With so many investors looking to build wealth for the long haul, dependable companies with a track record of growth and financial strength stand out. CCL Industries (TSX: CCL.B) is one of those steady performers that doesn’t make a lot of noise but keeps delivering. From record earnings to smart acquisitions, it’s a Canadian stock that long-term investors should seriously consider. So let’s look at three reasons why CCL Industries is a must-buy on the TSX today.
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Reason 1: Earnings
To start, CCL is coming off a record quarter. For the first quarter of 2025, the Canadian stock reported revenue of $1.9 billion, up 8.6% from the same time last year. Earnings per share (EPS) for Class B shares came in at $1.18, up from $1.08 the year before.
Net earnings rose to $207.4 million, and operating income reached $316.9 million. This isn’t just a blip. CCL has built a consistent growth story across decades, and it’s done so by staying focused on its core strength: packaging and labels. In a world where everything needs a label, that kind of focus pays off.
Reason 2: Cash
The second reason is its financial discipline and strong cash flow. In Q1 2025, the Canadian stock generated $39.1 million in free cash flow. That’s a big improvement from the same quarter last year, when it posted a $7 million outflow. Strong cash flow gives the Canadian stock flexibility, and CCL is putting that to work.
It recently raised its dividend by 10.3% and approved a $100 million share buyback program. These moves show confidence in its financial health and a clear commitment to rewarding shareholders. Long-term investors benefit when a company can both grow and return capital.
Reason 3: Diversification
The third reason is its global reach and diversification. CCL isn’t just one business; it operates through five main divisions. These include pressure-sensitive labels, aluminum packaging, printing products through its Avery brand, inventory and retail tags via Checkpoint, and specialty films through Innovia.
This diversification means the Canadian stock isn’t overly exposed to one product or market. In fact, it continues to expand through acquisitions, including its recent purchase of Humphreys Holdings for $5.6 million. These bolt-on deals add value and help CCL maintain its leadership position in niche markets.
Reason 4: Resilience
Beyond the numbers, what makes CCL such a solid long-term pick is its resilience. Even in tougher economic conditions, its products remain in demand. From personal care and food labels to healthcare and industrial applications, packaging isn’t going away.
It also benefits from scale. As one of the largest label and packaging firms in the world, CCL can offer efficiencies and innovations that smaller competitors can’t match.
Reason 5: Momentum
Finally, shares of CCL have been gaining momentum. Over the past year, the stock is up roughly 12%, and over three years it has returned nearly 40%. Analysts remain bullish, with most ratings pointing to a strong buy and price targets that suggest continued upside.
At around $70 per share today, the Canadian stock still trades at a reasonable valuation given its earnings growth and market position. Plus, investors can add in a juicy dividend. One that would bring in $327.68 annually from a $20,000 investment!
| COMPANY | RECENT PRICE | SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| CCL.B | $77.88 | 256 | $1.28 | $327.68 | Quarterly | $19,934.00 |
Bottom line
What makes CCL especially appealing for a Tax-Free Savings Account (TFSA) is the mix of income and growth. The stock offers a dividend that grows steadily, without sacrificing reinvestment into the business. That creates a compounding effect over time. And because the specialty packager is in a non-cyclical sector with recurring demand, it adds some defensive balance to a portfolio that may have exposure to more volatile sectors.
For long-term investors looking for a business that can weather ups and downs, CCL Industries is worth a close look. It isn’t flashy, but it’s reliable. And sometimes, the best investments are the ones that quietly keep growing year after year. With strong earnings, consistent dividends, and global reach, CCL is one of those rare Canadian stocks that can anchor a portfolio for decades.
