One of the biggest misconceptions about investing is that it requires a significant amount of time to manage. This isn’t true, and that stereotype prevents many would-be investors from taking the plunge because they think that they’re too busy to invest. Fortunately, the market is flush with perfect set-and-forget stocks, meaning the I’m too busy to invest mindset really is a non-starter.
Here’s a look at a trio of options investors can pick today and forget about for a decade or more.
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First, the defensive pick
Adding a defensive stock to your portfolio is always a good idea. Defensive stocks are those which provide a necessary need that isn’t impacted by broader market fluctuations. In this case, utility stocks are prime examples of this thanks to their stable business models.
When markets experience a pullback (and they always will at some point), a defensive stock or two can minimize that dip.
Prospective investors seeking set-and-forget stocks should opt to invest in Canadian Utilities (TSX: CU). Canadian Utilities offers investors a stable, growing income through its quarterly dividend.
Even better, Canadian Utilities has already provided an incredible 53 consecutive years of annual bumps to that dividend. That’s more than any other company in Canada, and Canadian Utilities plans to increase that streak.
As of the time of writing, Canadian Utilities offers a stellar 4.9% yield.
Sprinkle in some high-yield income
Another option for investors looking at set-and-forget stocks is Telus (TSX: T). Telus is one of Canada’s big telecom stocks, which is yet another defensive sector to consider.
Telecoms generate a reliable revenue stream thanks to their subscriber-based business model. In the case of Telus, the company offers wireline, wireless, TV, and internet services to customers across the country.
It’s also worth noting that Telus is investing heavily in growth. The company has earmarked a whopping $70 billion investment over the next several years to upgrade its infrastructure and increase capacity.
Turning to income, Telus is a must-have investment for set-and-forget investors. The telecom offers a quarterly dividend that it has paid out without fail for three decades. As of the time of writing, the yield on that dividend works out to an insane 7.6%.
Adding to that, Telus has provided a semi-annual bump to that dividend going back over a decade and plans to continue that cadence.
Top it off with this pipeline champion
The final pick for investors seeking set-and-forget stocks is Enbridge (TSX: ENB). The appeal of Enbridge is hard to ignore. The company generates the bulk of its revenue from its massive pipeline business.
That pipeline operation contains both crude and natural gas operations. Enbridge hauls massive amounts of both each day. In fact, it transports so much that the company projects a massive defensive moat in the segment.
Specifically, Enbridge’s pipeline network transports one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S. market.
Incredibly, that’s only the tip of the iceberg.
Enbridge also boasts a growing renewable energy business as well as one of the largest natural gas utility companies in North America. Both provide recurring, stable revenue streams that are backed by regulated long-term contracts.
This provides a steady source of revenue for Enbridge to invest in growth and pay out a juicy quarterly dividend. As of the time of writing, Enbridge offers a tasty 5.5% yield, making it one of the best-paying dividends on the market.
Finally, like Telus and Canadian Utilities, Enbridge has provided an annual uptick to that dividend for an incredible three decades without fail. That makes Enbridge a perfect addition to any set-and-forget stock portfolio.
Set-and-forget stocks: A final note
The trio of stocks mentioned above offer investors an opportunity to build out a diversified portfolio with defensive appeal.
Even better, the above trio boast some juicy dividends that can be reinvested, allowing them to continue to grow for years.
In my opinion, one or all of the above should be core holdings in any well-diversified portfolio.
