JWEL:CC - Top TSX Stocks to Buy and Hold for the Long Term
2023-05-16 16:45:00 ET
Many investors tend to continuously look for the newest or hottest stocks to buy to grow their portfolios as quickly and efficiently as possible. However, although it’s always a good idea to keep up to date with the market and look for opportunities, finding the top stocks on the TSX to buy and holding them for the long term is almost always the best strategy.
Because of the uncertainty of markets and the difficulty in predicting which way the entire market might move, let alone individual stocks, it’s far easier to find high-quality businesses with years of growth potential and hold them through the ups and downs.
Furthermore, trying to trade stocks frequently is a lot more difficult to execute, but it can also become a lot more expensive due to the commission fees you need to pay each time you make a trade.
Therefore, the best and most efficient strategy for investing your hard-earned money is to buy top TSX stocks that you have the confidence to hold for years to come.
And right now, with so much uncertainty and volatility in the current market environment, this is the perfect opportunity for many investors to buy high-quality stocks while they trade at dirt-cheap prices.
If you have some cash you’re looking to invest, here are two top TSX stocks to buy now and hold for the long term.
One of the top defensive growth stocks to buy and hold long term
When looking for top TSX stocks to buy and hold for years, it’s essential to find companies that are high-quality, have years of potential and that you can trust, such as Brookfield Infrastructure Partners ( TSX:BIP.UN ).
We often focus on which stocks look attractive and have a tonne of growth potential, but it’s also just as important to have trust in these companies’ abilities to weather the storm when the market or economic environment worsens.
If you plan to hold stocks for the long term, it’s essential that when these circumstances materialize that you have the confidence to continue holding your stocks, as they temporarily lose value and even potentially add to your position.
Without a high level of confidence in your holdings, you could be inclined to sell your stocks in these environments when they are trading below their intrinsic value and undervalued — a time when you should actually be looking to buy more.
Therefore, it’s essential to find high-quality stocks that can grow well in bull markets and times of economic expansion but can also perform well and minimize risk when the economy is struggling, or the market is selling off.
That’s why Brookfield is a top TSX stock to buy for the long haul. It owns tonnes of essential infrastructure assets all over the world. Therefore, it’s well diversified, and its operations are highly defensive, making it an investment you can have confidence in no matter what the investing environment.
At the same time, though, Brookfield is constantly looking to recycle capital and find new investments to grow its operations, which is why it’s such an excellent long-term growth stock to own.
Plus, in addition to its defensive qualities and long-term capital gains potential, Brookfield also pays a dividend which currently has a yield of 4.3%, which the company aims to increase between 5% and 9% each year.
An impressive health and wellness company
Another top TSX stock to buy now and hold for years to come is Jamieson Wellness ( TSX:JWEL ).
Jamieson is another high-quality defensive growth stock that has years of potential but can also perform well when the economy is struggling.
Because the vitamins and minerals that it manufactures and sells are typically essential, and therefore because Jamieson is highly defensive, it’s a stock you can have confidence in.
Plus, it’s proven for years that it can continue to expand its business and increase value for shareholders. And with its expansion into China and its recent acquisition south of the border, it’s no surprise that analysts expect Jamieson will see its revenue increase by more than 25% this year after growing by more than 21% last year.
Therefore, if you’re looking for top TSX stocks to buy now and hold for years, defensive growth stocks like Jamieson are excellent choices.
The post Top TSX Stocks to Buy and Hold for the Long Term appeared first on The Motley Fool Canada .
Fool contributor Daniel Da Costa has positions in Brookfield Infrastructure Partners. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy .
2023