3 TSX Stocks You Can Keep Forever

Plan to create wealth? Try these three TSX stocks.

| More on:
Two seniors float in a pool.

Source: Getty Images

Stocks outpace most asset classes when it comes to creating wealth in the long term. Besides capital appreciation, investors can also benefit from dividend payments. Given their higher returns potential, stocks are also risky. Thus, investors should take caution before buying and holding stocks for the long term. Against this backdrop, here are three TSX stocks that one can confidently own forever.


Thanks to its profitable growth, Aritzia (TSX:ATZ) has compounded its shareholders’ wealth. The stock has gained about 250% in five years, reflecting a CAGR (compound annual growth rate) of 28.5%. Thanks to this strong growth, Aritzia exceeded the returns of the S&P/TSX Composite Index by a wide margin. 

The fashion company benefits from solid demand for its products. Its revenue grew at a CAGR of 19% from FY18 to FY22. Meanwhile, its net revenues increased by 48.3% in the first nine months of fiscal 2023. Thanks to the higher sales, adjusted net income grew at a CAGR of 24% between FY18 and FY22. So far in FY23, its adjusted EPS (earnings per share) has improved by 22.7%. 

Aritzia foresees its top line growing at a CAGR of 15–17% through 2027. Moreover, EPS will grow at a higher pace than revenues. The visibility over future growth supports Aritzia stock moving higher. The fashion retailers’ ability to drive full-price selling, expansion of boutiques, growing footprint in the U.S., and strengthening of its e-commerce platform provide a solid foundation for growth. Overall, investors can buy and hold this consumer stock forever.


Enbridge (TSX:ENB) transports hydrocarbons and is an integral part of the energy value chain. Further, its two-pronged strategy of expanding conventional pipeline assets and focusing on ramping up its low-carbon investments and ownership interests in renewable energy facilities positions it well to capitalize on energy demand.  

The operator of the world’s longest pipeline sees high utilization of its assets and has 40 diverse cash flow streams, which reduces risk. Moreover, through its long-term contractual arrangements, Enbridge reduces volume and price risk. Furthermore, its solid secured program, revenue escalators, and inflation-protected EBITDA (earnings before interest, tax, depreciation, and amortization) position it well to deliver steady growth. 

This large-cap company is also known for its solid dividend payouts. Enbridge is a top dividend stock that has paid and increased its dividend regardless of the market conditions. Further, its payouts are well-covered, implying that the company could continue to enhance its shareholders’ returns through dividend hikes. Long-term investors can rely on this stock for consistent income and growth. 


Dollarama (TSX:DOL) is a lucrative investment for investors looking for safety and growth in the long term. Thanks to its compelling pricing, Dollarama continues to attract value-driven shoppers. The growing foot traffic supports its sales and profitability. 

Notably, Dollarama’s revenues have increased at a CAGR of 11% since 2011. During the same period, the discount retailer grew earnings at a CAGR of 17%. With its growing earnings base, the company is enhancing its shareholders’ returns through higher dividend payments (its dividend has increased 11 times since 2011).

Dollarama’s low fixed price points, diversified product mix, and continued expansion of its store base indicate that the company could continue to deliver solid growth. Moreover, its defensive business model positions it well to perform well in all economic situations.  

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aritzia. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

More on Investing

Senior Couple Walking With Pet Bulldog In Countryside
Dividend Stocks

CPP Insights: The Average Benefit at Age 60 in 2024

The average CPP benefit at age 60 in average is low, but claiming early has many advantages with the right…

Read more »

edit Sale sign, value, discount

2 Bargains I’d Buy as They Dip Toward 52-Week Lows

Spin Master (TSX:TOY) stock and another underrated Canadian play could surge again as they look to reverse course.

Read more »

Dividend Stocks

Why Did goeasy Stock Jump 6% This Week?

The spring budget came in from our federal government, and goeasy stock (TSX:GSY) investors were incredibly pleased by the results.

Read more »

woman analyze data
Dividend Stocks

My Top 5 Dividend Stocks for Passive-Income Investors to Buy in April 2024

These five TSX dividend stocks can help you create a passive stream of dividend income for life. Let's see why.

Read more »

investment research
Stocks for Beginners

New Investors: 5 Top Canadian Stocks for 2024

Here are five Canadian stocks that might be ideal for a beginner investment portfolio.

Read more »

Energy Stocks

Here Is Why Enbridge Is a No-Brainer Dividend Stock

For investors looking for a no-brainer dividend stock worth holding for the long term, here's why Enbridge (TSX:ENB) should be…

Read more »

Dots over the earth connecting the world
Tech Stocks

Hot Takeaway: Concentration in 1 Stock Can Be Just Fine

Concentration in one stock can be alright under the right circumstances, and far better than buying a bunch of poor-performing…

Read more »

grow money, wealth build
Bank Stocks

TD Bank Stock Got Upgraded, and It’s a Good Time to Load Up

TD Bank (TSX:TD) stock is getting too cheap, even for analysts at the competing banks!

Read more »