Business & Investment

Two smart stocks to buy now and keep forever

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Investing in the stock market is a long-term game. You need to identify companies that are fundamentally strong, market leaders with widespread economic setbacks, and part of an expanding market. These stocks need to consistently outperform the wider market and allow investors to generate returns that outweigh inflation.

Here we will look at two TSX stocks that operate in different industries but need to be purchased now.

Shopify

Canada’s largest company by market capitalization, Shopify (TSX: SHOP)(NYSE: SHOP) Since the IPO in early 2015, we have already returned 5,300% to investors. So a $ 1,000 investment in Shopify stock right after an IPO is today worth nearly $ 55,000. Recent market volatility means that SHOP stocks have also fallen 18% from record highs, allowing you to buy dips.

Shopify provides e-commerce tools and solutions that allow merchants to sell their products through online channels. With over 1.7 million companies on the platform, the second quarter is over. Shopify also processes payments, processes orders, and provides marketing solutions to merchant bases.

The COVID-19 pandemic served as a tailwind for Shopify, which saw a 86% year-on-year increase in revenue in 2020. Wall Street is currently expected to grow 58.3% to US $ 4.64 billion and 34% to US $ 6.22 billion in 2021. 2022. By comparison, adjusted earnings per share are estimated to increase from $ 3.98 in 2020 to $ 6.6 in 2022.

Shopify’s sales over the last 12 months have increased from $ 853.6 million in the same period in 2018 to $ 3.9 billion, demonstrating 65% annual growth. Its free cash flow improved to $ 507 million, compared to the negative $ 31.5 million figure for the period.

Shopify also has a solid balance sheet, ending in the second quarter with nearly $ 8 billion in cash and short-term investments, compared to $ 910 million in debt. Its liquidity position makes Shopify easy to survive the economic downturn without raising debt or equity. It also provides the company with financial flexibility to develop capital for acquisitions and other growth initiatives.

Shopify stocks are traded at a premium and can become vulnerable if the market becomes bearish. However, any stock price adjustment should be seen as a buying opportunity for investors.

Emera

Shopify is a fast-growing stock, Emera (TSX: EMA) A company for more conservative investors. Over the last decade, dividend-adjusted inventories have increased by 175%. By comparison, TSX has risen by only 141% during this period.Despite remarkable progress, Emera becomes an investor Delicious forward yield 4.4%.

Emera is an energy and service company engaged in the generation, transmission and distribution of electricity. Emera’s cash flow, which is part of the recession-resistant utility sector, is regulated and can provide stable returns to investors.

A domestic giant with over $ 30 billion in assets and a customer base of over 2.5 million across Canada, the United States and the Caribbean.Emera Aiming for deployment With a $ 7.4 billion capital investment between 2021 and 2023, we can expand our rate base from 7.5% to 8.5% over the next three years. This will allow Emera to increase its dividend by 4% to 5% by 2023.

Two smart stocks to buy now and keep forever

https://www.fool.ca/2021/10/13/2-smart-stocks-to-buy-now-and-hold-forever/ Two smart stocks to buy now and keep forever

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