Making money from the Canadian stock market in the short term can be risky and demanding, as it requires constant attention and quick decision-making. However, if you don’t want to compromise on stability or peace of mind, focusing on long-term wealth-building stocks is the smarter choice. By investing in market-leading companies with robust fundamentals, proven track records, and consistent earnings growth, you can grow your wealth steadily over time without the stress of daily market fluctuations.
In this article, I’ll introduce you to two Canadian market titans that are built for long-term wealth creation.
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Brookfield Renewable stock
Brookfield Renewable Partners (TSX: BEP.UN) seems to be on the path to powering the world with clean energy. The company mainly generates revenue by operating a massive portfolio of hydroelectric, wind, solar, and energy storage facilities across the world. At $28.83 per share and a market cap of $8.2 billion, Brookfield Renewable stock has an attractive annualized dividend yield of 6.9%, making it a solid pick for investors seeking income.
While its stock has faced some short-term headwinds, with a year-to-date decline of about 12%, Brookfield Renewable’s recent financial growth trends tell a different story. In the third quarter of 2024, the company’s funds from operations rose 11% YoY (year over year) to US$278 million with the help of smart acquisitions, asset development, and strong pricing. The company’s diversified business and robust cash flows provide a stable foundation even during challenging times.
Notably, Brookfield Renewable is developing a record 200,000 megawatts of clean energy capacity, with 8,400 megawatts expected to come online in 2025 alone. Its innovative approach of recycling mature assets to fund new projects ensures a sustainable growth model. For investors seeking a stock that aligns with the future of energy while delivering steady returns, Brookfield Renewable stock could be a solid choice.
CAE stock
Speaking of long-term wealth generation, CAE (TSX: CAE) is another Canadian market titan worth considering. This Canadian technology firm mainly focuses on training and simulation solutions for the aerospace, defence, and security industries.
Recently, CAE stock has shown promising momentum despite short-term challenges. The stock is currently trading at $34.80 per share, with a market cap of $11.1 billion after rallying by nearly 28% over the last year. This strong performance reflects investors’ growing confidence in the company’s growth prospects.
In the September 2024 quarter, CAE posted robust revenue of $1.14 billion, marking an 8% YoY increase. The company’s adjusted segment operating income also climbed 10% from a year ago to $149 million, signalling effective execution across both its civil aviation and defence divisions. Notably, its civil aviation segment delivered 18 full-flight simulators and maintained a strong 70% utilization rate for its training centres during the quarter.
Interestingly, CAE recently expanded its stake in SIMCOM Aviation Training and secured a $1.7 billion contract under Canada’s Future Aircrew Training program. These moves highlight its focus on boosting recurring revenue and strengthening its presence in the simulation and training space. This is one of the key reasons why CAE stock offers a compelling opportunity for investors seeking long-term gains, given the growing demand for its services.
