Furthermore, it can be even more difficult to find companies that have shown consistency and the ability to continue to perform for a very long time.
That said, after following so many Canadian stocks for so long, I have a pretty good idea of the two names I’d put in this bucket. Here are my top two “forever” stocks that I would consider holding and never selling.
Fortis
What’s interesting about the Canadian utility giant? Fortis (TSX:FTS) is that this company is a so-called forever stock that I would say has some of the strongest short-term catalysts of any Canadian name.
That’s because we’re about to see energy demand absolutely skyrocket from here. With the rise of AI, machine learning, autonomous vehicles and so many other megatrends on the horizon, we are already seeing an uptick in investors looking to capitalize on the rise of these very strong trends.
The point is that even if the AI euphoria subsides, Fortis’ core residential and commercial customer base is unlikely to turn off their lights or heat anytime soon. Fortis’s business model therefore has a strong defensive character that should not be overlooked.
And from a dividend perspective, the company’s five-decade streak of distribution increases is impressive. Those looking for substantial long-term total returns can’t go wrong owning this name. At least that’s my opinion.
Restaurant brands
Another top Canadian stock that I’ve kept harping on because it’s a long-term defensive position Restaurant brands (TSX:QSR).
The company, the parent company of Tim Horton’s, Popeye’s, Burger King and a number of other profitable and growing fast food brands, has enjoyed solid growth in the past, which has slowed somewhat recently.
Much has been made about the rise of GLP-1 drugs, and how they could impact the company’s future profits. The point is that recent quarters have seen robust revenue growth. And as Restaurant Brands continues to expand globally, I think a two-pronged growth strategy (building new locations and growing same-store sales) could lead to the kind of upside potential investors are looking for.
With a robust dividend yield of its own and operating in one of the more defensive parts of the dining market (lots of upside trade-downs), there’s a lot to be said about the way QSR stock is positioned here. For those who think long term, I don’t understand why buying now and holding forever is a bad idea.
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