New investors often get swept up in the excitement of temporary market trends and flashy headlines. However, when it comes to building real, lasting wealth, the most powerful strategy is still simple: buy great companies and hold them — a core principle of the Foolish Investing Philosophy.
Some businesses on the TSX aren’t just good but are built for the long term. With strong financial foundations and consistent demand for their products and services, these companies have the potential to deliver steady returns for decades. While such stocks may not spike overnight, they certainly have the potential to turn a modest investment into something truly meaningful over time.
In this article, I’ll highlight two such monster TSX stocks that could anchor your portfolio for at least the next 20 years.
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Canadian Natural Resources stock
If long-term stability and strong dividends are on your radar, Canadian Natural Resources (TSX:CNQ) might be your ideal starting point. This Calgary-based company is one of the largest oil and gas producers in the country with a strong and balanced energy portfolio.
Following the 9% rally over the last month, CNQ stock is currently trading at $44.69 per share with a market cap of $93.8 billion. It offers a generous annualized dividend yield of 5.26%, making it a solid pick for passive-income seekers.
In its most recent quarter ended in December, Canadian Natural posted an adjusted net profit of about $2 billion. For the full year, the company’s adjusted earnings came in at $7.4 billion, reflecting a dip from 2023 due to lower commodity prices, but it still managed to generate $14.9 billion in adjusted funds flow. More importantly, CNQ’s production hit record highs last year, averaging over 1.36 million barrels of oil equivalent per day.
Canadian Natural recently increased its ownership in the Albian mines and is targeting over 590,000 barrels per day from its oil sands operations with no decline in output. In addition to its low-decline, long-life assets, this kind of consistency makes CNQ a stock you could comfortably hold for decades.
Brookfield stock
Another monster TSX stock that’s built for the long haul is Brookfield Corporation (TSX:BN). The Toronto-based investment firm runs a global operation focused on asset management, wealth solutions, and owning businesses in areas like renewable power, infrastructure, and real estate.
After climbing by 39% over the past year, Brookfield stock is currently trading at $77.52 per share with a market cap of $127.5 billion. It pays a modest quarterly dividend, offering a 0.7% annualized yield.
Last year, Brookfield delivered record results as its distributable earnings before realizations rose 15% year over year to US$4.9 billion. Despite the ongoing macroeconomic challenges, this solid financial growth strength came from all corners of its business, including a big jump in wealth solutions earnings and a 17% boost in fee-related income from its asset management segment.
With $160 billion in capital ready to invest and a strong track record of smart asset sales and acquisitions, Brookfield looks like a stock that has the potential to compound your wealth for decades.
