Growth-seeking investors found plenty of excellent investment opportunities last year amid the chaos and confusion created by the pandemic. The share prices for several high-quality companies declined to give value-seeking investors the chance to buy big names on the stock market for a bargain.
The changing global landscape also resulted in multiple operators in the Canadian tech sector getting the necessary room to deliver stellar shareholder returns. Investors who bought shares of Canadian growth stocks in 2020 saw massive wealth growth as tech companies continued to perform well.
As the S&P/TSX Composite Index continues to soar near new all-time highs in 2021, fears of inflation and the threat of rising COVID-19 cases causing dents in the economic recovery are growing. It might make sense to consider investing in assets that can provide your portfolio with stability during volatile market conditions and substantial long-term returns.
If you have $1,000 to invest today and are wondering where to allocate the capital, today I will discuss two buy-and-hold assets that could be ideal for your investment portfolio today.
TransAlta Renewables
TransAlta Renewables (TSX:RNW) is my first pick for TSX stocks that you should buy and hold for a long time. The company owns and operates over 45 power-generating facilities with a total capacity of around 2.8 gigawatts. TransAlta Renewables offers investors exposure to the growing renewable energy industry. The company relies on long-term contracts to generate revenues, allowing it to earn predictable cash flows.
TransAlta Renewables has also been busy making strategic acquisitions to fuel its growth. Over the last eight years, the company has spent $3.4 billion in acquisition deals to boost its power generation capacity further. The company is also benefitting from the gradual shift to renewable energy and is well-positioned to deliver substantial returns through capital gains as the demand for its services booms in the coming years.
Trading for $20.12 per share at writing, TransAlta Renewables stock boasts a juicy 4.67% dividend yield that can provide you with consistent returns for a long time.
Telus
Telus (TSX:T)(NYSE:TU) is my second pick for a TSX stock to buy and hold forever. The telecom sector has become integral to our lives because it provides services that are essential in every aspect of our lives. When economic conditions deteriorate, people are unlikely to cancel their subscription to services offered by Telus and its peers to cut costs, which means the telecom giant can continue generating consistent returns.
The company recently released its second-quarter earnings report and all numbers point in its favour. Telus has added over 200,000 new customers to expand its customer base to 16.3 million in the last four quarters alone. The increasing expansion of its 5G infrastructure and its PureFibre services are helping the company acquire more customers. As 5G technology becomes more commonplace, Telus stock could continue to soar.
Trading for $28.41 per share at writing, Telus stock is up by 11.67% on a year-to-date basis and boasts a juicy 4.45% dividend yield.
Foolish takeaway
If you have a lot of money that you can invest right now, it makes sense if you would want to allocate it to assets that can deliver explosive growth. However, practicing a little caution today by focusing on investments that offer stability in volatile markets and substantial long-term growth potential might prove to be a better play in the current market environment.
As the world phases out coal and other fossil fuels, the renewables industry is expected to grow rapidly in the coming decades. The advent of 5G technology is slated to catalyze booming growth in the telecom sector.
TransAlta Renewables stock and Telus stock could be ideal investments to consider to take advantage of these industry trends.
