When looking to secure your financial future through investments, it’s wise to explore stocks best positioned to benefit from secular tailwinds, which are long-term trends driving sustained demand. Moreover, these companies should have the ability to weather economic shifts. Such TSX stocks offer the potential for substantial gains as they are backed by fundamentally strong businesses, reliable earnings, and robust cash flows. Against this background, here are three TSX stocks to buy now for long-term gains.
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Brookfield Asset Management stock
Brookfield Asset Management (TSX:BAM) is a solid TSX stock to generate robust gains in the long term. The alternative asset manager has access to large-scale capital, allowing it to invest in premier assets and businesses across various geographies and industries. This broad exposure to high-growth sectors, combined with predictable earnings and an asset-light balance sheet, positions the company to deliver impressive total returns over time.
In 2024, Brookfield raised an impressive $135 billion in new capital, significantly strengthening its investment capacity. With stable costs and a growing capital base, the firm has been able to drive robust revenue growth while improving margins.
Looking ahead, Brookfield is well-positioned to capitalize on some of the most promising long-term growth trends. The rising demand for artificial intelligence (AI) infrastructure, transition toward clean energy, and continued expansion of private credit are powerful catalysts for the company’s growth. Digital transformation is accelerating, and this trend creates new investment opportunities for Brookfield, particularly within digital infrastructure, such as data centres, telecom towers, and fibre networks.
Thanks to its high-quality earnings, Brookfield rewarded its shareholders with a 15% dividend increase, bringing its annual payout to $1.75 per share.
With solid secular tailwinds and strong growth prospects for 2025 and beyond, Brookfield will likely deliver solid capital gains and dividend income.
Dollarama stock
Dollarama (TSX:DOL) is another top TSX stock to buy and hold for long-term gains. It offers stability, income, and growth in all economic conditions, making it an attractive pick for consistent returns.
Dollarama’s success lies in its value pricing strategy, which ensures that consumers can always find consumable products at fixed, low prices. This affordability appeals to a broad demographic, keeping traffic steady in all economic conditions. Whether the economy is thriving or facing a downturn, Dollarama continues to perform, making it a resilient investment.
The company’s solid financial track record has driven its stock price higher over the past several years. Dollarama’s stock has surged by 301.5%, delivering an impressive average annual return of about 32%. In addition, it has returned significant cash by raising its dividend 13 times since 2011.
Looking ahead, Dollarama remains well-positioned for further growth. Its strategy of expanding its store network, maintaining competitive pricing, efficient product sourcing, and focusing on cost efficiency will continue to strengthen its financials and drive its stock higher. Moreover, its resilient bottom line will enable it to sustain future dividend increases.
Celestica stock
Celestica (TSX:CLS) is an attractive long-term investment as it offers exposure to the booming AI sector. The leading manufacturing, hardware platform, and supply chain solutions provider is thriving amid surging investment in AI data centre infrastructure, which has significantly boosted its share price.
While Celestica stock has gained significantly, the company’s growth trajectory remains robust. Its revenue is set to expand, driven by solid demand for its networking products from Hyperscaler customers within the company’s Hardware Platform Solutions (HPS) business.
Celestica’s 400G networking switches are already in high demand, and the ramp up of its next-generation 800G switches will further accelerate growth. As AI adoption scales with declining training costs, demand for networking hardware will rise, driving Celestica’s performance and growth. All of this points to a bright future for Celestica.
Further, the recovery in its industrial business and ongoing strength in the capital equipment and aerospace and defence businesses position it well to deliver solid long-term gains.
