Top 4 Canadian Stocks to Invest in for Long-Term Growth
Investing in Canadian stocks for long-term growth can yield significant benefits. High-quality companies help minimize transaction activity and provide stability. Here are four stocks to consider for your portfolio over the upcoming decade.
Fortis: A Reliable Utility Stock
Fortis (TSX:FTS) stands out as a top utility stock for those prioritizing safety and longevity. While it may not be the fastest-growing company, it offers a stable dividend and reduces overall portfolio volatility. Over the past ten years, Fortis has delivered high-single-digit returns, including dividends.
With nine transmission and distribution utilities across North America, Fortis has a predictable business model. The company targets a 7% annual rate-base growth over the next five years, which should lead to 4-6% annual dividend growth. Its 52-year track record of consecutively increasing dividends suggests it will continue this trend.
Descartes Systems Group: A Software Stock to Watch
For those seeking growth, Descartes Systems Group (TSX:DSG) is worth consideration. Despite facing a 27% decline over the past year, the company benefits from its essential role in the global supply chain through its Global Logistics Network. This software stock is positioned to capitalize on AI developments.
Descartes generates high recurring revenues and maintains strong profit margins, making it resilient amid economic turmoil. Analysts predict it can achieve low to mid-teen growth rates for the foreseeable future, aided by its cash-rich balance sheet.
WSP Global: A Leading Consulting Firm
WSP Global (TSX:WSP) is a major player in engineering and advisory services globally. The firm is set to expand significantly after acquiring TRC, positioning itself as the largest engineering firm. WSP is aligned with key global trends such as urbanization, climate change, and the data/AI revolution.
With a backlog valued at $16 billion, WSP continues to diversify its services. Despite a 4% decline over the past six months, this offers a strategic entry point for investors looking to add to their portfolios.
VitalHub: A Promising Small-Cap Stock
VitalHub (TSX:VHI) is an intriguing option for long-term investors. It has seen a 24% drop in stock value over the past year and a 30% decrease in the last six months. However, it has shown potential with a 172% increase over the past five years.
VitalHub specializes in healthcare software across Canada, the U.K., Australia, and the Middle East, bolstered by smart acquisitions. With over $100 million in cash reserves, it is positioned for further growth and may present a valuable buying opportunity after its recent pullback.
Conclusion
These four Canadian stocks — Fortis, Descartes Systems Group, WSP Global, and VitalHub — offer a mix of stability and growth potential for long-term investors. By incorporating them into your portfolio, you can navigate market fluctuations while positioning for future success.
