Although interest rates are nearing their peak, expectations remain that rates will stay higher for longer, causing many stocks to resume their sell-offs. Therefore, while this incredible opportunity to buy stocks for dirt-cheap lasts, it’s essential to find stocks you can hold long-term and take advantage of in this environment.
Even some of the highest-quality and most reliable stocks will see sell-offs in their prices as interest rates and bond yields rise.
Therefore, although there are plenty of high-risk, high-reward growth stocks trading cheaply, there are also plenty of reliable, core portfolio stocks that you can buy undervalued today and hold forever.
So if you’ve got cash you’re looking to invest today, here are two of the top Canadian stocks you can buy now and hold forever.
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A top defensive growth stock to buy now and hold forever
Buying defensive growth stocks to hold for the long haul is ideal because these stocks can be both reliable as well as grow your capital significantly over the years.
And one of the best defensive growth stocks to buy in Canada is Brookfield Infrastructure Partners (TSX:BIP.UN), especially while it trades just off its 52-week low.
Brookfield is a great investment because it owns tonnes of different essential infrastructure assets in countries all over the world. So its operations are diversified significantly, which helps to both reduce risk as well as create more opportunities for growth.
The stock owns assets in industries such as utilities, midstream energy, transportation, and the segment that’s now growing the fastest, data.
The fact that Brookfield owns such a diversified portfolio of essential assets is certainly one of the major reasons to buy the stock. But the fact it has such an impressive management team and is constantly looking for new ways to create value is why it’s one of the best stocks you can buy.
Brookfield is constantly working on improving the assets it owns to grow the cash flow they earn and improve their value.
It then will look to sell off some of these more mature assets at these higher valuations and recycle the capital into new assets that it finds are undervalued or have significant growth potential.
Therefore, while Brookfield trades just off its 52-week low and offers a yield of more than 4.9%, it’s certainly one of the best stocks in Canada to buy now and hold forever.
An ideal investment for passive income seekers
Another high-quality and reliable stock to buy, especially if you’re looking to boost your passive income, is Enbridge (TSX:ENB), the massive energy infrastructure stock.
Enbridge is an ideal business because it’s so large and has so many competitive advantages, so it’s constantly growing its operations and, consequently, the money it has to distribute to shareholders.
Enbridge is so big that its operations are critical to the North American economy. The stock not only transports roughly 30% of the crude oil produced in North America, it also transports roughly 20% of all the gas consumed in the United States. And those are just its pipeline businesses.
Therefore, considering the massive barriers to entry in the space and the fact that it owns many long-life assets, as well as Enbridge’s size and importance in the North American economy, it’s an ideal dividend stock to buy now and hold forever.
Not only does it offer an unbelievable dividend yield of roughly 7.75% today, but that dividend has been increased every year for over a quarter century now.
Plus, with the stock trading slightly below $46, not only is it just off its 52-week low, but it values Enbridge at just 16.5 times its forward earnings. That’s considerably lower than its 10-year average of 20.6 times its forward earnings.
Therefore, if you’re looking for high-quality stocks to buy undervalued today that you can hold for years to come, Enbridge is certainly one of the top choices to consider.
