Death and taxes are not the only certainties of life. If you are a stock market investor who has been in the game for a while, you are aware of another consistency in life: Prices in the stock market keep moving. Stock market investing is inherently risky because stock prices are volatile. Investors constantly think about fear and greed when investing in the market.
The one thing investors cannot abide is losing. The goal is to maximize gains, regardless of whether there is a bull or bear market. Truly successful investors can see through the short-term noise and market volatility. If you make investments with a long investment horizon, you can ignore the price fluctuations that might otherwise make people panic.
The TSX boasts several high-quality blue-chip stocks that can weather the storm and emerge stronger on the other side, every time. Today, I will discuss three TSX stocks that can be excellent foundations for a well-balanced portfolio.
Image source: Getty Images
Enbridge
Enbridge Inc. (TSX: ENB) is a massive player in the Canadian energy infrastructure industry. Boasting one of the most complex networks in North America, Enbridge is responsible for transporting a lot of the crude produced and consumed in the region. Enbridge also has renewable energy operations that will set it up for stronger performance when the energy industry fully goes green. Furthermore, it has one of the largest utility businesses in North America under its belt, generating predictable and virtually guaranteed cash flows.
Backed by solid fundamentals and a resilient business model, Enbridge is also a reputable dividend-paying stock. As of this writing, it trades for $77.08 per share and pays investors $0.97 per share each quarter, translating to a 5% annualized dividend yield that you can lock into your self-directed portfolio.
Fortis
Fortis Inc. (TSX: FTS) is and always will be my favourite pick from the TSX for literally any season or market cycle. The $39.4 billion market cap utility holdings company is one of the most reliable dividend-paying stocks on the TSX, boasting a 52-year dividend-growth streak. Fortis owns and operates several utility businesses in the regulated markets of Canada, the US, and the Caribbean.
With most of its revenue coming from long-term contracted assets, it has virtually guaranteed and predictable cash flows that let the company fund dividend growth and capital programs. The essential nature of its services makes it a reliable holding, even through economic crises. No matter what people do to cut costs when they have less spending money, no one wants to cancel utilities. As such, this dividend stock can be an exceptional long-term holding for any investor.
Royal Bank of Canada
Royal Bank of Canada (TSX: RY) is one of the biggest reasons Canada’s financial services market is considered one of the best places to invest worldwide. Royal Bank of Canada is the biggest stock on the TSX by market capitalization, and the largest among the Big Six Canadian Banks.
If you seek reliable dividend stocks to hold for the long run, RBC is a no-brainer. RY stock boasts a 156-year streak of paying shareholders their quarterly distributions without fail. This means it has never suspended payments through COVID, global market collapses, and two World Wars. As of this writing, it trades for $252.43 per share and pays $1.64 per share each quarter, translating to a 2.6% annualized dividend yield.
Foolish takeaway
If you are an investor serious about building wealth that will last generations, you must have the discipline for long-term investing. To this end, there is no shortage of high-quality stocks that you can buy and hold for decades to grow your wealth. Fortis stock, Enbridge stock, and Royal Bank of Canada stock are three holdings that can anchor your portfolio to preserve capital and slowly build some serious wealth.
