Yahoo Finance Gen Z Investors: 3 Safe Stocks to Buy and Hold for 20 Years
Written by Amy Legate-Wolfe at The Motley Fool Canada
It may not sound all that exciting, but it’s proven time and again that the long-term method of holding stocks is not just the safest, but the easiest way to get rich. I say safest, because you can choose solid companies and hold them for decades. While you won’t see an overnight surge, you won’t see a crash either. And that leads to stable long-term growth.
Gen Z investors have time on their side. If you’re one of these investors looking to start now, you want safe stocks that you can hold for the next 20 years and never look back. You can simply reinvest dividends and see your portfolio climb higher and higher.
Furthermore, now is a great time! The market is down, and indeed could fall further. But again, you have time! So invest now in safe stocks like these, and watch the money pour in over the next two decades.
Canadian Utilities
Utility stocks are great investments because they offer long-term contracts that will see cash come in no matter what. We need the lights on, and companies like Canadian Utilities (TSX:CU) ensure that will continue to happen.
What’s more, utility stocks like this one are safe stocks to consider as we transition to renewable energy. Utilities are not only powered by gas, but by renewable methods like hydro as well. This provides you with a long-term investment you can feel good about.
Canadian Utilities stock is also the only Dividend King on the market as of writing. This means it has increased its dividend every year for the last 50 years. That’s several recessions it has come out the other side of, and increased its dividends in the meantime. You can pick it up with a yield of 4.88% as of writing.
TFI International
Another strong choice to consider is TFI International (TSX:TFII). Not only has TFI stock been around for decades, it’s expanding. The fleet management company continues to offer its services to companies across the United States and beyond, providing a cheaper option than owning your own fleet of vehicles.
While it doesn’t offer the largest dividend yield on the market at 1.2% as of writing, it still offers safety. Shares have climbed steadily for decades, and will continue to do so in a world in which consumers demand pretty much overnight deliveries of products.
Furthermore, TFI stock trades in value territory at 12.9 times earnings. Despite that, shares are actually up by about 17% in the last year as of writing! So you may get protection even during this downturn. But again, keep holding it for decades of growth.
CP stock
If you want further growth, I would definitely consider Canadian Pacific Railway (TSX:CP), a blue-chip company that’s just grown larger. The company finally received approval from the Surface Transportation Board in the U.S. for its merger with Kansas City Southern. It’s now the only single rail line that runs from Canada down to Mexico.
Further, there are very few overlaps for the two rail lines once combined. This provides even more revenue streams for CP stock once complete. Therefore, now is the absolute perfect time to get in on CP stock before it climbs even higher when the merge is finalized in April.
Again, dividends aren’t huge at 0.72%. That being said, once revenue starts rolling in you’re likely to see the company increase it once more. And with railway continuing to be one of the safest ways to ship products, you can be sure CP stock will be one of the safe stocks you’ll want in your portfolio for years.
The post Gen Z Investors: 3 Safe Stocks to Buy and Hold for 20 Years appeared first on The Motley Fool Canada.
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Fool contributor Amy Legate-Wolfe has positions in Canadian Pacific Railway. The Motley Fool recommends Canadian Pacific Railway. The Motley Fool has a disclosure policy.
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