Fortunately, the market gives us plenty of great options to help achieve that goal.
Here’s a look at four great stocks that will not only boost your long-term portfolio, but kick it into high gear.
Stock #1: The Defensive Core
As with the formation of a sports team, individual investments in a long-term portfolio must play a specific role. One of these is the defensive core. This is the stock that offers tremendous defensive appeal to offset market volatility.
It’s also the only choice that will continue to provide a solid anchor for growth and income no matter how the market fares.
That’s true Fortis (TSX:FTS) comes into view. Fortis is one of the largest utilities on the market. The company operates in ten operating regions, including parts of Canada, the US and several Caribbean countries.
Utilities like Fortis generate a recurring revenue stream that is both stable and growing. Part of the reason for this is due to the regulated long-term contracts that underpin utilities’ business models.
This stable income stream leaves room for growth, investments and dividend payments.
In the case of Fortis, the company’s quarterly dividend offers a 4.37% yield and an incredible streak of 51 consecutive years of annual increases.
This makes it a solid start for any long-term portfolio.
Stock #2: A stock that serves both growth and income goals
It would be difficult to name some of the best long-term portfolios to buy without noting the appeal of Canada’s big bank stocks. Bank of Montreal (TSX:BMO) is notably the one major bank that should be on investors’ radar.
BMO has been paying dividends for much longer than its peers. In fact, it has amassed nearly two centuries of continuous payments. Today, that yield stands at 3.52%, making it an excellent option for any long-term portfolio.
In addition to this income-attractive advantage, there are two additional advantages.
First, BMO has been providing annual increases to that dividend for more than a decade. This means buy-and-forget investors looking to build a long-term portfolio can now invest in bank stocks and watch the gains compound.
Second, BMO is not just an income investment. The bank also focuses on growth investors. In recent years, BMO has expanded its presence in the US market to 32 states. This provides the bank with a source of long-term growth for investors.
Stock #3: Still defensive, but focused on income
A third good choice for investors who want to build a long-term portfolio is Zoncor (TSX:SU). Suncor is one of the largest integrated energy companies on the continent.
Suncor is unique among its energy peers for a number of reasons.
As an integrated energy producer, Suncor is involved in all aspects of the energy cycle. The company engages in exploration, produces oil from its massive oil sands operation, refines this oil and even has a customer-facing division to sell its products.
This gives Suncor several cost advantages compared to non-integrated competitors. It also means Suncor is more defensive and less sensitive to market shifts.
On the earnings side, Suncor offers a quarterly dividend that boasts years of annual increases. At the time of writing, the yield on that dividend is 3.47%.
Stock #4: Full growth
One final stock that investors may want to consider looking at in a long-term portfolio is Dollarama (TSX:DOL). Dollarama is Canada’s largest operator of dollar stores, with locations in every province.
Despite these strong results, demand for the company’s unique products, which are priced at a fixed level, continues to drive growth. This in turn fuels store growth, and by extension, Dollarama’s stock price.
In fact, the stock has grown more than 280% over the past five years.
Dollarama’s incredible growth is not limited to Canada. The company also enjoys a growing presence in several Latin American countries under the Dollarcity brand, and Dollarama also recently expanded into Australia.
Build your long-term portfolio
No share is without risk. The four stocks mentioned above offer defensive appeal, growth and income-generating potential, making them solid additions to any long-term portfolio.
Buy them, hold them and watch your portfolio grow.
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