Build Lasting Wealth: 3 Long-Term Tips and Stocks to Buy and Hold

There may be just three tips mentioned today, but there is an endless amount of stocks investors can pick up to match.

jar with coins and plant

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Building long-term wealth is akin to nurturing a flourishing garden. It requires patience, consistent effort, and strategic choices. But with a stellar strategy in place, investors can create a long-term portfolio that will stand the test of time! So, let’s look at three strategies and stocks to match.

Created with Highcharts 11.4.3Fortis + Canadian Natural Resources + Enbridge PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Dig into dividends

One effective approach is to invest in dividend-paying stocks, which provide a steady income stream and potential for capital appreciation. In Canada, several companies have a strong track record of paying and increasing dividends, making these attractive options for wealth accumulation.

For instance, Fortis (TSX:FTS) is a leading utility company with a history of nearly 50 years of consecutive dividend payments. Over the past 25 years, Fortis has delivered an impressive total return of approximately 2,076%, equating to an average annual return of 13%. This consistent performance underscores its stability and commitment to returning value to shareholders.

Another notable example is Canadian Natural Resources (TSX:CNQ), a major player in the energy sector. As of writing, CNQ boasts a dividend yield of 3.74% and demonstrated robust financial health with a price-to-earnings ratio of 7.47. Its substantial market capitalization and consistent dividend payments make it a solid choice for income-focused investors.

Furthermore, Enbridge (TSX:ENB) is a prominent energy infrastructure company known for its reliable dividend payouts. With a significant presence in the oil and gas industry, Enbridge has a strong track record of delivering consistent returns to its investors, making it a staple in many long-term investment portfolios.

Created with Highcharts 11.4.3Canadian National Railway + Goeasy + Bombardier PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Growth potential

Another strategy for building lasting wealth is to invest in companies with strong growth potential. These companies may reinvest earnings into expansion projects, research and development, or acquisitions, leading to increased shareholder value over time. In Canada, several firms exhibit such growth characteristics.

For example, Canadian National Railway (TSX:CNR) is a cornerstone of Canada’s transportation industry. In the third quarter of 2024, CNR reported strong earnings, reflecting its critical role in the economy and its efficient operations. The company’s extensive network and strategic initiatives position it well for sustained growth, making it an appealing option for long-term investors.

Another growth-oriented company is goeasy (TSX:GSY), a provider of financial services. goeasy has a history of delivering double-digit earnings growth and offers a forward price-to-earnings ratio of just nine, indicating potential undervaluation. Its expansion into new markets and services suggests a promising outlook for continued growth.

Bombardier (TSX:BBD.B), a leading business jet manufacturer, also demonstrated significant growth potential. Over the past year, its shares have risen over 106%, driven by strong demand for its products and services. The company’s focus on innovation and market expansion positions it well for future success.

Created with Highcharts 11.4.3Alimentation Couche-Tard + George Weston + Brookfield Corporation PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Diversify

Diversification is another key principle in building long-term wealth. By spreading investments across various sectors and asset classes, investors can mitigate risks associated with market volatility. In Canada, several companies offer diversification benefits due to their involvement in multiple industries.

Brookfield (TSX:BN) is a prime example, operating across sectors such as real estate, infrastructure, and renewable energy. With a revenue of approximately $97.7 billion, Brookfield’s diversified portfolio provides stability and growth opportunities, making it a resilient choice for investors seeking broad market exposure.

Similarly, Alimentation Couche-Tard (TSX:ATD) operates a vast network of convenience stores and fuel retailing across multiple countries. With a revenue of around $71.9 billion, its global presence and diversified operations contribute to its robust financial performance, offering investors exposure to the consumer discretionary sector.

Finally, George Weston (TSX:WN), a major player in the consumer staples sector, owns and operates various food processing and distribution businesses. With a revenue of approximately $60.9 billion, its diversified operations in the food industry provide a stable investment opportunity — e. Especially appealing during economic downturns when consumer staples remain in demand.

Bottom line

In conclusion, building long-term wealth involves a combination of strategies, including investing in dividend-paying stocks, targeting companies with strong growth potential, and diversifying across various sectors. By carefully selecting investments that align with these principles, investors can create a resilient and prosperous portfolio tailored to their financial goals.

Should you invest $1,000 in Alimentation Couche-Tard right now?

Before you buy stock in Alimentation Couche-Tard, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Alimentation Couche-Tard wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alimentation Couche-Tard and Brookfield. The Motley Fool recommends Brookfield Corporation, Canadian National Railway, Canadian Natural Resources, Enbridge, and Fortis. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

dividend growth for passive income
Dividend Stocks

Why I’d Invest in Canadian Value Stocks for Both Stability and Growth

Three Canadian value stocks are buying opportunities for investors looking for stability and growth.

Read more »

investment research
Dividend Stocks

Got $15,000? 3 Blue-Chip Stocks Every Canadian Should Consider

Here's why investing in blue-chip TSX stocks such as CNQ and CNR should derive outsized gains in 2025 and beyond.

Read more »

protect, safe, trust
Dividend Stocks

Where I’d Allocate $20,000 in 2 Safer High-Yield Dividend Stocks for Retirement Needs

Here are two safer, high-yield dividend stocks I'm looking at for my retirement needs.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

3 Reasons I’m Considering Enbridge Stock for a $5,000 Investment This April

I'm considering Enbridge stock to provide some defensive appeal and a juicy dividend to my long-term portfolio.

Read more »

monthly desk calendar
Dividend Stocks

A 9.2% Dividend Stock Paying Cash Every Single Month

With one of the highest dividends out there, this dividend stock deserves attention in your portfolio.

Read more »

Happy golf player walks the course
Dividend Stocks

Build a Powerful Passive Income Portfolio With Just $20,000

If you are worried that the bear market could reduce your savings, these stocks can build a powerful passive income…

Read more »

Hand Protecting Senior Couple
Dividend Stocks

How I’d Use My $7,000 TFSA Contribution to Start Retirement Planning

These TSX stocks have solid fundamentals and are well-positioned to deliver significant tax-free total returns over time.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

How to Turn Your TFSA Into a Gold Mine Starting With Only $10,000

It doesn't have to be complicated or scary. You can turn any portfolio into a major gold mine.

Read more »