Investing in high-quality Canadian stocks could help generate significant wealth over time. Notably, shares with fundamentally strong businesses, the ability to grow profitably, and solid growth prospects will likely outperform the benchmark index by a significant margin in the long run. Thus, if you have $500 and plan to invest in the equity market, here are the top five Canadian stocks to buy and hold.
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WELL Health
WELL Health (TSX: WELL) is one of the top TSX stocks to buy and hold for the long term. The omnichannel healthcare company has consistently delivered solid revenue growth, led by the ongoing strength in its Canadian Patient Services segment. In addition, its U.S.-based virtual care platforms are witnessing solid momentum.
WELL Health is well-positioned to deliver solid financials, driven by higher patient visits and its robust acquisition pipeline. The company is also leveraging artificial intelligence to accelerate product development, which bodes well for future growth. At the same time, its focus on reducing costs and debt will likely boost its cash flow and profits, supporting the uptrend in its share price.
Aritzia
Aritzia (TSX: ATZ) is a top stock to generate notable capital gains over time. This apparel company is consistently growing its sales and earnings at a solid pace. Moreover, it is expanding its geographic presence, which sets the stage for solid long-term growth.
In addition to opening new boutiques, Aritzia’s focus on strengthening its e-commerce business and enhanced omnichannel capabilities will continue to boost its revenue. Further, growing brand awareness, a better product mix, and new seasonal styles augur well for long-term growth. Additionally, the company’s focus on reducing warehousing costs and optimizing spending will help drive profitability and support its share price.
Alimentation Couche-Tard
Alimentation Couche-Tard (TSX: ATD) – which operates convenience stores, retails fuel, and provides electric vehicle (EV) charging solutions – is another attractive stock. The company’s strong revenue growth and growing earnings base support its share price and drive higher dividend payments.
Couche-Tard’s extensive network of stores, value proposition, and growing focus on increasing private-label sales will attract new customers and likely enhance its margins and profits in the coming years. The retailer is also set to benefit from the shift toward renewable energy, which will likely boost its customer base and support growth. Further, its membership programs and strategic acquisitions bode well for future expansion and growth.
Bombardier
Bombardier (TSX: BBD.B) stock is another top TSX stock to buy and hold. The Canadian aviation company is poised to capitalize on the growing demand for its business jets and is likely to benefit from its extensive aftermarket and support facilities network.
While Bombardier stock has risen over 83% over the past year, it still has significant upside potential. The company’s new lineup of medium and large business jets and its focus on innovation will support its top line. Further, the increasing aircraft deliveries and diversification across defence, services, and the pre-owned aircraft market will likely boost revenue growth and improve profitability.
goeasy
goeasy (TSX: GSY) is another attractive long-term bet as the subprime lender offers growth, income, and value. The company is consistently growing its top and bottom lines at a solid pace and enhancing its shareholders’ value through higher dividend payments.
The large subprime lending market, and goeasy’s solid competitive positioning, wide product range, diversified funding sources, and omnichannel strategy will drive its consumer loan portfolio and overall revenue. Further, leverage from higher sales, solid credit underwriting capabilities, and operating efficiency will support its earnings growth, dividend payments, and share price.
