2 Top TSX Stocks to Buy Now and Hold Forever

Long-term Foolish investing partly depends on identifying stocks with durable competitive advantages, strong balance sheets, and the ability to compound returns over time. Despite macroeconomic headwinds in 2025, including global trade disruption and uncertain monetary policy direction, some TSX-listed companies continue to display those qualities. These businesses offer not only potential for long-term capital appreciation but also dividend stability — making them ideal candidates for a buy-and-hold-forever strategy.

In this article, let’s look at two top “forever stocks” listed on the TSX with robust business models, attractive dividends, and growth trajectories.

Suncor Energy stock

Suncor Energy (TSX: SU) could be an amazing stock for long-term investors to consider in 2025. This Calgary-based integrated energy firm is a heavyweight in the oil and gas space, involved in everything from oil sands production to refining and retail fuel through its Petro-Canada network.

SU stock currently trades at $48.96 per share with a market cap of $60.6 billion. And for income-focused investors, it pays out a 4.7% annualized dividend yield, with quarterly payouts.

In the fourth quarter of 2024, Suncor delivered record upstream production at 875,000 barrels per day, helping to boost sales despite some headwinds in refining margins.

Despite that, however, the company’s revenue for the quarter slipped 11.6% YoY (year over year) to $12.5 billion, mainly because of softer refined product prices and higher royalty payments on heavy crude. Its adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) margin was also down from a year ago, reflecting the cost pressure from those same factors.

Still, Suncor pulled in a free funds flow of $1.9 billion, which helped it return a whopping $1.7 billion to shareholders through a mix of dividends and share buybacks.

In recent years, Suncor has increased its focus on strategic upgrades. These moves include a new cogeneration facility that lowers both emissions and costs at its oil sands base. Given these strong fundamentals, Suncor has the potential to continue rewarding investors with increasing dividends for many more years.

Royal Bank of Canada stock

Another TSX stock that fits right into the “forever stocks” category is Royal Bank of Canada (TSX: RY). This banking giant doesn’t just dominate Canada’s financial sector but also serves millions across the U.S. and 27 other countries.

With a current stock price of $163.03 per share and a massive market cap of $230 billion, RY stock also pays out an annualized dividend yield of 3.6% through quarterly distributions.

In the quarter ended January 2025, Royal Bank’s adjusted net profit rose 29% YoY to $5.3 billion. That jump was mainly fueled by stronger fee-based revenue in Wealth Management and solid performances in both Capital Markets and Personal Banking segments. As a result, the largest Canadian bank’s adjusted quarterly earnings climbed by 27% YoY to $3.62 per share. Notably, the recent inclusion of HSBC Canada added $214 million to net profit in the quarter alone.

Whether it’s investing in technology, expanding through acquisitions, or returning capital to shareholders, Royal Bank shows strength and resilience for the years ahead.