Yahoo Finance Got $2,500? 2 Top Stocks You Can Buy and Hold for a Lifetime
Written by Demetris Afxentiou at The Motley Fool Canada
Finding stocks that you can buy and hold for a lifetime is one of the goals of every investor. Fortunately, there’s no shortage of great investments to help meet that goal.
Here’s a look at two great stocks that both new and seasoned investors alike can buy and hold for a lifetime.
This is a wow stock
The best stocks to buy for long-term growth are those that you can buy today and forget about for a decade or more. Even better is if you can start that investment off with just $2,500.
Enter Fortis (TSX:FTS). Fortis is a utility stock boasting an impressive suite of facilities located across the U.S., Canada, and the Caribbean.
Fortis generates a reliable income stream thanks to its lucrative business model. In short, Fortis’ facilities are bound by long-term regulated contracts that span decades in duration.
And for as long as Fortis provides that utility service, the company generates a recurring revenue stream. And it’s that predictable revenue stream that allows the company to realize growth and pay out a handsome dividend.
As of the time of writing, that dividend works out to an appetizing 4.5%. Prospective investors can take solace in one more key point.
Fortis has provided an annual uptick to that dividend for 50 consecutive years. In other words, investors who aren’t ready to draw on that income yet can choose to reinvest it until needed.
This allows any eventual income to continue to grow on autopilot. That fact alone makes Fortis a superb pick for those looking to buy and hold for a lifetime.
Buy and hold for a lifetime
Another great stock for those investors looking to buy and hold for a lifetime is RioCan Real Estate (TSX:REI.UN).
RIoCan is one if the largest REITs in Canada, with a portfolio of nearly 190 properties. Those properties are located primarily across Canada’s major metro areas.
Historically, those properties have comprised commercial retail sites. In recent years, that mix has changed to include a growing number of mixed-use residential properties.
And that is where an opportunity is emerging for prospective investors of RioCan to buy and hold for a lifetime.
Those mixed-use properties consist of residential towers that sit atop several floors of retail. The properties are located in high-traffic transit corridors in Canada’s major metro areas.
In other words, they are in high-demand areas and cater to the growing number of would-be landlords priced out of the market.
And perhaps best of all, higher down-payment requirements and surging interest rates are of no concern here.
Investors can even take solace in collecting a monthly distribution, much like a landlord collecting rent.
As of the time of writing, RioCan offers an attractive 6.5% yield. This means that investors who have just $2,500 to invest will have an opportunity to grow their portfolio through reinvestment. Again, it’s about being able to buy and hold for a lifetime!
Final thoughts
No investment, even the most defensive is without some risk. That includes otherwise defensive options like Fortis and RioCan.
In my opinion, one or both stocks are stellar options to buy and hold for a lifetime and should be core holdings in any well-diversified portfolio.
Buy them, hold them, and watch your portfolio grow.
The post Got $2,500? 2 Top Stocks You Can Buy and Hold for a Lifetime appeared first on The Motley Fool Canada.
Should you invest $1,000 in Fortis right now?
Before you buy stock in Fortis, consider this:
The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Fortis wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.
Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $16,110.59!*
Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.
See the 10 stocks * Returns as of 6/20/24
More reading
Can You Guess the 10 Most Popular Canadian Stocks? (If You Own Them, You Might Be Losing Out.)
How to Build a Bulletproof Monthly Passive-Income Portfolio in 2024 With Just $25,000
Fool contributor Demetris Afxentiou has positions in Fortis. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.
2024
