Saving your money and investing in the stock market is undoubtedly one of the best ways to allow yourself to retire early. However, you can’t just find any Canadian stocks to buy and assume you’ll perform well.
Furthermore, investing requires a long-term commitment, patience, and discipline. It will be extremely difficult to try and retire early by constantly buying and selling stocks or attempting to time the market.
You’re far better off finding high-quality stocks that will perform well for decades. And when you find these Canadian stocks trading at a fair value or even sometimes undervalued, they are the best investments to make.
So if you’re looking to retire as early as possible, here are two top Canadian stocks to buy now.
One of the best Canadian stocks you can buy for the long haul
Because we are investing for the long run, we’re obviously looking for companies that can perform for decades. But just as important is to make sure the management team keeps a long-term outlook.
With companies reporting earnings quarterly and many eyes on management, it’s not uncommon to find businesses making decisions that will benefit them in the short run and make earnings look good today, but that may not be the most optimal long-term decisions.
So finding a high-quality management team with a long-term outlook is crucial. That’s why Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP) is one of the best Canadian stocks to buy now.
Brookfield has an exceptional portfolio of highly defensive infrastructure assets diversified all over the world. This makes the company one of the best and most unique stocks to buy in Canada. But because its management always keeps a long-term outlook and is constantly aiming to increase the dividend each year, it’s a company you can count on to own long-term.
As I mentioned above, these infrastructure assets are highly defensive, so you have the comfort of knowing this is a high-quality business with resilient operations. But Brookfield’s strategy to consistently upgrade these infrastructure assets, improve their yield and sell them at a higher price, and then recycle the cash into new investments makes Brookfield one of the best Canadian stocks to buy.
In this environment, with so much uncertainty and traditional growth stocks out of favour, Brookfield is a perfect stock to protect your portfolio. It can even potentially benefit from inflation, while many other stocks are being negatively impacted by rising costs.
So if you’re looking for some of the best Canadian stocks to buy that you can hold for years and will help you to retire early, Brookfield is one of the first I’d consider.
A top Canadian energy company
In addition to Brookfield, in today’s environment, some of the best Canadian stocks to buy are energy companies. That’s why I’d consider Freehold Royalties (TSX:FRU) one of the best investments you can make if you’re looking to retire early.
Freehold is a stock that earns royalty payments from the energy that’s produced on the land it owns. It’s a lower-risk energy stock that even has very little debt. Despite this low risk, though, Freehold still has a tonne of upside potential, which is why it’s one of the best Canadian stocks to buy now.
However, Freehold’s upside potential in the share price is one thing, but the fact that it pays a highly safe dividend that currently yields upwards of 6.4% is what makes it so compelling today.
The stock has seen a massive rally over the last year. But with the tailwinds the energy sector has that look to be in place for some time, Freehold, as well as other top Canadian energy stocks, are some of the best investments to buy now.
