There are some phenomenal long-term investments on the market right now. Many of those Canadian stocks represent the very best when it comes to defensive, growing dividend, and buy-and-forget appeal.
Investors looking to build out a portfolio of those Canadian stocks should consider these five long-term picks to hold for a decade or more.
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Pick #1: Fortis
Fortis (TSX: FTS) is one of the largest utility stocks in North America. Utilities generate a recurring, stable income thanks in part to their boring yet reliable business models.
In short, utilities provide a service and are compensated for it. That compensation is set out in long-term contracts that span decades. As a result, the utility generates a recurring revenue stream that leaves room for growth and a well-covered dividend.
In the case of Fortis, the utility stock offers a yield of 3.3%. The company also boasts an incredible 53 consecutive years of dividend increases. That’s the second-longest streak in Canada.
Investors looking at Canadian stocks that offer income and defensive appeal will have a hard time finding a better pick than Fortis.
Pick #2: Enbridge
Enbridge (TSX: ENB) is another one of the best Canadian stocks for long-term investors to consider. Enbridge is one of the largest energy-infrastructure companies on the planet. The company operates a renewable energy business, a natural gas utility, and a massive crude and natural gas pipeline system.
That pipeline business generates the bulk of Enbridge’s revenue. And thanks to the sheer amount of crude and natural gas transported across its network, Enbridge is one of the most defensive picks on the market.
The defensive appeal of the pipeline business is just one part of the appeal of Enbridge. Enbridge charges for use of its network, irrespective of commodity prices. This means that Enbridge operates more like a toll road, generating recurring revenue.
That revenue allows the company to invest in growth initiatives and pay its attractive quarterly dividend. That dividend currently carries a yield of 5.3%.
Enbridge has also provided consecutive annual bumps to that dividend for three decades, solidifying its place as one of the top Canadian stocks for any portfolio.
Pick #3 – Scotiabank
It would be hard to mention the top Canadian stocks to own without mentioning one of the big bank stocks. Bank of Nova Scotia (TSX: BNS) is the bank stock to own right now.
Canada’s banking segment is well-regulated and mature. Complementing that is Scotiabank’s international presence, which provides growth appeal.
The combination of both provides a balance that makes Scotiabank a solid option for long-term investors. What really pushes the bank to the next level is Scotiabank’s quarterly dividend.
Scotiabank has been paying dividends for nearly two centuries without fail. As of the time of writing, the bank offers a yield of 4.1%, with over a decade of annual increases.
Pick #4 – Canadian National Railway
Adding to the list of Canadian stocks to own is Canadian National Railway (TSX: CNR). Canadian National is an appealing pick that offers a respectable 2.4% yield backed by decades of consistent payments and annual increases.
Canadian National’s massive network transports a wide variety of goods across North America each day. Those goods are diversified across a broad cross-section of the market, making the railway a truly diversified operation.
In a well-diversified portfolio, the railway stock fits the part of a long-term compounder that can provide growth for decades.
Pick #5- RioCan
Wrapping up the five Canadian stocks for investors to hold is one of Canada’s largest REITs, RioCan Real Estate (TSX: REI.UN). RioCan offers investors an opportunity to generate monthly income, similar to a landlord collecting rent.
RioCan’s portfolio of properties is focused on major metro markets and has shifted in recent years to include more mixed-use residential properties. These properties provide the REIT with a hedge against purely commercial retail sites and cater to the growing demand for housing.
RioCan’s monthly distribution offers a yield of 5.3%, making it one of the better-paying top Canadian stocks on the market.
Are you buying these stocks?
The Canadian stocks mentioned above offer a mix of long-term growth, income-generation, and defensive appeal.
In my opinion, these stocks can be a solid anchor for any well-diversified portfolio.
Buy them, hold them, and watch your income grow.
