MFC:CC - 3 Roaring Stocks to Hold for the Next 20 Years

2024-07-10 20:30:00 ET

Canadian investors might look at some of the climbing stocks of the last year or so and wonder if the climbing time has come and gone. But in the case of these three TSX stocks, it’s likely only getting started. So with that, let’s get into why investors should consider not just buying, but holding these three stocks for the next two decades.

Cameco

First we have Cameco ( TSX:CCO ), one of the world’s largest publicly traded uranium companies. With the global shift towards clean energy , nuclear power is expected to play a crucial role due to its low carbon emissions and consistent power generation capabilities. This positions Cameco advantageously for future growth as demand for nuclear fuel increases.

Cameco has demonstrated solid financial performance, with strong cash flow generation and a positive revenue outlook for 2024 and beyond. The company is strategically focused on long-term contracting to maintain exposure to higher prices, which is a prudent risk management strategy.

What’s more, Cameco’s investments span the entire nuclear fuel cycle, from mining to reactor fuel supply. This comprehensive involvement provides a strategic advantage, allowing the company to capture value at multiple stages of the nuclear fuel production process.

Furthermore, the company has a large and growing pipeline of business opportunities under discussion. This potential for future contracts and expansions suggests that Cameco is well-positioned to capitalize on increasing demand for nuclear energy. So even with shares up 61% in the last year, there is certainly more to come.

Manulife

Next we have Manulife Financial ( TSX:MFC ), a strong long-term investment for several reasons. Manulife has shown consistent financial strength, with solid earnings and a positive outlook for growth. The company’s market capitalization stands at approximately $66.3 billion, with a price-to-earnings (P/E) ratio of 16.2 and a dividend yield of 4.3%, making it an attractive option for income-focused investors.

Manulife’s strategic expansion into international markets, particularly in Asia, positions it for significant growth. The company’s diversified operations across Canada, the United States, and Asia help mitigate regional risks and capitalize on global opportunities. This diversification is crucial for long-term stability and growth.

When it comes to cash flow, Manulife is a leading dividend payer with a sustainable payout ratio of 70.2%. The company’s ability to maintain and potentially grow its dividend makes it an appealing choice for investors looking for steady income over the long term.

Topicus

Finally, for those looking for returns and then some, consider Topicus ( TSXV:TOI ). The company has a promising long-term outlook as well, primarily from its connection to Constellation Software ( TSX:CSU ).

Topicus benefits from the support of Constellation Software, a highly successful software company. This backing provides Topicus with additional resources, expertise, and credibility in the market. The relationship with Constellation Software enhances Topicus’s growth prospects and strategic positioning.

Yet on its own, Topicus has demonstrated significant growth, with shares increasing by 51% in the past year. This upward trajectory suggests that the company is well-positioned to continue its growth trend. Analysts have noted that Topicus has much room for further growth, making it an attractive option for long-term investors.

Operating primarily in Europe, Topicus serves diverse markets, offering software solutions that enhance efficiency and business value for customers. Plus, it has shown robust financial performance, with consistent earnings growth. Altogether, even with shares up 20% in the last year, it’s a strong stock for a long-term hold.

The post 3 Roaring Stocks to Hold for the Next 20 Years appeared first on The Motley Fool Canada .

Fool contributor Amy Legate-Wolfe has positions in Topicus.com. The Motley Fool has positions in and recommends Topicus.com. The Motley Fool recommends Cameco and Constellation Software. The Motley Fool has a disclosure policy .

2024