Now is the time for anyone with plans to build a stable portfolio to shop for Canadian stocks to hold at least until 2035. You can generate higher returns in an extended holding period while countering market volatility.
The five Canadian companies on my list have enduring businesses, are time-tested, or provide essential services. They should provide healthy, long-term returns.
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Energy giant
Enbridge (TSX: ENB) is a top pick because of its industry standing, size, and scale. The $130.87 billion midstream energy company operates critical pipelines throughout Canada and the United States. It transports crude oil, natural gas, and natural gas liquids (NGLs) and is slowly growing its renewable energy franchise.
ENB is a Dividend Aristocrat, owing to 29 years of annual dividend increases. If you invest today, the share price is $60.09 (+35.11% year to date), while the dividend offer is a lucrative 6.34%.
Bright growth prospects
The growth prospects for National Bank of Canada (TSX: NA) are bright. This $45.2 billion bank, Canada’s sixth-largest lender, will add muscle to its industry position once it takes over Canadian Western Bank on February 3, 2025.
NA’s chief executive officer (CEO), Laurent Ferreira, said the acquisition of CWB is a key pillar in the bank’s domestic growth in 2025. On December 20, 2024, the Minister of Finance approved the proposed $5 billion transaction. It was the last hurdle before the target completion date. National Bank will include CWB in its second-quarter (Q2) fiscal 2025 financial results.
As of this writing, NA trades at $132.70 per share (+35.18% year to date) and pays a modest but safe 3.13% dividend (41.29% payout ratio).
Dividend-growth program
TELUS (TSX: T) trades at a discount (-13.27% year to date) due to the nearly year-long slump of the communications services sector. However, Canada’s second-largest telco remains a reliable passive-income provider. At $19.45 per share, the dividend offer is a generous 8.08%.
The $29 billion telecom company provides essential services through its world-leading 5G and PureFibre networks. According to management, the target semi-annual dividend increase, with a 7% to 10% annual increase from 2023 to the end of 2025, still stands.
Strong competitive positive
E-commerce is here to stay, the same with Lightspeed Commerce (TSX: LSPD). The $3.43 billion point-of-sale and e-commerce software provider announced a strategic organization early this month. Management’s objective is to optimize for profitable growth. The current share price of $22.59 is cheap vis-à-vis the growth potential.
In Q2 fiscal 2025 (three months ending September 30, 2024), revenue increased 20% to US$277.2 million versus Q2 fiscal 2024, while net loss thinned 30% to US$29.7 from a year ago. Its founder and CEO, Dax Dasilva, said, “Our differentiated product offerings have enabled us to develop a strong competitive position.”
High-flyer
5N Plus (TSX: VNP) is the high-flyer in the group. At $7.26 per share, the year-to-date gain is 92.06%. The business of this $646.45 million company, a producer of specialty semiconductors and performance materials, thrives.
In Q3 2024, net earnings jumped 327% year-over-year to $6.4 million, while backlog reached $249.7 million. Its president and CEO, Gervais Jacques, expects an expanded specialty semiconductor capacity in the future to meet contracted demand.
Well-balanced
My selection of five Canadian stocks for the next decade is a balance of growth and steady income streams.
