2 Canadian Stocks to Buy and Hold for Life

These Canadian stocks, backed by resilient business models, have the potential to generate significant returns over time.

If you’re looking to build a resilient, long-term portfolio, focus on high-quality Canadian stocks that offer solid growth and can outperform the broader market. Diversification plays a crucial role here as it spreads your risk across sectors and companies, making your holdings more stable over time.

Furthermore, pairing this strategy with a Tax-Free Savings Account (TFSA) can amplify your real returns. Since capital gains and dividend income earned within a TFSA are not taxed, this account structure allows your investments to grow unhindered by the usual drag of taxation, which is an especially powerful advantage when compounded over years or even decades.

Against this background, here are two Canadian stocks to buy and hold for life. They have solid fundamentals and significant long-term tailwinds.

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Brookfield Asset Management 

Brookfield Asset Management (TSX: BAM) is a compelling Canadian stock to buy and hold for life. The alternative asset management company’s cash flows are supported by fee-related earnings. Moreover, approximately 95% of its fee-related revenues are derived from long-term or perpetual capital, providing a reliable stream of income that supports consistent distributable earnings.

Its investment portfolio includes infrastructure, real estate, power generation, and critical service businesses. These sectors are essential to everyday economic activity and are largely shielded from global trade volatility. Because these assets tend to serve local demand, they are less vulnerable to geopolitical shocks such as tariffs or supply chain disruptions. Many of these assets also benefit from inflation-linked revenue streams, enabling Brookfield to pass rising costs through to end users, preserving margins even in inflationary environments.

Brookfield’s early investments in sectors now experiencing massive tailwinds, such as renewable energy, data centres, semiconductor manufacturing, and nuclear power, provide a solid base for future earnings growth. These industries are seeing rapid capital inflows, which will drive Brookfield’s fee-related earnings and its share price.

It continues to deliver solid financials with Q1 fee-bearing capital climbing to $549 billion, representing a 20% year-over-year increase. This expansion drove a 26% increase in fee-related earnings and boosted distributable earnings by 20%.

Looking ahead, Brookfield aims to double its business in the medium term and expand the fee-bearing capital to $1 trillion. Furthermore, its business remains capital-light, and the company targets a dividend payout ratio of 90% or higher.

In short, Brookfield offers solid long-term growth and income potential.

Loblaw

Loblaw (TSX: L) is another solid stock to buy and hold for life. Canada’s leading food and pharmacy retailer offers stability, solid growth, and income. Despite economic uncertainty, Loblaw has continued to deliver, with its stock already up approximately 16% year-to-date. Over the past five years, Loblaw stock grew at a compound annual growth rate (CAGR) of more than 27%, translating to an impressive total capital gain of about 237%.

These gains are driven by its high-quality, defensive business model, which thrives across various market conditions.

Loblaw focuses on value, convenience, and an improved customer experience, which drives traffic regardless of economic situations. Its discount banners, No Frills and Maxi, are rapidly expanding and resonating well with budget-conscious shoppers across Canada. As the company expands its national footprint in 2025, its top-line growth is expected to remain solid.

Further, its strong push into private-label products, competitive pricing, and a broad product selection all contribute to its growing base of loyal shoppers.

The company is also investing in modernizing its supply chain and implementing automation to boost efficiency and lower costs. These moves will support stronger margins over time. Meanwhile, its omnichannel strategy and popular loyalty program give it an edge in capturing consumer data and driving smarter, more effective promotions.

Its reliable earnings, expanding store network, and consistent performance in any economic environment make Loblaw one of the most compelling long-term investments.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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