Canadian Market Titans: 2 Long-Term Wealth Builders

Growing demand for their services could help these two top Canadian stocks deliver solid returns in the long run.

Jitendra Parashar

Author Bio Jitendra Parashar is a financial journalist who has been writing for The Motley Fool Canada since June 2020. With more than 13 years of experience in financial journalism, equity research, and market analysis, he helps investors understand market developments and identify long-term investment opportunities. Before joining The Motley Fool Canada, Jitendra spent several years at Market Realist covering U.S. equities, major economic developments, and developments in the automotive and technology industries. He also worked in commodity and currency research at brokerage firms, gaining insight into how economic trends, central bank decisions, and geopolitical events influence financial markets. Jitendra writes for beginner investors, dividend seekers, and Canadians looking to build wealth over the long term. He also contributes to the daily TSX Today series, explaining key Canadian market developments and highlighting news investors should watch. Based in India, Jitendra follows Canadian and U.S. markets closely. Outside of work, he enjoys travelling in the Himalayas, street and nature photography, and exploring programming and artificial intelligence. Education MBA in Finance and International Business Bachelor's degree in Journalism Areas of Expertise Canadian and U.S. financial markets, long-term equity investing, dividend investing, macroeconomic and geopolitical trends, automotive stocks, emerging technologies, and artificial intelligence. Social Media Profiles LinkedIn Muck Rack Favorite Investment Quote “Simplicity is the master key to financial success.” — John C. Bogle

Published January 27, 2025 4:20 pm EST

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.

dividend growth for passive income — Source: Getty Images

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.