3 Canadian Stocks to Buy That Could Be Massive Long-Term Winners

Here are three top Canadian stocks to buy for long-term investors looking for total returns in the years and decades to come.

| More on:
Hands holding trophy cup on sky background

Image source: Getty Images

Global economic conditions have not been favourable of late. Perhaps that’s understating how difficult the markets have been for most investors in 2022. Those looking for top Canadian stocks to buy have mostly seen red this year, though there are some bright spots to look at.

This macro environment, which is expected to continue into 2023, doesn’t bode well for near-term investors. Indeed, with rates continuing to rise, and inflation remaining high, there isn’t much growth investors can do about shrinking valuation multiples.

That said, those looking through what could be another year of pain do have opportunities. Long-term investors can always look for reasons to buy, particularly when the market is headed lower. These three companies are ones I think fit the bill nicely for those with a multi-year investing time horizon.

Top Canadian stocks to buy: Fortis

The third quarter of 2022 has not worked out favourably for Fortis (TSX:FTS). This company’s stock price has declined around 10% over that time frame. However, there is some good news for long-term investors who zoom out. This company’s performance over the past five years looks much better.

Such is the case with many stocks on this list. As a key utilities provider for millions of homes in North America, Fortis’s cash flows are extremely robust. Thus, this is a company that’s valued less on sentiment and more on its fundamentals.

Accordingly, for long-term investors seeking companies with strong financials to buy now for the long haul, Fortis remains a top pick of mine. This is a company that’s provided steady total returns over the long term. A significant portion of these returns comes from a dividend which has grown consistently over the past five decades each and every year (it has a current yield of around 4.1%).

Restaurant Brands

Another top Canadian stock I’ve been touting for a long time is Restaurant Brands International (TSX:QSR). This company is one of the most popular fast-food operators in the world. With world-class banners under its umbrella, including the likes of Burger King and Tim Hortons, among others, Restaurant Brands is a behemoth in this defensive sector.

The company’s expansion plans into Europe have enticed many investors to consider this stock. Growth opportunities abound, but the company has grown responsibly over the years. Thus, long-term investors can benefit from such a model, with both capital appreciation and dividend upside over the long term.

This company’s recent report cited 14% system-wide sales growth and digital sales growth of 26%. Thus, long-term investors seeking a 3.3% yield and strong growth upside ought to consider this company, which is one sale right now, in my view.

Enbridge 

Enbridge (TSX:ENB) is another company that makes this list of top Canadian stocks to buy for good reason. Most investors know Enbridge for its impressive dividend yield of nearly 7%. However, from a long-term, capital-appreciation standpoint, this stock is also a standout.

Enbridge is among the key energy pipeline players in North America. Accordingly, given concerns around energy security, this is a company with some secular tailwinds behind its business. There’s less talk of spill, environmental concerns, regulation, and blockades. Now, investors are focused on companies that can deliver energy safely and reliably. Enbridge is one such company.

That said, inevitably, the rhetoric will shift around this company. However, even despite this more positive sentiment, ENB stock still trades under 20 times earnings. For those seeking long-term growth at a reasonable price, Enbridge is a great pick, in my view.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald has positions in Enbridge and Restaurant Brands International. The Motley Fool recommends Enbridge, Fortis, and Restaurant Brands International. The Motley Fool has a disclosure policy.

More on Investing

edit Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.
Investing

Got $2,500? 2 Top Stocks That You Can Buy and Hold for a Lifetime

Shopify (TSX:SHOP) and Fortis (TSX:FTS) are great long-term plays to hang onto for the long haul.

Read more »

Engineers walk through a facility.
Dividend Stocks

Dividend Stocks: Here’s a Diamond in the Rough Yielding Over 6%

ChemTrade Logistics is a little known gem, yielding 6.2% and generating record revenues and earnings as demand soars

Read more »

Increasing yield
Dividend Stocks

Boost Your Passive Income With These 3 High-Yielding Dividend Stocks

These three dividend stocks offer healthy dividend yields and stable cash flows to grow your passive income.

Read more »

Oil pumps against sunset
Energy Stocks

Pulse Seismic: An Energy Stock Like No Other

The outlook for energy stocks remains strong, as demand continues to outpace supply. Do you know all your options for…

Read more »

Illustration of bull and bear
Dividend Stocks

Protect Your Wealth: 2 Defensive Gems to Buy in 2023

Looking to pick up some defensive gems for your portfolio? Protect your wealth by buying one of these stellar stocks…

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Dividend Stocks

1 Oversold Dividend Stock (Yielding 6.5%) to Buy in the New Year

Here's why SmartCentres REIT (TSX:SRU.UN) is one top dividend stock long-term investors should consider in this current environment.

Read more »

Simple life style relaxation with Asian working business woman healthy lifestyle take it easy resting in comfort hotel or home living room having free time with peace of mind and self health balance
Energy Stocks

TFSA Investors: 2 Top Dividend Stocks for Passive Income

TFSA users can unlock the power of tax-free passive income by investing in top dividend stocks within the expanded $6,500…

Read more »

potted green plant grows up in arrow shape
Tech Stocks

Growth Stocks Down More Than 60% That Could Rally in 2023

Shopify is down more than 60%. Could it rebound in 2023?

Read more »