reward with this name very palatable for those thinking long term.
Suncor
For investors looking for some energy exposure within their portfolios, Suncor (TSX: SU) continues to be a top pick of mine as a long-term holding in this sector.
With one of the most efficient business models of any operator in the Western Canadian oil sands, the WCS crude Suncor produces is pivotal to the refining capacity of much of the U.S. midwest. For those bullish on the energy independence theme that’s becoming a bigger part of the national strategies of both Canada and the U.S., Suncor’s size and scale in this important area of economic growth is worth considering.
Additionally, with a very low cost per barrel to produce its crude, Suncor is a company with the ability to weather whatever storms may be coming ahead. Personally, that’s why I think this top energy producer is trading at the levels it is, even with crude oil prices remaining relatively muted of late.
The Metals Company
One small-cap Canadian stock I really think can eventually become at least a mid-cap player (but more likely than not a large-cap leader in its sector) is The Metals Company (NASDAQ: TMC).
What The Metals Company does is mine the ocean floor for golf ball-sized nodules of critical battery minerals. With all the growth expected over the next 20 years from battery development driven by robust electrification trends, TMC is among the most lucrative potential long-term growth stock picks in the market, in my humble opinion.
Rounding out a portfolio of defensive stability in the form of Restaurant Brands and Suncor with a little added growth in the form of TMC (best held in a TFSA, in my view) is a great way to go.
