Do you have $5,000? Buy these 2 shares and keep them until retirement

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Many people call themselves “long-term investors”. I find this term quite redundant. Indeed, investing should always be seen as a long-term decision. Anything done in the short term should be called “trading”. When investing, you should think about how each position could help you achieve a comfortable retirement.

With that in mind, you don’t need a lot of money to get started either. In this article, I will discuss two stocks that investors should buy and hold until retirement. By investing $5,000 in these businesses today, you could be well on your way to financial independence.

Buy this Canadian bank

I believe that all Canadians should invest in one of the big five banks. This is because the Canadian banking sector plays such an important role in our economy. If you look at the eight largest companies (by market capitalization) in Canada, four of them are banks. The second largest bank is not so far off from the rest of its peers. With that in mind, investors might do well investing in the company they do business with, as those stocks tend to move in the same way over time. However, if I had to choose one, I would choose Bank of Nova Scotia (TSX:BNS)(NYSE:BNS).

What’s interesting about this company is that it seems to focus much more on its international presence than its peers. In 2021, nearly one-third of the Bank of Nova Scotia’s revenue came from sources outside of Canada. In particular, the Bank of Nova Scotia is committed to increasing its presence in the Pacific Alliance. It is a region that includes Chile, Colombia, Mexico and Peru. Due to the growth of the middle class economy, it is expected that these countries could experience much greater growth than North American countries in the coming years.

The Bank of Nova Scotia is also an excellent dividend-paying stock. It is listed as a Canadian dividend aristocrat, having increased its dividend for the past 11 years. Today, the Bank of Nova Scotia offers a forward dividend yield of 5.50%. Considering that its dividend could be worth much more in the future, investors could see very attractive cost returns with this stock in a few years.

Telus (TSX:T)(NYSE:TU) is another company investors should consider adding to their portfolio. Like the banking industry, the Canadian telecommunications industry is dominated by a small group of companies. Telus is interesting because it operates the largest telecommunications network in Canada. Its network covers 99% of the Canadian population.

Although it is a significant player in the Canadian telecommunications industry, this is not even the most interesting aspect of its activity. Telus has also become a major player in the growing telehealth industry. It offers a wide range of solutions for healthcare professionals, including a suite of EMR offerings. Telus also offers MyCare, its personal care app. Through this platform, patients can search for medical professionals from the comfort of their own home.

Like the Bank of Nova Scotia, Telus is an excellent dividend-paying stock. A Canadian dividend aristocrat, Telus has managed to increase its dividend in each of the past 17 years. It currently offers investors a forward dividend yield of 4.70%. Like the Bank of Nova Scotia, Telus’ cost performance going forward could be very attractive given its history of dividend growth.

About Warren Dockery

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