The current investment landscape is challenging to navigate due to persisting trade tensions and the ever-present threat of military conflict. However, adopting a long-term perspective can effectively counter market turbulence, compound earnings, and generate better returns.
Stocks have historically outperformed most asset classes. In this context, I’d pick National Bank of Canada (TSX: NA) and Suncor Energy (TSX: SU) as my core holdings. The former is a highly regarded big bank, while the latter is an oil bellwether. Both Canadian stocks are strong long-term investment options.
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Structural competitive advantage
Turning first to NA, this large-cap stock is known for stability and consistent dividends, backed by Canada’s strong regulatory framework. This $56.1 billion bank ranks sixth in terms of size or market capitalization. It trades at $144.77 per share (+12.49% year to date), with a yield of 3.29%.
The recent acquisition of Canadian Western Bank marks a strategic move, as well as an ongoing consolidation in the banking industry. It followed Royal Bank of Canada’s buyout of HSBC Bank Canada. Large or dominant banks need to maintain structural competitive advantages over smaller lenders.
With an expanded franchise, NA expects to generate higher returns than its peers, focusing on international banking. Interestingly, the bank experienced a surge in trading revenue in the second quarter (Q2) of fiscal 2025, notwithstanding a tariff-induced market volatility. The Financial Markets division saw its revenue and net income jump 62% and 56% year over year to $1.1 billion and $501 million.
Étienne Dubuc, division head, said, “These were very good trading conditions.” He noted it was also the franchise’s most profitable days after U.S. president Donald Trump’s Liberation Day.
Oil bellwether
Shifting focus to the energy sector, Suncor Energy is a key industry player, with a significant ownership in oil sands resources. The $66.1 billion integrated energy company also operates refineries in Canada and the U.S., where crude oil is converted into various products. Its subsidiary, Petro Canada, boasts a network of gas stations in the fuel market.
The oil bellwether incurred significant losses in 2020 during the global pandemic and oil price war, but took bold steps that enabled a swift return to profitability. The stock rebounded, as evidenced by its +212.2% overall return or 25.54% compound annual growth rate (CAGR) over a five-year period.
On August 5, 2025, Suncor reported record Q2 2025 upstream production of 808,000 barrels per day (bbl/d) and record first-half production of 831,000 bbl/d. Refinery throughput also reached record levels in the same periods, 442,000 bbl/d and 462,000 bbl/d, respectively. Net earnings declined 27.7% year over year to $1.1 billion due to weaker benchmark crude prices.
Nevertheless, its president and CEO, Rich Kruger, said the second-quarter and first-half volumes results position Suncor extremely well for a strong second half of the year. Due to strong execution performance and capital discipline amid a volatile business environment, management has trimmed this year’s capital spend to $5.7-$5.9 billion, down from $6.1 billion.
As of this writing, SU trades at $54.05 per share (+7.7% year to date) and pays a 4.23% dividend.
Long-term income pillars
In summary, National Bank of Canada and Suncor Energy are well-managed entities that have demonstrated resilience over the years, including market storms. Investing in this pair of long-term income pillars can position you for lasting prosperity.
