Many avoid investing in stocks mainly because of the volatility. But you should know that when you are investing for the long term, probably for more than a year, the volatility risk gets diversified. That’s why they call volatility a long-term investors’ friend. Here are three TSX stocks that you can consider investing in for the longer term.
Nuvei
One of the top fintech stocks Nuvei (TSX:NVEI) has almost doubled in the last six months. Its expanding customer base and a large addressable market notably boosted its earnings for the last couple of quarters.
Though there are many payment-processing companies out there, Nuvei has a competitive advantage in the sports wagering space. Right now, some U.S. states have legalized sports betting, which has already opened a big market for Nuvei.
A $12 billion company is aggressively expanding its footprint south of the border. In April 2021, Nuvei announced the acquisition of Mazooma Technical Services, a U.S.-focused sports betting payment platform provider.
Nuvei already operates in 200 markets internationally with 150 currencies and backs more than 450 payment methods.
NVEI stock is currently trading at $87, close to its all-time highs. Considering the market opportunity, I think the stock still has significant steam left for long-term investors.
Enbridge
After a growth stock, let’s take a look at a relatively stable, dividend-paying stock Enbridge (TSX:ENB)(NYSE:ENB).
Enbridge offers one of the most superior dividend profiles on the TSX today. It yields 7.2% at the moment — way higher than TSX stocks’ average. A $100 investment in ENB stock would make around $7.2 per share in dividends per year.
Also, Enbridge has increased its dividends for the last 26 consecutive years. A superior yield, long payment history, and payout visibility for the future make ENB one of the best dividend stocks in Canada.
Despite being in a volatile energy sector, Enbridge generates stable cash flows. Its irreplaceable network of energy pipelines offers earnings and dividend stability.
ENB stock has soared 12% in the last 12 months, lagging the TSX stocks at large. However, it has significantly outperformed broader markets in the long term, including dividends.
Premium Brands Holdings
A leading food-processing stock Premium Brands Holdings (TSX:PBH) is my third pick. It is a $5 billion company that owns popular brands like Deli Chef, Harvest Meats, Piller’s, Freybe, and Expresco.
Premium Brands recently completed acquisitions of Allseas Fisheries and Starboard Seafood. The company also has a 50% interest in Clearwater Seafoods.
Premium Brands has seen superior financial growth in the last decade, which was reflected in its stock performance. It returned 30% compounded annually, thrashing the TSX Composite Index. If you invested $10,000 in PBH stock a decade back, you would be sitting on $138,000 today.
Premium Brands’s premium food distribution segment could see even higher demand post-pandemic. Its strong balance sheet could continue to drive growth by acquisitions as well. Re-opening hopes and higher quarterly earnings could drive open further upside for PBH stock.
