3 TSX stocks I will “never” sell


Stock market volatility has increased dramatically over the past two months with uncertainty about its short-term direction. While such market conditions may very well confuse investors, they should always stick to certain quality stocks that are not worth selling, despite such market uncertainties.

While it’s important to add fundamentally sound stocks to your portfolio, the importance of holding them for the long term cannot be underestimated for creating wealth from stock investments. In this article, I will highlight three of the top TSX stocks that I would never sell, regardless of short-term market fears.

Enbridge Shares

After posting 16.5% gains in the first quarter, shares of Enbridge (TSX:ENB)(NYSE:ENB) plunged 5.5% in the second quarter mainly due to a sell-off in the energy sector amid growing fears of a possible recession. However, it may not be a wise decision for long-term investors to sell quality TSX stocks like ENB because they have enough financial strength to remain profitable even in tough economic times.

Enbridge is primarily focused on providing energy transmission services through its extensive liquids and gas transmission system. Despite the challenges of COVID-19, its adjusted profit grew 21% between 2021 and 2016. Over the same period, its total revenue also jumped 36% as demand for energy products remained strong. While fears of a short-term economic slowdown could hurt the short-term outlook for oil and gas, the long-term outlook remains strong with the expected expansion of the global economy over the next decade. Additionally, Enbridge has a very attractive dividend yield of approximately 6.1%, which could continue to reward investors even in tough economic times.

Royal Bank of Canada Stocks

Another great TSX stock that I wouldn’t sell, no matter how volatile the market, is Royal Bank of Canada (TSX:RY)(NYSE:RY). Apart from being the largest Canadian bank, it is also the largest component of TSX Composite due to its market capitalization of approximately $173.6 billion at present.

Royal Bank has a strong balance sheet and prudent risk management to weather a recession. After facing several operational challenges during the COVID period in its fiscal year 2020, the bank recorded a dramatic financial recovery in its fiscal year 2021, as its adjusted earnings jumped up up 40.4% year over year to around $11.19 per share. Although an economic downturn could harm its short-term prospects, its prospects for long-term financial growth remain strong thanks to its well-diversified, large-scale business model and its continuous investments in new technologies and innovations. Additionally, Royal Bank also has a decent dividend yield of around 4.2% right now, which should help investors continue to earn steady income, even as short-term economic concerns drag down its shares for a few quarters.

Stock Shopify

Shopify (TSX:SHOP)(NYSE:SHOP) is neither a dividend-paying stock nor a history of steady financial growth for decades like Enbridge and Royal Bank. Nonetheless, I would still avoid selling Shopify stock in the current market chaos, as I expect the digital commerce boom to continue despite near-term challenges, which should help this tech company continue to thrive. grow in the long term.

Despite its 77% year-to-date losses, Shopify has still generated over 300% returns for its loyal investors over the past five years. I expect the Canadian e-commerce giant to continue surprising the market by posting much better than expected financial growth over the next few years thanks to strong demand for its innovative and easy-to-use e-commerce solutions. These factors should fuel a strong rally for this TSX stock over the next few years. That’s why selling it due to short-term fears doesn’t make sense.


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