2 Stocks to Buy Today and Hold Until You Retire

Are you looking for some great options to buy today and hold until you retire? Here are two options that boast huge income and growth potential.

| More on:
data analyze research

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn moresdf

There’s no shortage of great long-term income stocks on the market. Even better, the volatility that we’ve seen so far in 2022 makes it a great time to buy some stellar stocks. Additionally, many of those options you can buy today and hold until you retire decades from now.

Here are two great options to consider buying now.

Don’t miss this generational opportunity

Renewable energy represents one of the biggest long-term opportunities on the market today. That’s just part of the reason why TransAlta Renewables (TSX:RNW) should be a stock you buy today and hold until you retire.

TransAlta combines the defensive appeal of a traditional utility along with the immense potential of renewable energy investments. The company boasts a portfolio of over 20 facilities scattered across Canada, the U.S., and Australia.

Even better, those facilities include multiple types of renewable energy, such as wind, solar, and hydro.

Finally, like its fossil fuel-burning peers, TransAlta’s facilities are bound by long-term regulatory contracts. In fact, many of those contracts span well into the 2030s or even into the 2040s. This factor alone makes TransAlta a great long-term pick, but the company’s dividend is what should really excite investors.

TransAlta offers a juicy dividend that is paid out on a monthly cadence. The current yield works out to a yield of 5.31%, meaning that a $40,000 investment will earn a monthly income of $177.

Don’t stop yet: Bank on long-term income and growth

If you’re looking for a long-term stock to buy today and hold until you retire, you cannot ignore Canada’s big banks. The big banks are some of the best long-term options on the market. Not only do they offer solid growth, but also provide a handsome (and growing) quarterly dividend.

But which of the big banks belongs in your portfolio? At this point, Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is hard to ignore.

CIBC isn’t the largest of Canada’s big banks, nor does it have the growing U.S. presence of some of its most immediate larger peers. What it does boast, however, is the most attractive yield among its peers, and thanks to a stock split earlier this year, it trades at the lowest overall cost over its peers.

CIBC’s current yield is a juicy 4.90%, which means that the same $40,000 investment will earn a first-year income of $1,960. I say first-year income, because CIBC has an established precedent of providing annual upticks to that dividend. Investors opting to reinvest that income will also see huge bumps over the longer term as that nest egg grows.

That’s not even the best part. CIBC is trading down nearly 10% year to date and has a P/E of just 9.48. In other words, this big bank and long-term dividend gem currently trades at a good discount. This makes it an excellent option to buy today and hold until you retire.

Buy today and hold until you retire

There are plenty of benefits to investing early, but in order to realize those benefits, you need to do it! Fortunately, both options outlined above are great long-term picks that should form part of any well-diversified portfolio.

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 Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Dividend Stocks

growing plant shoots on stacked coins
Dividend Stocks

5 Dividend Stocks to Buy With Yields Upwards of 5%

These five companies all earn tonnes of cash flow, making them some of the best long-term dividend stocks you can…

Read more »

funds, money, nest egg
Dividend Stocks

TFSA Investors: 3 Stocks to Start Building an Influx of Passive Income

A TFSA is the ideal registered account for passive income, as it doesn't weigh down your tax bill, and any…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

3 of the Safest Dividend Stocks in Canada

Royal Bank of Canada stock is one of the safest TSX dividend stocks to buy. So is CT REIT and…

Read more »

Growing plant shoots on coins
Dividend Stocks

1 of the Top Canadian Growth Stocks to Buy in February 2023

Many top Canadian growth stocks represent strong underlying businesses, healthy financials, and organic growth opportunities.

Read more »

stock research, analyze data
Dividend Stocks

Wherever the Market Goes, I’m Buying These 3 TSX Stocks

Here are three TSX stocks that could outperform irrespective of the market direction.

Read more »

woman data analyze
Dividend Stocks

1 Oversold Dividend Stock (Yielding 6.5%) to Buy This Month

Here's why SmartCentres REIT (TSX:SRU.UN) is one top dividend stock that long-term investors should consider in this current market.

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Dividend Stocks

Better TFSA Buy: Enbridge Stock or Bank of Nova Scotia

Enbridge and Bank of Nova Scotia offer high yields for TFSA investors seeking passive income. Is one stock now undervalued?

Read more »

Golden crown on a red velvet background
Dividend Stocks

2 Top Stocks Just Became Canadian Dividend Aristocrats

These two top Canadian Dividend Aristocrats stocks are reliable companies with impressive long-term growth potential.

Read more »