Building a long-term portfolio that can provide income and growth opportunities takes plenty of patience, ongoing capital to fund it, and the right stocks.
Fortunately, the market gives us plenty of great options to help accomplish that goal.
Here’s a look at four stellar stocks that won’t just kickstart your long-term portfolio but put it into high gear.
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Stock #1: The defensive core
Like a sporting team line-up, individual holdings in a long-term portfolio need a specific role to play. One of those is the defensive core. This is the stock that offers massive defensive appeal to offset market volatility.
It’s also the one pick that, irrespective of how the market fares, will continue to provide a solid anchor for growth and income.
That’s where Fortis (TSX: FTS) comes into focus. Fortis is one of the largest utility stocks on the market. The company operates across ten operating regions that include parts of Canada, the U.S., and several Caribbean nations.
Utilities like Fortis generate a recurring revenue stream that is both stable and growing. Part of the reason for that is thanks to the regulated, long-term contracts that underpin the utility business model.
That stable revenue stream leaves room for growth, investment and dividend payouts.
In the case of Fortis, the company’s quarterly dividend offers a 4.37% yield and an incredible streak of 51 consecutive years of annual increases.
This makes it a solid start to any long-term portfolio.
Stock #2: A stock serving both growth and income goals
It would be hard to mention some of the best long-term portfolio holdings to buy without noting the appeal of Canada’s big bank stocks. Bank of Montreal (TSX: BMO) in particular is the one big bank that should be on the radar of investors.
BMO has been paying out dividends far longer than its peers. In fact, it has amassed nearly two centuries of uninterrupted payments. Today, that yield comes in at 3.52%, making it a great option for any long-term portfolio.
Adding to that income appeal are two additional advantages.
First, BMO has provided annual bumps to that dividend for over a decade. This means that buy-and-forget investors looking to build a long-term portfolio can invest in the bank stock now and let those increases continue to compound.
Second, BMO isn’t just an income investment. The bank also caters to growth investors. In recent years, BMO has expanded its presence in the U.S. market to 32 states. This provides the bank with a source of long-term growth for investors.
Stock #3: Still defensive, but focused on income
A third great pick for investors looking to build a long-term portfolio is Suncor (TSX: SU). Suncor is one of the largest integrated energy companies on the continent.
Suncor is unique among its energy peers for a few reasons.
As an integrated energy producer, Suncor is involved in all aspects of the energy cycle. The company engages in exploration, produces oil from its massive oil sands operation, refines it, and even has a customer-facing arm to sell its products.
That provides Suncor with several cost advantages when compared to non-integrated peers. It also means that Suncor is more defensive and less susceptible to market shifts.
Turning to income, Suncor provides a quarterly dividend that boasts years of annual increases. As of the time of writing, the yield on that dividend is 3.47%.
Stock #4: Full growth
One final stock for investors looking at a long-term portfolio to consider is Dollarama (TSX: DOL). Dollarama is Canada’s largest dollar store operator with a presence in every province.
Despite that strong showing, demand for the company’s unique products, priced at a fixed level, continues to fuel growth. This, in turn, feeds store growth, and by extension, Dollarama’s stock price.
In fact, the stock has grown over 280% in the past five years.
Dollarama’s incredible growth isn’t limited to Canada. The company also enjoys a growing presence in several Latin American countries under its Dollarcity brand, and Dollarama also expanded recently into Australia.
Build your long-term portfolio
No stock is without risk. The four stocks mentioned above provide defensive appeal, growth, and income-earning potential to make them solid additions to any long-term portfolio.
Buy them, hold them, and watch your portfolio grow.
