The appeal of owning set-and-forget stocks is huge. Rather than chasing the headlines that closely follow every market movement, investors can spend less time watching their portfolio and more time letting their investments work.
Those set-and-forget stocks are easy-to-understand businesses that are both well-established and growing. They often provide sustainable dividend payments that, in some cases, can stretch back decades.
That gives us a good set of criteria to start with. Now then, what are the set-and-forget stocks that investors should buy right now?
Here’s a look at a trio of options that’s on my radar right now.
Source: Getty Images
Brookfield Infrastructure: Essential assets around the world
The first option for investors to consider is Brookfield Infrastructure (TSX: BIPC). Brookfield Infrastructure owns and operates a global portfolio of utilities, transport, midstream, and data infrastructure assets.
At first glance, that gives investors exposure to several different types of essential services through a single ticker. For an investor that isn’t looking to scan endless reports and charts, Brookfield’s business is attractive.
In short, Brookfield acquires those essential assets, operates them, and then looks for ways to increase the cash they generate. And adding to that appeal is that many of those assets generate revenue through long-term contracts.
That essential nature helps Brookfield to generate a stable and recurring revenue stream. In turn, that lets the company invest in growth and pay a dividend.
As of the time of writing, Brookfield offers a yield of 5.13%. For investors considering set-and-forget stocks, a $10,000 position in Brookfield today is enough to generate an income of just over $500.
That’s enough to generate more than a few new shares each year from reinvestments alone.
Enbridge: Income from energy delivery
The second of three set-and-forget stocks to consider right now is Enbridge (TSX: ENB). Enbridge is one of the largest energy infrastructure stocks on the market. In other words, Enbridge earns most of its revenue by moving and delivering energy.
The company does this through several different business units that include both crude and natural gas pipeline networks, a growing renewable energy operation, and a natural gas utility.
The key distinction for investors to note here is that Enbridge isn’t directly tied to the fluctuating price of oil. Enbridge charges for use of its massive pipeline network, rather than by the price of the commodity being hauled.
One of the main reasons why investors continue to seek out Enbridge as one of the best set-and-forget stocks to own is for its quarterly dividend. As of the time of writing, Enbridge offers a yield of 5.75%. That makes it one of the better-paying options on the market.
Using that same $10,000 example from above, investors can expect to earn over $570. That’s enough to generate a handful of new shares each year from reinvestments.
Additionally, Enbridge has paid that dividend without fail for seven decades. Enbridge has also provided annual increases for the last 31 consecutive years.
That fact alone earns Enbridge a place among the set-and-forget stocks to own for the long term.
TD: A bank built for the long haul
It would be hard to list some of the best set-and-forget stocks to own without mentioning one of Canada’s big bank stocks. Today, that bank stock is Toronto-Dominion Bank (TSX: TD).
TD is the second-largest of the big banks and operates a massive branch network in both Canada and the United States. Across both, it serves customers who need everyday accounts, loans, credit cards, and other financial services. It is a business that’s easy to understand, that we all use, and that has strong defensive appeal thanks to Canada’s well-regulated financial market.
Turning to income, TD offers investors a yield of 2.66%. That’s not the highest yield on the market, but it comes with over a century of uninterrupted payments and a decade of annual increases.
For long-term investors looking at set-and-forget stocks, that stability is key.
The bottom line on these set-and-forget stocks
Brookfield Infrastructure, Enbridge, and TD each give a busy investor a clear reason to own them. One offers a broad infrastructure portfolio, one delivers dividend income from transporting energy, and one adds defensive exposure to banking.
In my opinion, one or all should be core holdings in a long-term, well-diversified portfolio.
