If you invested in Shopify stock five years ago and held onto your shares, your original investment would have grown about 3,973% as of writing. Over that same time period, an investment in Air Canada would have returned about 480% if you had sold before the crash.
It’s practically impossible to buy stocks at exactly the right time, but you can back a great business. This is far more sustainable in growth markets, and you can score some easy wins by holding steady. That’s why today we’re going to look at two valuable options that have what it takes to take on the market long term.
NorthWest Healthcare NorthWest Healthcare Properties REIT (TSX:NWH.UN) is a leader in the healthcare property market. It owns multiple properties around the world, in a diverse range from hospitals to offices. Yet its growth has really only begun, with renewed investment coming during the pandemic.
The pandemic brought on two benefits for the group. The world realized it needed to invest in its healthcare properties, and interest rates were low. This led to a flood of renewed leases, where the company now has a 97% occupancy rate with an average 14.5-year lease agreement!
In a year that was incredibly difficult for many industries, NorthWest proved it could manage it and still consistently grow revenue. Its price to sales (P/S) ratio is at a reasonable 5.8, and its price to book (P/B) ratio an incredible 1.5 as of writing. Shares are up 70% in the last year, and you can still lock in a 6.38% dividend yield.
Dye & Durham You can still get in pretty much on the ground floor when it comes to Dye & Durham Ltd. (TSX:DND). The company came along after the crash, when the market was already slightly rebounding. Even better, the company provides software, making it advantageous to the tech stock rally.
As the company provides software support for legal firms and government organizations, these industries are likely to produce revenue no matter what happens in the market. The company’s revenue, gross margin and EBITDA continue to rise year over year and will likely continue to do so well into the future.
Yet because of the tech pullback lately, investors have a great opportunity to buy up this stock at a discount. After rising 255% since its Initial Public Offering (IPO) to all-time highs, shares are now down 17% as of writing, offering a great chance to jump in before a rally in the tech sector.
Foolish takeaway These two stocks offer a strong opportunity for investors seeking long-term investments. NorthWest stock has already seen strong gains in the last few years, but it remains a stable stock with its lease agreements. You can then take advantage of its dividend yield to reinvest in your stake at no cost to you.
As for Dye & Durham stock, the company is only in the beginning stages of its growth. The pullback has given it a reasonable P/B ratio of 4.9 to jump in on the stock. Given its strong industry performance, it’s likely to see at the very least stable growth for long-term investors. You could even see returns as high as that of Air Canada or Shopify stock!
The post Got $5,000? 2 Top Stocks to Buy and Hold for the Long Term appeared first on The Motley Fool Canada.
Fool contributor Amy Legate-Wolfe owns shares of AIR CANADA, NORTHWEST HEALTHCARE PPTYS REIT UNITS, and Shopify. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.
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