2 TSX stocks to buy & hold for 20 years

Highlights 

  • Investment strategies can be majorly classified under traditional, untraditional, conventional, and unconventional categories.
  • Stocks of Royal Bank of Canada (TSX:RY) could provide long-term gains to investors.
  • Among the oil and gas companies on the TSX, Enbridge is said to hold the highest dividend yield at the moment.

Investors keep looking for the best stocks listed on the Toronto Stock Exchange as it is one of the most prominent stock markets in Canada.

Investment strategies can be majorly classified under traditional, untraditional, conventional, and unconventional categories. In this article, we will talk about one of the traditional methods of investing – the buy-and-hold investment strategy.

                           

Top Two TSX Stocks To Hold for 20 years

 

When an investor opts for the above-mentioned investment strategy, it means that the investor plans to buy stocks or other forms of securities and hold them for a long period.

That said, we have shortlisted two TSX-listed stocks you can consider to buy and hold quite some time .

Royal Bank of Canada (TSX:RY)

With over 16 million clients and a robust balance sheet, the Royal Bank of Canada (RBC) remains a favourite among some investors.

Its daily average volume of shares traded was approximately 3.15 million in the last ten days. During the trading session on Friday, August 13, RY shares had achieved a 52-week high of C$ 131.59 and finally settled at C$ 131.08 apiece at market close.

1-year chart of stock performance, volume and moving average exponential of RBC (Source: Refinitiv)

The bank holds a market capitalization of over C$ 186 billion. RY shares have returned 25 per cent year-to-date (YTD).

Royal Bank is expected to release its financial results for the third fiscal  quarter on August 25. In the previous quarter, the RBC had posted a net income of C$ 4 billion, reflecting an increase of 171 per cent year-over-year (YoY).

As the economy rebounded from the COVID-19 pandemic, the bank had reduced its provision for credit losses (PCL) considerably in Q2 FY2021, down to C$ 260 million from C$ 2.1 billion in Q2 FY2020.

The lender pays a quarterly dividend of C$ 1.08 per piece. If the present restrictions on increasing the dividends are lifted, Royal Bank could hike its dividend in thefuture.

Also Read: 5 Canadian stocks paying the highest dividend in 2021

Enbridge Inc. (TSX:ENB)

Domiciled in Calgary, Enbridge is involved in the ferrying of crude oil and natural gas. The oil and gas distributor is also said to be looking at operations that are not harmful to the environment. 

As per the company’ website, Enbridge is aligned with the Canadian government's ambitious plans of building a sustainable and green economy. The oil and gas company claims that its assets are positioned to help the country become a low-carbon economy and reduce its own emissions at the same time.

ENB stock surged by about 13 per cent in the last twelve months. During the same period, shares of the energy company outperformed the S&P/TSX Oil & Gas sector that plunged by 4.6 per cent.

1-year chart of stock performance, volume and moving average exponential of Enbridge (Source: Refinitiv)

Compared to its 52-week high of C$ 50.41 per share, achieved on July 7 this year, ENB shares were trading 2.7 per cent lower at C$ 49.05 apiece on Friday.

Also Read: Hut 8 (HUT) & Mogo (MOGO): 2 TSX crypto stocks to buy in 2021

Among the oil and gas companies on the TSX, Enbridge is said to hold the highest dividend yield of 6.8 per cent at the moment.

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