1 Canadian Stock Perfect to Buy and Hold Forever for AI Exposure

This AI stock checks all the boxes, which is exactly why investors need to pay attention.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published April 22, 2025 8:45 pm EDT

In the constantly shifting technology sector, the search for a stock combining stability with long-term growth and exposure to artificial intelligence (AI) can feel impossible. However, OpenText (TSX:OTEX) emerges as a particularly compelling and noteworthy choice. That’s especially true for investors looking to add a robust and well-established AI player to their Tax-Free Savings Account (TFSA). This Canadian AI stock has positioned itself as a key player in the global information management arena.

Concept of big data flow, analysis, and visualizing complex information for artificial intelligence — Source: Getty Images

About OpenText

OpenText is recognized as a leading global provider of a comprehensive suite of information management solutions. The AI stock offers an extensive range of products to effectively manage, securely protect, and strategically leverage the ever-growing volumes of critical data. Today’s business environment needs data-driven decision-making for achieving a competitive edge and driving innovation. Therefore, OpenText’s diverse array of services and solutions are more relevant and in demand than ever before.

A particularly significant aspect of OpenText’s investment appeal lies in its proactive and strategic focus on deeply integrating the capabilities of AI. The AI stock is actively developing and deploying a range of innovative AI-powered tools. These are specifically designed to enhance its comprehensive suite of cybersecurity solutions. These advanced AI-driven tools provide clients with sophisticated capabilities for advanced threat detection. This enables it to identify and neutralize potential security risks with greater speed and accuracy.

The numbers

From a financial standpoint, OpenText has demonstrated a commendable level of resilience and a consistent pattern of growth over time. In its second quarter of the 2025 fiscal year, the AI stock reported revenues totalling approximately US$1.3 billion. While this revenue figure represented a modest year-over-year decline, it is essential for investors to consider the broader macroeconomic context. The AI stock is investing in the future, which can sometimes have a short-term impact on revenue figures.

The AI stock’s commitment to returning value directly to its shareholders is clearly evident through its established and consistent dividend policy. OpenText offers a dividend yield that is generally considered to be competitive within the broader technology sector. This provides investors who hold the AI stock with a steady and recurring stream of income. This aspect of the investment proposition makes OpenText particularly attractive for Canadian investors who are looking to maximize the tax-free benefits offered by their Tax-Free Savings Accounts (TFSAs).

Future outlook

Looking towards the future, OpenText’s growth prospects appear to be further bolstered by its continuous and strategic investments in both artificial intelligence and cutting-edge cloud technologies. The AI stock’s recent initiatives include actively expanding its AI capabilities to offer even more personalized, intelligent, and efficient solutions to its diverse range of clients. These ongoing technological advancements are widely expected to drive increased customer satisfaction for more growth in the years to come.

Moreover, OpenText’s strategic and well-executed acquisitions of complementary businesses and technologies have played a crucial role in enhancing its product portfolio and market reach. By thoughtfully integrating these complementary technologies and services into its existing offerings, the AI stock has positioned itself to address customer needs across various industries. This has opened up new and significant revenue streams and solidifies its position as a leading player in the information management space.

Bottom line

OpenText presents a well-balanced and potentially rewarding investment opportunity for Canadian investors. Its has a strong and established foundation in the critical field of information management. Furthermore, the software firm has taken a proactive and forward-thinking approach to integration of AI technologies across its product suite. Finally, OTEX offers a commitment to returning value to its shareholders through dividends. This all makes it an AI stock that is certainly worth considering for long-term holding within a Tax-Free Savings Account.