As the Bank of Canada (BoC) does its job, continuing to raise interest rates to keep driving down inflation (they’ve done a pretty good job thus far), growth stocks are sure to be a rocky ride from here. In any case, Canadian investors should treat the bumps in the road as potential opportunities. Sure, rates can be a drag on stock prices for a while longer. However, as inflation continues to retreat, the pace of rate hikes will slow. Eventually, rates will steady at a peak, and perhaps they’ll be headed lower again.

In any case, here are two TSX stocks I’d be willing to buy and hold for decades at a time. Whether rates stay higher for longer, or there’s a rapid retreat in the cards in 2024, the following names, I believe, provide young investors a great bang for their buck.

Aritzia

Aritzia (TSX:ATZ) is a fashionable women’s clothing retailer with a stock that’s been out of fashion for many months now. Undoubtedly, consumers have felt the pinch, and that’s helped pave the way for a few rough quarters for Aritzia.

At the time of writing, shares of ATZ are down more than 61% from their all-time highs. Things could get worse before they get better as the Canadian economy tests a potential recession at some point over the next year. Even if a recession proves unavoidable, I’d be willing to bet Aritzia will be able to bounce back once consumers are ready to spend again.

It’s always tough to tell when discretionaries like Aritzia are poised for a turn. Regardless, I think it’s hard to argue that there’s already some recession risk factored into the valuation. At the end of the day, Aritzia looks like a great multi-year growth story that trades like a value play at 15.5 times trailing price-to-earnings.

Dollarama

Dollarama (TSX:DOL) is more than just a Canadian dollar store chain; it’s one of Canada’s most impressive defensive growth stocks. The company still has plans to open new stores across the nation, and I have no doubt that most of them will be successful, especially as the economy takes a potential turn lower.

Indeed, high inflation and consumer-facing headwinds have led many Canadians to chase bargains. Whether it be at the local Dollarama or another low-cost retailer, it’s clear that Dollarama is in the right place at the right time.

Given this, DOL stock still looks too cheap to ignore at 31 times trailing price-to-earnings. The stock’s at a new high at $95 and change. I think it has the gas to go even higher. Indeed, Dollarama can’t expand fast enough as calls for good deals grow louder!

The post Copy of 2 TSX Stocks Set for Decades of Strong Growth appeared first on The Motley Fool Canada.

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• 3 Stocks That Canadian Investors Can Feel Good About Buying in Any Market
• 5 Great Canadian Stocks to Buy Right Away With $5,000

Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aritzia. The Motley Fool has a disclosure policy.

These stocks have increased their dividend each year for the last five years or more. And one of those companies is Great-West Lifeco (TSX:GWO).

After a recent sale, Great-West stock now looks like a major performer in the near future. Yet it’s also a strong passive income stock sitting in value territory. So let’s get into why it might be the only stock you need for passive income.

Gaining income through sales

Great-West stock has long been a strong company with a slew of financial services, including everything from insurance to investing. It operates mainly in the United States, Canada and Europe, though continues to keep its eye on ever-growing Asia.

While growth might be slow in the long run, according to analysts, it continues to maintain a focus on advice for wealth and asset management products, as well as investing in tools to attract more clients. The company also continues to hold the largest market position in Canada, yet it lately looks even more attractive.

This came after GWO stock sold its Putnam Asset Management poor performer to Franklin Templeton in a deal worth US$1.8 billion. The deal saw shares shoot up recently, providing renewed growth for those interested in the stock.

And passive income seekers should be.

Providing long-term passive income

The reason I get into all this before talking about dividends is to demonstrate there is room to grow for the company. Investors need earnings growth if they hope to have dividends remain in the near and distant future. In the case of GWO stock, that looks like almost a certainty.

GWO stock currently has a 5.5% dividend yield, which is higher than its 5.26% 5-year average. It also holds a stable payout ratio at 74.76% as of writing, with strong free cash flow at $7 billion to support dividend growth.

Its debt also remains low, with debt-to-equity at 35.5% as of writing. All taken into consideration, GWO stock looks like a great dividend payer. Especially while it trades at 14.3 times earnings, with shares up about 21% in the last year, as of writing. Furthermore, dividends have grown at a rapid rate, with the current compound annual growth rate (CAGR) for the last decade at 5.4%.

How much you could earn

Let’s say you wanted to invest $5,000 in GWO stock. You then left it alone, watching dividends climb over the next five years. Based on its CAGR, here is what your passive income could look like, not counting returns.

At the end of five years, you could be making passive income from dividends alone of $339.24! And if you haven’t touched your passive income, that’s total income from dividends of $1,529.88 on top of your original $5,000 investment, without adding another penny.

The post Copy of This Dividend Aristocrat Could Be the Only Stock You Need for Passive Income appeared first on The Motley Fool Canada.

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• If You Love Deals, This Dividend Payer Could Be Just the Ticket

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.