If you think building wealth from the TSX is about constantly trading or finding the next big thing, you might be missing the real magic. Long-term investing works best when it’s simple and focused. With $20,000 at your disposal today, the question isn’t how fast you can grow it – it’s how smartly you can put it to work.
Before I highlight two such top TSX stocks to buy now, let me walk you through how to make that $20,000 work harder over the long term.
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How to make your investment work harder in the long run
One of the smart ways to grow your investment over time is by focusing on quality. This simply means putting your money into businesses with strong balance sheets, dependable earnings, and a proven ability to navigate both good times and bad. Every extra day your money stays invested in the right place adds a little more to your future returns.
Another important part of making your investment work harder is diversification. You want your money spread across different sectors and industries so it’s not all riding on one trend or one company. In this way, some parts of your portfolio will do better than others at different times but that balance could help you grow reliably without getting shaken by short-term market moves.
Now, let me quickly highlight two top TSX stocks that could help you achieve that kind of growth.
Canadian Utilities stock
A top stock that fits well into a long-term investing approach is Canadian Utilities (TSX: CU). This Calgary-based firm operates in the energy infrastructure space, offering electricity and natural gas transmission, clean energy storage, and utility services across Canada and Australia.
CU stock has climbed nearly 24.5% over the last year to currently trade at $37.91 per share, giving it a market cap of about $7.8 billion. Long-term investors looking for income will definitely appreciate its 4.8% annualized dividend yield, paid quarterly.
In the first quarter of 2025, Canadian Utilities delivered a 3% YoY (year-over-year) increase in its adjusted net profit to $232 million and invested over $400 million into growth projects, mainly across its regulated businesses. With its focus on major projects, CU stock continues to plant seeds for future growth, which long-term investors love.
Brookfield Infrastructure stock
Another solid pick for a long-term portfolio is Brookfield Infrastructure Partners (TSX: BIP.UN). This global infrastructure giant runs essential assets like pipelines, toll roads, utilities, and data centers across several continents.
Brookfield Infrastructure stock has climbed 19.3% in the last 12 months and is now trading at $45 per share with a market cap of about $20.8 billion. It also offers a healthy 5.3% annualized dividend yield.
In the first quarter, it posted a 5% YoY increase in its funds from operations to US$646 million, with strong contributions from its data and midstream segments. Despite some currency headwinds and higher borrowing costs, the business continues to generate reliable cash flow backed by inflation-linked contracts.
For patient investors, Brookfield Infrastructure stock could keep delivering stable income and long-term growth, especially with its ongoing focus on investments and strong capital recycling strategy.
