There are plenty of high-quality dividend stocks that are worth holding for seven years or even longer. While most other investors and traders look for big gains over the next seven weeks, I think going for the long haul is the best way to go, as you take timing out of the equation and let the market reward well-run companies over extended periods of time. Instead of looking to flip stocks, I think it makes more sense to look to own pieces of businesses at a good price, meant to be held over the course of many years.
Even if buying low, selling high, and moving on to the next trade is a profitable strategy for some of the more active and seasoned investors out there, I’d much prefer buying and holding through the appreciation because, like it or not, selling at a high doesn’t mean you’re getting out at a peak.
Some of the market’s best appreciators can continue to rise as their fundamentals improve and the growth narrative comes to fruition. Often, proven performers can overshoot, especially at firms that don’t overpromise and instead let the numbers do the talking for the stock.
Let’s look at two names worthy of a long-term spot in a Tax-Free Savings Account (TFSA) or anywhere else.
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Suncor Energy
Suncor Energy (TSX:SU) stock surged nearly 4% in a single trading session on Wednesday, thanks in part to a bump in oil prices. Indeed, just when you thought the worst of the Iran war was over, things took a turn for the worse. And while oil’s next move will be hard to predict, I think that a well-run energy giant like Suncor looks like a great bet to hedge against another worsening of the situation over in the Middle East.
The stock sports a nice 2.98% dividend yield to go with a 15.9 times trailing price-to-earnings (P/E) multiple. Still down around 13% from its recent peak, I consider the name to be intriguing as the energy trade looks to heat up again at a time when investors may have already moved on.
Regardless of what happens with the Iran-U.S. conflict after the latest troubling development, Suncor Energy stands out as a great dividend growth play for investors seeking value, yield, dividend growth, and more diversification.
Apple
Apple (NASDAQ:AAPL) is flirting with all-time highs again, as the iPhone maker reclaimed the ground lost when the firm made the difficult choice to hike prices amid high RAM prices. Of course, it’s hard to tell how consumers will react. Will they accept that memory chips have gone up in price and accept the fact that electronics are just going to get pricier? Or will some demand destruction hit?
It’s unclear, but Apple isn’t the only company that’s been forced to raise prices in the middle of a Mac and iPad cycle (the iPhone was spared for now). In my view, I think the AI boom’s impact on consumer electronics won’t cause consumers to put their wallets away, provided the upgrades are still worth it.
For Apple, it has a new form factor (the foldable), which could sell well, as well as rumoured big battery and camera upgrades for its iPhone 18 Pro Max model. Given that smartphone prices are going up across the board, I don’t expect Apple to take a hit, even if the next iPhones are the priciest it’s ever made. With a 0.35% yield dividend that’s growing fast, I’d not be afraid to buy at this high and hold for seven years at a time.
