There’s no shortage of great stocks on the market. Even better, some of those great stocks now trade at discounted levels. This makes them stellar picks to buy and hold for a lifetime.
But which stocks should investors consider right now? Here’s a duo of top stocks to buy and hold for a lifetime right now starting at just $2,500.
Let’s start with one of the big banks
There’s a reason why investors often gravitate toward Canada’s big banks. They offer stable domestic segments, pay handsome dividends, and offer immense growth from international markets.
But which bank should you consider for your portfolio?
In my opinion, that would be Bank of Nova Scotia (TSX:BNS). Scotiabank isn’t the largest of the big banks, but it does offer a few unique differences that its peers lack.
When it comes to international growth, the big banks tend to focus on the U.S. market. This is an area where Scotiabank decided to move away from its peers and look further south for growth.
Specifically, Scotiabank established branch networks in the Latin American nations of Mexico, Columbia, Peru, and Chile. Those four nations are part of a trade bloc known as the Pacific Alliance.
The Alliance is tasked with improving trade between its members and eliminating tariffs. The fact that Scotiabank operates within all four member states has resulted in it becoming a preferred lender in the region. That preference has led to substantial growth of Scotiabank’s international banking segment.
Not only does this provide a growing source of revenue, but also provides some defensive diversification outside of the sphere of the U.S. and Canadian markets.
Turning to income, Scotiabank really begins to shine. The bank offers a quarterly dividend that has a yield of 5.65%, making it the highest among its big bank peers. Scotiabank has also provided annual upticks to that dividend for decades, with the only recent gap being during the pandemic.
Purchasing $2,500 worth of Scotiabank now will get 34 shares of the bank.
Also, keep in mind that at current prices the reinvested dividends on that initial outlay are enough to add two shares (or more) every year to your portfolio.
This makes it a great option to buy and hold for a lifetime.
How about something even more defensive?
It’s hard to not think about the defensive appeal of a utility when considering stocks to buy and hold for a lifetime. One such option that should be on the radar of all investors is Fortis (TSX:FTS).
Fortis is one of the largest utilities on the continent. The company boasts 10 operating regions that includes parts of Canada, the U.S., and the Caribbean. In short, the $60 billion behemoth is a must-have for any investor looking for a stock to buy and hold for a lifetime.
What makes utilities great investments comes down to the lucrative business model they adhere to. In short, utilities are bound by long-term regulatory contracts that often span decades. For as long as the utility continues to provide service, it gets paid a recurring and stable source of revenue.
That revenue stream is then used to invest in growth and then passed on to investors in the form of a dividend. In the case of Fortis, that dividend works out to an appetizing 4.05%.
It may not be the most exciting stock, but it does provide a consistent, and stable source of income, and it continues to grow. In fact, Fortis has provided annual upticks to that dividend for a whopping 49 consecutive years.
This means that (at current prices) an initial $2,500 investment works out to 45 shares of the utility. And like Scotiabank, the reinvested dividends from Fortis will quickly add to your long-term nest egg over time.
This makes Fortis a superb option to buy and hold for a lifetime.
Can you really buy and hold for a lifetime?
One of the great things about stocks that you can buy and hold for a lifetime is the often omitted “forget” part.
In short, buy one or both of these stocks today as part of a long-term well-diversified portfolio, and let them grow on autopilot for decades.