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A comfortable retirement is definitely a dream of many people around the world. For most investors looking for TSX stocks to hold for the next three decades, retirement savings is the goal. Of course, creating the kind of retirement one dreams about is easier said than done.
However, there are some great companies out there that fit a long-term investor’s retirement plans well. Among the companies providing both dividend yield and capital-appreciation upside I like right now are Restaurant Brands (TSX:QSR)(NYSE:QSR) and Alimentation Couche-Tard (TSX:ATD). Here’s why these companies are among the top TSX stocks to consider adding to an Registered Retirement Savings Plan (RRSP) right now.
Top TSX stocks to buy: Restaurant Brands
Restaurant Brands remains one of my top picks for long-term investors. Much of this has to do with the company’s rock-solid business model and long-term cash flow growth prospects.
A leading purveyor of quick-service restaurant banners including Tim Hortons, Burger King, Popeyes Louisiana Kitchen and Firehouse Subs, Restaurant Brands has grown into a global fast-food behemoth. With quarterly revenues of around $1.6 billion, Restaurant Brands actually provided 14% year-over-year growth this past quarter. Along with organic system-wide sales growth, much of this growth has to do with continued global expansion plans.
Over time, I think QSR stock has the potential to outperform the market. Along with strong growth prospects, this company’s 3.6% dividend yield is attractive to long-term investors, as this distribution should grow over time as well.
Laval-based Alimentation Couche-Tard has operations in 24 nations and territories, with over 14,000 stores, out of which roughly 10,700 provide road transportation fuel. This convenience store and gas station behemoth operates in what many consider to be perhaps the most boring sector around.
That said, the company’s recent results have proven otherwise. Record-breaking results attributed to the company’s unique scale, operating resilience, and geographic diversification haven’t gone unnoticed.
In all core markets, Couche-Tard saw growth. That said, Couche-Tard is actually growing fastest in its European market, which saw growth of 6.2% year over year this past quarter. Over time, as more of the company’s acquisitions are fully integrated and streamlined, I expect these numbers to improve across the board.
Now, rising gasoline prices may provide a near-term headwind from here. Accordingly, perhaps investors will be able to attain a better entry point in the future. However, for those looking to hold ATD for the long term, this is a stock I think is attractive at current levels (around $60 per share).