CM:CC - Got $100? 2 Top Canadian Stocks to Buy and Hold
2024-04-16 21:45:00 ET
There are some really great top Canadian stocks available to buy and hold right now. Even better, some of those stocks can be purchased at a discount, often for under $100.
Here are two top Canadian stocks that investors will want to buy now and hold for decades.
It’s hard to not consider buying this stock
The first of two top Canadian stocks to buy and hold right now is Enbridge ( TSX:ENB ). Enbridge is the well-known energy infrastructure behemoth that is arguably one of the most defensive picks on the market.
A big reason for that view is Enbridge’s massive pipeline network, which comprises both natural gas and crude segments. Collectively, that pipeline network is the largest and most complex system on the planet. It also generates the bulk of Enbridge’s revenue thanks to the massive volumes hauled.
Specifically, that pipeline network is responsible for transporting nearly one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S. market. Suffice to say that Enbridge’s pipeline network is a massive defensive moat.
As intriguing as that sounds, there’s still more to like about Enbridge, such as its growing renewable energy portfolio.
Enbridge has invested over $9 billion into the segment over the past two decades. Today that portfolio comprises over 40 facilities located across both North America and Europe. Additionally, prospective investors should note those facilities generate a recurring and stable revenue stream, backed by regulated contracts.
And speaking of regulated contracts, Enbridge also operates the largest natural gas utility in North America. In total, Enbridge boasts 7 million natural gas customers, which blanket parts of the U.S. and Canada.
Collectively, those segments provide a recurring revenue stream that allows for both growth and a juicy dividend . As of the time of writing, that dividend works out to a juicy 7.87% yield.
This means that a $20,000 position in Enbridge will generate an income of just shy of $1,600.
Perhaps best of all, Enbridge trades just under $46, making it one of the top Canadian stocks to buy and hold for under $100.
Growth and income will fuel your portfolio for decades
It would be near-impossible to mention the top Canadian stocks to buy and hold without mentioning at least one of Canada’s big banks .
Canadian Imperial Bank of Commerce ( TSX:CM ) is the bank for those investors who want to generate decades of income and growth.
CIBC isn’t the largest of Canada’s big banks. In fact, it’s one of the smaller of the big banks and has a smaller international footprint over its peers. That larger domestic mortgage book has translated into a more volatile ride over the past two years as interest rates began to rise.
Specifically, CIBC trades down over 10% over the trailing two-year period. As of the time of writing, CIBC trades just below $65 per share, handily making it a great option for any sub-$100 stocks to buy and hold.
With much of that market volatility passing, CIBC’s stock is now on the rise. In the past six months, the stock has shot up an incredible 34%.
One of the main reasons why investors love big bank stocks like CIBC is the dividend offered. In the case of CIBC, the bank offers a quarterly dividend that pays out an appetizing 5.48% yield.
CIBC has also provided investors with annual upticks to that dividend going back for years, and the bank has paid out dividends without fail for over 150 years.
In short, CIBC is one of the top Canadian stocks you can buy and hold for decades.
Buy these top Canadian stocks today, sit on them for decades
Enbridge and CIBC offer investors a reliable revenue stream, growth potential and growing dividends. The fact that investors can pick up both for under $100 makes them ideal candidates for investors still building their portfolios.
In my opinion, one or both stocks should be core positions in any well-diversified portfolio.
The post Got $100? 2 Top Canadian Stocks to Buy and Hold appeared first on The Motley Fool Canada .
Fool contributor Demetris Afxentiou has positions in Enbridge. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy .
2024