Want to Get Richer? Here Are the 3 Best Stocks to Buy Now and Hold Forever

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The Canadian stock market is going through its first significant pullback of the year. Up until two weeks ago, the S&P/TSX Composite Index had returned roughly 7% on the year. However, the index has since been hit with a 3% pullback and is now up 4% on the year.

While a 3% pullback is no reason to make a rash decision, it could be a good opportunity to review your watch list. Having an updated watch list that’s ready to go will allow you to take advantage of sudden drops in price.

Another reason is that there are still deals to be had by Canadian investors. Even with the Canadian stock market’s strong performance over the past six months, the TSX still has no shortage of discounted stock to choose from.

With that in mind, I’ve reviewed three top Canadian stocks that are perfect for a long-term investor’s portfolio.

Constellation Software

It may cost you close to $4,000 for a single share, but Constellation Software’s (TSX:CSU) track record speaks for itself. 

Also, investors shouldn’t be overly fixated on a stock’s price. Over the long term, what matters much more than the price of the stock is the amount of money you have invested in a company.

There aren’t many stocks on the TSX that can compete with the returns of Constellation Software over the past two decades. 

Even as the company is now valued at a market cap of $70 billion, the market-beating gains have continued. Shares are up a market-crushing 200% over the past five years.

If you’re looking to get rich from the stock market, this high-growth tech stock should be on your radar.

Brookfield

A winning portfolio shouldn’t only be focused on driving as much growth as possible. Diversification is another key ingredient for earning returns over the long term. 

When it comes to diversification, Brookfield (TSX:BN) is not second to many. The $80 billion company has investments spread across the globe, spanning a range of different industries. 

Despite the company’s diversified portfolio though, the stock is no stranger to outperforming the market’s returns. Shares of Brookfield have nearly doubled the returns of the Canadian stock market over the past five years.

If you feel that your portfolio is over-indexed toward a sector or two, picking up a few shares of Brookfield could be a wise idea.

Bank of Montreal

For investors looking to get rich quickly, the Canadian banks likely are not top of mind. The Big Five are not known for driving multi-bagger returns. However, that certainly doesn’t mean a Canadian bank doesn’t belong in a long-term portfolio.

What a Canadian bank can provide is passive income. The Canadian banks offer not only some of the highest yields on the TSX but some of the longest payout streaks, too. 

Bank of Montreal (TSX:BMO) has been paying a dividend to its shareholders for close to 200 consecutive years. On top of that, the dividend is yielding just shy of 5% at today’s stock price.

Patient investors who are willing to put in the time shouldn’t overlook the Canadian banks.

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