When you’re considering putting around $10,000 to work for the future, it’s wise to look at Canadian stocks with a proven track record of growth and resilience. These two Canadian powerhouses operate in distinct yet resilient sectors. This could make them compelling choices for a buy-and-hold strategy.
BAM stock
Brookfield Asset Management (TSX:BAM) stands out as a truly global player in the alternative asset management space. The vast portfolio spans diverse and essential infrastructure assets. These include renewable energy projects, transportation networks, data centres, and communication towers. It also has significant holdings in real estate, private equity, and credit. This diversification across various asset classes and geographies can provide a degree of insulation against sector-specific or regional economic downturns. Its ability to attract and manage substantial capital speaks to its strong reputation and expertise in the field. This is seen by the over US$1 trillion in assets under management by the end of 2024.
The latest financial results for Brookfield underscore this continued growth trajectory. The 17% year-over-year increase in fee-related earnings in the fourth quarter of 2024, reaching US$677 million, highlights its success in expanding its client base and the amount of capital it manages. The total fee-related earnings of approximately US$2.5 billion for 2024 further solidify this positive trend. This consistent growth in earnings suggests that Brookfield is effectively capitalizing on the increasing demand for alternative investments from institutional investors and high-net-worth individuals globally.
Waste Connections
Waste Connections (TSX:WCN) operates in a sector that is often considered recession-resistant. Regardless of the economic climate, the need for waste management services remains constant. From residential garbage collection to commercial and industrial waste disposal, these services are fundamental to public health and environmental sustainability. Waste Connections has built a strong network of collection operations, transfer stations, landfills, and recycling facilities across North America. The integrated business model allows them to capture value across the entire waste management value chain.
The financial performance of Waste Connections in 2024 reflects the stability and growth potential of this sector. Reporting full-year revenues of US$8.92 billion, an increase of over 11% from the previous year, demonstrates their ability to expand the business organically and through strategic acquisitions. The adjusted net income of US$1.239 billion for the year further highlights their profitability. The fourth-quarter 2024 revenues of US$2.26 billion, showing continued growth from the prior year, indicate that positive momentum is being sustained. The essential nature of its services provides a reliable revenue stream, and its focus on operational efficiency and strategic acquisitions has contributed to its consistent growth in both revenue and profitability.
Foolish takeaway
The long-term investment outlook for both Brookfield Asset Management and Waste Connections rests on the fundamental drivers within their respective industries. The demand for alternative investments, particularly in infrastructure and renewable energy, is expected to continue growing as the global economy evolves and the need for sustainable development intensifies. Brookfield’s expertise and global reach position them well to capitalize on these trends. Similarly, the waste management sector is underpinned by population growth, urbanization, and increasing environmental regulations. These all contribute to a steady and growing demand for Waste Connections’s services.
