I assume the perspective of a very long-term investor with an investment horizon of twenty years. For those looking to put capital to work in the Canadian stock market over the next twenty years and identify some total return growth stocks in this market to pursue, here are two that I would definitely recommend at least thinking about now.
Restaurant brands
In this current economic climate, I think balance sheet strength and defensive characteristics are two of the most important factors that many investors may ignore at their peril. Restaurant brands (TSX:QSR) is a company that reflects both.
Restaurant Brands, the parent company of Tim Hortons, Burger King and a host of other world-class fast-food banners, benefits not only from steady demand from its core base, but also from continued expansion in key global markets where the company’s banners are not as well known.
As the company sees greater adoption globally, I think overall same-store growth rates should improve. And in key North American markets, Restaurant Brands’ menu refreshes and other sales-boosting initiatives have done just that.
With a solid dividend yield of 3.6% and one of the best balance sheets among its peers, there’s a lot to be said about the long-term direction of QSR stock. This is hands down one of the best long-term picks that I think investors can pursue with confidence (and sleep well at night) right now.
Fortis
Fortis (TSX:FTS) might be the stock I’ve been beating the most in recent years, perhaps next to Restaurant Brands. As the chart below shows, this vision has certainly paid off, with strong performance over the past five years, driven by a number of trends.
More recently, attention has focused on the rise of artificial intelligence, with energy demand expected to explode. I don’t think the analysts and market participants who estimate such trends are wrong at all. In fact, this will likely be a key factor driving continued interest in the utility sector as a whole.
That said, with a primary focus on the Canadian market, I’d say Fortis has largely flown under the radar for most investors. This is a company with a very strong market share in its key regulated markets, and often acts as the sole provider of utility services in these areas.
That’s a defensive profile I like. Combined with the fact that the majority of the company’s revenue is generated through long-term regulated contracts, Fortis’s cash flow growth profile should be about as robust as it can get. This could allow the company’s five-decade dividend growth streak to stretch to seven decades. That’s my view anyway.
#Screaming #Buy #TSX #Stocks #Hold #Years