2 TSX stocks I will never sell
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Investors should treat positions as stocks they do not intend to sell. Adopting this kind of mindset will help you succeed in your investment thesis, even during tougher market times. Ultimately you are buying a business and it is important that business owners believe in the businesses they own. I try to keep that kind of mindset when it comes to my own portfolio. Admittedly, it’s much easier to keep that mindset in mind with stocks that I’m much more bullish on.
With that in mind, here are two TSX stocks that I never sell.
A growth stock in my portfolio
If there’s one growth stock in my portfolio that I would never sell, it’s Shopify (TSX:SHOP)(NYSE:SHOP). I believe this company still has an incredible growth avenue due to the potential in the e-commerce industry.
Around the world, e-commerce sales have increased dramatically over the past few years. In the UK, online sales account for around a third of all retail sales. In the United States, it accounts for about 13% of all retail sales. It is predicted that the global e-commerce industry could grow by 50% over the next four years.
Shopify is poised to benefit from this massive and emerging industry. It has established itself as a top performer, providing a platform and many tools needed by merchants to operate online stores. Shopify is very attractive because it offers a variety of packages, allowing merchants to choose a solution that meets their specific needs. Because of this, Shopify has been successful in attracting fledgling entrepreneurs and large-cap companies as customers.
Shopify is also led by its founder-CEO Tobi Lütke. Historically, companies run by founders tend to outperform companies run by non-founders. In addition, Lütke has a significant stake in the company. This suggests he’s ready to be rewarded based on Shopify’s performance. It also signals to investors that the interests of the company are aligned with those of the shareholders.
It’s no secret that Shopify’s stock has struggled tremendously over the past year. However, I am still a big believer in this stock and have no intention of selling it.
A superior dividend stock
Dividend investors might be interested to learn that I have no intention of selling any of my Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) stocks. The Canadian banking sector is one of the most influential sectors in the country. Of the eight largest corporations in Canada, four of them are banks.
I like the Bank of Nova Scotia because it emphasizes international growth. The company has positioned itself as a real competitor within the Pacific Alliance. It is a region that includes the countries of Chile, Colombia, Mexico and Peru. Economists believe that the region’s economy could grow faster than that of Canada and the United States in the next few years. This is corroborated by the Bank of Nova Scotia’s latest earnings presentation, in which it indicated that the company’s growth was primarily driven by its international business.
It also doesn’t hurt that the Bank of Nova Scotia offers a very reliable dividend to investors. It has paid shareholders a portion of its profits in each of the past 189 years.