3 Stocks to Hold for the Next Decade

There are so many great companies. Which three stocks should you hold for the next decade?

The Canadian stock market possesses many companies that are more than worthy of being in your portfolio. However, it’s impossible to hold all these companies. So, at some point, investors will need to decide which ones to hold. In this article, I will discuss three top stocks to hold for the next decade.

This company is leading the retail revolution

One of today’s biggest secular trends is the adoption of online commerce. Consumers have slowly been increasing their online spending over the past decade. However, last year marked a significant increase in spending among online retailers. This was due in large part to the pandemic causing governments around the world to impose stay-at-home and business shutdown restrictions. Shopify (TSX:SHOP)(NYSE:SHOP) was a major player in helping businesses offer online retail solutions.

Today, more than 1.1 million merchants around the world choose Shopify to operate their online stores. Because of its sticky platform, Shopify has managed to see impressive revenue growth each and every year. From 2019 to 2020, the company reported an 86% increase in its total revenue. In its latest earnings report, Shopify announced a 110% year-over-year increase in its Q1 revenue. Some investors are worried that Shopify’s best days are behind it. However, the numbers tell a completely different story.

Digital payments are becoming essential

Similar to the increasing dependence on online retail, consumers and businesses alike are increasingly relying on digital payment solutions. These services allow us to transact payments using different methods from anywhere in the world. Nuvei (TSX:NVEI) is Canada’s leading digital payments provider. The company made major headlines in September when it closed the largest tech IPO in Canadian history.

Over the past month a half, Nuvei has announced some major developments regarding its business. First, the company announced that it had been cleared to provide online sports betting and gaming services in Michigan. Second, the company announced that it had agreed to purchase Simplex, a fintech startup that provides a platform for cryptocurrency transactions. In Nuvei’s prospectus, the company announced that it would be dedicated to innovation. These recent developments imply that the company has been true to its word.

A reliable industry in Canada

When it comes to investing in Canada, there are so few industries that investors can turn to and expect reliable returns. The Canadian banking industry is a prime example. The Big Five banks are all excellent companies to hold in your portfolio, because of their staggering position within the country. Of the Big Five, Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) stands as the best choice.

Although its peers do have an international presence, they tend to focus primarily on the United States. In contrast, Bank of Nova Scotia is heavily exposed to the Pacific Alliance region. This is an area in Latin America that economists are forecasting will grow at much quicker rates than the G7 over the next few years. If Bank of Nova Scotia is able to capture a sizeable market in those countries, investors could see impressive returns.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Jed Lloren owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends BANK OF NOVA SCOTIA and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.

More on Dividend Stocks

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is CNR Stock a Buy, Sell, or Hold for 2025?

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

These top dividend stocks both offer attractive yields and trade off their highs, making them two of the best to…

Read more »

Middle aged man drinks coffee
Dividend Stocks

Here’s the Average TFSA Balance at Age 35 in Canada

At age 35, it might not seem like you need to be thinking about your future cash flow. But ideally,…

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

How to Invest Your $7,000 TFSA Contribution in 2024

Here's how I would prioritize a $7,000 TFSA contribution for growth and income.

Read more »

a man relaxes with his feet on a pile of books
Dividend Stocks

CPP Pensioners: Watch for These Important Updates

The CPP is an excellent tool for retirees, but be sure to stay on top of important updates like these.

Read more »

Technology
Dividend Stocks

TFSA Investors: 3 Dividend Stocks I’d Buy and Hold Forever

These TSX dividend stocks are likely to help TFSA investors earn steady and growing passive income for decades.

Read more »

four people hold happy emoji masks
Dividend Stocks

Love Dividend Growth? Check Out These 2 Income-Boosting Stocks

National Bank of Canada (TSX:NA) and another Canadian dividend-growth stock are looking like a bargain going into December 2024.

Read more »

An investor uses a tablet
Dividend Stocks

A Dividend Giant I’d Buy Over Enbridge Stock Right Now

Enbridge stock may seem like the best of the best in terms of dividends, but honestly this one is far…

Read more »