3 Canadian Multi-Sector Stocks to Buy and Hold for Built-In Diversification

Here are three of the best dividend-paying Canadian stocks with built-in diversification.

Keeping up with dozens of stocks, earnings reports, and sector rotations can feel like a full-time job. That’s why I love multi-sector stocks, as they do the heavy lifting for you. In Canada, there are a few fundamentally strong stocks that give you exposure to multiple industries, all in one ticker. If you own one of them, you’d hold everything from banking and utilities to industrials or real estate. It’s like having a mini-ETF (exchange-traded fund) but with the growth potential of a blue-chip stock.

In this article, let’s look at three such Canadian multi-sector stocks you can buy and hold forever for built-in diversification and peace of mind.

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Brookfield Corporation stock

And speaking of heavy lifting, Brookfield Corporation (TSX: BN) might just be one of the most diversified names on the TSX. This Toronto-based investment giant operates across sectors like renewable energy, infrastructure, private equity, real estate, and even insurance. BN stock is currently trading at $65.54 per share with a market cap of $108 billion and offers a modest 0.8% annualized dividend yield.

In 2024, Brookfield reported a record adjusted net profit of US$6.3 billion, up 31% YoY (year over year). This strong growth was mainly fueled by strong inflows into its asset management arm and big growth in its wealth solutions business — especially following its acquisition of American Equity Life. These solid results also encouraged management to hike its quarterly dividend by 13%.

With US$160 billion in deployable capital, Brookfield continues to keep an eye on opportunities across global markets. Whether it’s scaling up its credit platform or locking in long-term infrastructure deals, BN stock gives you built-in diversification.

Power Corporation of Canada stock

That brings us to Power Corporation of Canada (TSX: POW), another top Canadian stock that gives you a front-row seat to multiple sectors. This Montreal-based holding firm operates in insurance, wealth management, retirement solutions, and even alternative investments through names like Great-West Lifeco and IGM Financial. POW stock is currently trading at $48.80 per share with a market cap of $28.7 billion, and it offers a solid 5% annualized dividend yield.

In the fourth quarter of 2024, Power Corporation’s adjusted net profit climbed 43% YoY to $829 million. That boost came mainly from higher contributions by its major holdings — especially Lifeco, which continued to post record results. IGM Financial also saw improved adjusted earnings with strong asset growth and improved margins.

Notably, Power Corporation recently hiked its dividend by 9%, repurchased over 10 million shares, and even struck new strategic partnerships through its Sagard platform. All this shows how this diversified company continues to boost its long-term growth outlook.

Fairfax Financial stock

Rounding out the trio is Fairfax Financial (TSX: FFH) — a top stock that deserves a place in a well-diversified portfolio. This Toronto-based firm spans property and casualty insurance, reinsurance, and investment management. In addition, it holds interests in non-insurance businesses like Sleep Country and sports brand Peak Achievement. FFH stock is currently trading at $1,936.74 per share with a market cap of $43.8 billion, and it pays an annual dividend yield of 1.1%.

While Fairfax’s net earnings dipped by 24% YoY to US$3.9 billion in 2024, that’s not the full story. The drop was largely tied to unrealized bond losses caused by rising interest rates and foreign currency translation losses. But on the flip side, the company also reported a record underwriting profit of US$1.8 billion and a combined ratio of 92.7%, which means its insurance business stayed efficient even amid higher catastrophe claims.

In addition to its strong financial position, Fairfax’s continued focus on quality acquisitions brightens its long-term growth outlook, making it an attractive stock with built-in diversification.

Fool contributor Jitendra Parashar has positions in Brookfield. The Motley Fool has positions in and recommends Brookfield and Fairfax Financial. The Motley Fool recommends Brookfield Corporation. The Motley Fool has a disclosure policy.

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