Written by Jed Lloren at The Motley Fool Canada
Investing can be very daunting for newcomers. However, it doesn’t have to be. It sounds rather simplistic but new investors should really just focus on finding companies they believe in, with businesses they can understand. After that, simply hold those shares for a long time (assuming the company continues to operate as you’d expect) and you could be in a better financial position in the future. In this article, I’ll discuss three stocks that I think are no-brainers to buy for the next decade.
This growth stock is a no-brainer
Shopify (TSX:SHOP) is my top pick when it comes to a no-brainer growth stock. I’m aware that this stock may be a bit controversial for a number of reasons. First, Shopify’s business is no stranger to hurdles, especially recently. Last year, the company announced that it would be laying off 10% of its workforce. Shopify then followed that up with a couple more mass layoffs. As a result, Shopify saw its stock drop significantly, losing more than 80% of its value.
However, despite that, I strongly believe that Shopify’s best days are still ahead. This company is a leader in the global e-commerce industry, a space that should continue to grow for many more years. In addition, Shopify boasts some of the biggest names in the world among its clientele. The company is able to host companies like Netflix because of the breadth of its products and services. Shopify was once the best-performing stock on the TSX by a wide margin. I believe there’s still value to be had by investing here.
A stock that could be quite the powerhouse
If you’re interested in a bit of growth, but maybe not as aggressive as Shopify, then consider Brookfield Renewables (TSX:BEP.UN). This company is a world leader when it comes to renewable utilities. Brookfield Renewables operates a portfolio of facilities with a generation capacity of 32 gigawatts (GW). Its development pipeline could add 132 GW of generation capacity to its portfolio.
Brookfield Renewable stock has generated an annualized total return of 16% since inception. This accounts for the stock’s capital appreciation and the dividends distributed to shareholders. That dividend, by the way, has grown at a compound annual return of 6% for the past 11 years. If you’re interested in a stock that could grow while giving you reliable dividend payments, then Brookfield Renewable could be for you. I think this company could thrive, as the world continues to shift towards renewable energy.
A no-brainer dividend stock
When it comes to no-brainer dividend stocks, Fortis (TSX:FTS) is as easy as it gets. For those that aren’t aware, this is a utility company. It provides regulated gas and electric utilities to more than three million customers across Canada, the United States, and the Caribbean. Because of the nature of its business, Fortis shouldn’t encounter any major losses in revenue should an economic downturn occur. That’s because businesses and households alike will continue to (literally) need to keep the lights on.
Fortis is an outstanding dividend stock. Listed as a Canadian Dividend Aristocrat, Fortis has increased its dividend distribution in each of the past 50 years. The company has already stated its plans to continue raising its dividend through to 2028 at a rate of 4% to 6%. That would help shareholders stay ahead of inflation. If you’re looking for a top dividend stock, look no further than Fortis. This is a stock that I believe investors could hold without worry for years to come.
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Fool contributor Jed Lloren has positions in Brookfield Renewable Partners, Fortis, and Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Brookfield Renewable Partners, Fortis, and Netflix. The Motley Fool has a disclosure policy.