If you’re looking to build a strong, long-term investment portfolio, stocks are a great place to start. Historically, they’ve delivered better average returns than most other asset classes, making them a compelling option to create wealth over time. While markets can be volatile, staying invested in top TSX stocks through the ups and downs can be a smart strategy that pays off in the long run.
Moreover, by spreading investments across various sectors, I’d balance between growth potential and stability. Furthermore, pairing this strategy with a Tax-Free Savings Account (TFSA) can maximize returns as the account helps generate tax-free capital gains or dividend income.
Against this background, here are three top Canadian stocks I’d buy and hold forever. They have significant long-term tailwinds and are poised to deliver stellar returns.
A top Canadian AI stock
Artificial intelligence (AI) is reshaping industries, and any long-term investment portfolio should include exposure to this transformative sector. As businesses increasingly adopt AI technology, the companies powering their infrastructure are seeing tremendous growth. A standout performer in this space is Celestica (TSX:CLS), and I’d buy and hold it forever.
Over the past year, Celestica’s stock has soared over 171%, and its three-year return tops an eye-popping 1,553%. The company is experiencing strong demand from hyperscale customers for its networking switches within its Hardware Platform Solutions (HPS) business. These products are optimized for AI/machine learning (ML), hyperscale data centres, cloud computing, and high-performance computing.
Thanks to solid demand, HPS revenue nearly doubled year-over-year in Q1 2025, reaching $1 billion.
Celestica’s ability to deliver high-performance, custom-built hardware through its engineering expertise has made it a preferred partner for hyperscalers expanding their AI infrastructure. With several major contract wins, strategic investments, and a growing manufacturing base, the company is poised for sustained growth.
As AI applications scale and computing needs intensify, Celestica’s strong positioning in the AI infrastructure ecosystem makes it a compelling investment to generate significant capital gains.
A top Canadian green energy stock
The growing shift toward cleaner, more sustainable energy is accelerating, bringing significant investment and growth opportunities for investors. The declining technology costs, supportive government policies, and industry-wide digitalization are driving this transformation, setting the stage for long-term growth in the sector.
Furthermore, AI is another major growth catalyst. As AI adoption expands and workloads shift to the cloud, data centres are demanding more power – ideally, clean, cost-effective energy. This surging demand makes renewables a natural fit, positioning key players for substantial returns.
Brookfield Renewable Partners (TSX:BEP.UN) stands out in this space. With diversified renewable energy assets and a large installed base, Brookfield is well-positioned to deliver steady returns. Its revenue is largely shielded from economic cycles through long-term contracts – 90% of its capacity is contracted for an average of 14 years, and 70% of that income is indexed to inflation. Its customer base is highly diversified, minimizing risk.
With strong fundamentals and a resilient business model, Brookfield is a compelling long-term investment in the green energy boom.
A top Canadian technology stock
Canadian technology giant Shopify (TSX:SHOP) is another compelling stock I’d buy and hold forever. As global commerce shifts toward omnichannel platforms, Shopify is well-positioned to capitalize on this trend. The company is also integrating AI to streamline operations, which could further boost profitability.
Shopify’s growth is accelerating across its offline, B2B, and international operations, which bodes well for future growth. Moreover, Shopify Payments’ penetration rate is increasing as the company is expanding into new markets. These advances strengthen Shopify’s dominance in omnichannel commerce.
In Q1, Shopify posted an impressive 27% revenue jump and a 15% free cash flow margin. Notably, Q1 marked the eighth consecutive quarter of 25% or more revenue growth for Shopify. Gross Merchandise Volume (GMV) has also risen over 20% for seven straight quarters, reflecting Shopify’s ability to scale efficiently.
Despite broader economic uncertainty, the company’s expanding merchant base, global reach, and strong financials suggest resilience and long-term growth potential.
