Economists believe a weakening economy and softening jobs market prompted the Bank of Canada’s (BOC) rate cut on September 17, 2025. The governing council thought the cut rate was appropriate to balance the risks going forward. However, BOC governor Tiff Macklem said, “Considerable uncertainty remains.”
Canada’s main stock market responded favourably to the rate reduction. The TSX rose the day after and then finished the week at a new record high. Meanwhile, investors in National Bank of Canada (TSX:NA) and TC Energy (TSX:TRP) are untroubled by Macklem’s warning. They are confident owning these two buy-and-hold Canadian stocks.
Investing in business growth
National Bank of Canada, the country’s sixth-largest bank, acquired the Canadian Western Bank in February this year. It is a combination of two complementary banks with growing businesses. The integration is ongoing, and once complete, the $58.8 billion bank expects to realize $270 million in cost savings by 2027.
Its president and CEO, Laurent Ferreira, said during the recent conference call, “With strong capital levels and a disciplined approach to credit and efficiency, we will continue to execute our CWB integration plan while investing in business growth.”
In the third quarter (Q3) of fiscal 2025 (three months ending July 31, 2025), total revenue and net income increased 15.1% and 3% to $3.4 billion and $1.1 billion, respectively, compared to Q3 fiscal 2024. NA’s U.S. Specialty Finance & International and Wealth Management segments reported the largest income growth, 12% and 13% year over year, respectively. The provision for credit losses (PCL) rose 36.2% to $203 million from a year ago.
NA has consistently paid quarterly dividends since 2003 and has increased payments in the last ten years. The payouts are well covered by earnings, evidenced by the 44.9% payout ratio. As of this writing, the share price is $152, while the dividend yield is 3.14%. Current investors are up 18.11% year to date.
Unprecedented demand
TC Energy decided to separate its liquids pipeline business to concentrate on natural gas, storage, transportation, and power generation businesses. South Bow Corporation, the new entity from the spinoff, will operate the crude oil pipeline systems.
TRP stands out as a solid pick for long-term investors. The large-cap energy stock has increased its dividend annually since 2000, with a projected annual growth rate of 3% to 5% for the future. Current investors feast on the 4.69% dividend. The share price is $72.46 (+10.93% year to date) if you invest today.
The $75.5 billion natural gas and power company plans to capitalize on the surging demand for natural gas in North America. TC Energy targets high-grade projects and signs rate-regulation and/or take-or-pay contracts with investment-grade counterparties.
Besides announcing $4.5 billion in new growth projects over the last nine months, TC Energy will place approximately $8.5 billion of capital projects into service this year. Its president and CEO, François Poirier, said, “Compelling fundamentals are unlocking further growth opportunities across our North American portfolio.”
In the first half of 2025, net income increased 2.7% year over year to $1.8 billion. Poirier notes the unprecedented demand across multiple end-use sectors. With a robust origination pipeline, TC Energy expects volume and scale of opportunities to continue growing.
For keeps
National Bank of Canada and TC Energy have positive factors to suggest that you can hold the stocks forever. Despite considerable uncertainty ahead, you can purchase one or both and drown out the market noise.
