With some of the best Canadian stocks trading at discounted prices, it’s never been more important to know which stocks to buy and hold.
Interest rates continue to rise in Canada, increasing the risk of a potential recession for the Canadian economy.
Interest rates impact the cost of borrowing for Canadian consumers and businesses, which in turn affects the rates of investment products like mortgages, lines of credit and savings accounts.
Rate hikes also tend to have an inverse relationship with the stock market.
When rates go up, generally, the stock market begins to fall as safer investment products, like bonds, become more attractive.
In economic cycles, smart investors tend to look for undervalued companies and buy Canadian stocks to hold for the long-term.
Below, we’ll break down some of the best Canadian stocks to buy and hold right now.
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The Best Canadian Stocks to Buy and Hold Right Now
Some investors prefer to ignore short term volatility and hold stocks for the long term.
For long-term investors, dividend stocks are among the best Canadian stocks to buy and hold.
These are some of the best Canadian stocks to buy and hold right now:
- Toronto Dominion Bank (TSX:TD)
- Barrick Gold (TSX:ABX)
- Royal Bank (TSX:RY)
1. Toronto Dominion Bank (TSX:TD)
Toronto Dominion Bank is a solid financial institution that has been in operation since 1955. It has a generous dividend yield of 4.2% and announced very solid 2022 third quarter results in August.
The company recorded a 17.7% rise in net-interest income year-on–year due to higher interest rates and rising loan demand, the Canadian Central bank raised interest rates to 2.5% which is its highest level since 2008 and warned of more increases due to the high inflation rate. Increasing interest rates are expected to increase Toronto Dominion bank’s earnings.
It agreed to buy US brokerage firm Cowen Inc. for $1.3 billion in August, this will further deepen the bank’s presence in the US following its February purchase of the US bank, First Horizon and makes it one of the best stocks to buy in Canada and hold for the long haul.
2. Barrick Gold (TSX:ABX)
Barrick is a mining company that produces gold and copper with 16 operating sites in 13 countries and headquartered in Toronto. It reported net earnings of $488 million in the 2022 second quarter, up from $411 million in the year-ago quarter, and beat analysts’ expectations.
It has a solid balance sheet with a net cash of $636 million and paid a $0.20 per share dividend which gave a 5% dividend yield.
The company’s total gold production rose between the 1st and 2nd quarter.
These reasons make it one of the best Canadian stocks to buy and hold for the long term.
3. Royal Bank (TSX:RY)
Another bank on the list of the best stocks in Canada to buy now and hold for the long-term is Royal Bank. It is the largest Canadian bank by market capitalization.
It consistently pays dividend to shareholders. In fact, it recently paid a dividend of $1.28 per share on November 24, 2022 to common shareholders of record at the close of business on October 26, 2022.
It is a very stable company with a stable stock price and low volatility, making it one of the best stocks in Canada to buy and hold heading into tax season.
