2 Safe Stocks for Beginners to Buy and Hold for Decades

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2 Safe Stocks for Beginners to Buy and Hold for Decades's Profile


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Stock market investing is inherently risky. All new investors should remember this fact. However, some assets trading on the stock market entails a lower degree of capital risk than others. Investors with low-risk tolerance tend to invest in assets that offer more reliability based on their historical performances in equity markets.

Today, I will discuss two reliable TSX stocks that you can consider investing in if you are in search of stocks for beginners that offer lower capital risk.

The telecom industry plays an integral role worldwide in this day and age. No matter how badly the economy gets affected, people will always need to stay in touch with each other and require access to information over the internet. Telecom providers like BCE (TSX:BCE)(NYSE:BCE) provide an essential service.

BCE is a $62.69 billion market capitalization giant in the Canadian telecom space. It enjoys the most significant market share in the industry, and it holds a near monopoly. The company’s position as a leading 5G provider in the country also positions it well for substantial revenue growth in the coming years.

BCE stock trades for $69.11 per share at writing, and it pays its shareholders at a juicy 5.32% dividend yield. It is a blue-chip stock that has consistently maintained healthy recurring cash flow and liquidity. The company boasts a wide enough economic moat to ride out recessions and continue delivering shareholder dividends.

Canada’s oldest financial institution

Bank of Montreal (TSX:BMO)(NYSE:BMO) is Canada’s oldest bank, and it pioneered the trend of distributing shareholder dividends. The $91.62 billion market capitalization Canadian bank has been rewarding its shareholders with a portion of its profits through dividend payouts for almost 200 years. It is the fourth-largest financial institution in Canada in terms of market capitalization.

The Canadian banking industry has shown substantial resilience through the centuries. The fact that BMO still stands as one of the strongest banks in Canada, despite multiple recessions and two World Wars, is proof that it is a resilient institution.

Canadian bank stocks are a staple in many investment portfolios due to their historical reliability. The company is also looking toward more growth as it expands its operations into the U.S.

BMO stock trades for $137.02 per share at writing, and it boasts a juicy 4.06% dividend yield that you could use to earn some passive income while enjoying long-term wealth growth through gradual capital appreciation.

Foolish takeaway

Rising inflation rates are a massive concern for everyone today. Many people afraid of stock market uncertainty tend to hold their capital as cash. Unfortunately, storing your wealth as cash delivers returns that cannot keep pace with inflation. Rising living costs significantly erode the value of money.

Stock market investing is inherently risky. However, investing in reliable income-generating assets like BCE stock and BMO stock can provide you with returns that can help you counter the impact of inflation. The capital can remain intact, and you can earn a passive income through virtually guaranteed shareholder dividends.



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