Here Are the 3 Canadian Stocks I’d Tell a New Investor to Buy ASAP

Three beginner‑friendly Canadian stocks offer stability, growth, and compounding for long‑term investors.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published November 3, 2025 8:00 pm EST

Key Points

Hydro One provides regulated, low‑volatility earnings, steady dividend growth, and long‑term electrification‑driven infrastructure spending.
Brookfield Renewable delivers predictable cash flow, a 5% yield, and big growth potential from global renewable capacity expansion.
Constellation Software compounds returns via disciplined acquisitions, sticky mission‑critical software, and relentless reinvestment for long‑term growth.

New investors starting out can find it quite difficult to dive in. After all, how are you supposed to get into the market at a great price if you don’t know where to start? That’s why today, we’re going to look at three Canadian stocks that any new investor can comfortably pick up with a long-term horizon.

man looks surprised at investment growth — Source: Getty Images

H

Hydro One (TSX: H) is one of those rare Canadian stocks that fit new investors perfectly. As Ontario’s largest electricity transmission and distribution company, it delivers power to millions of customers across the province. Its rates and returns are approved by the Ontario Energy Board, so its earnings aren’t tied to wild swings in the economy. That stability is exactly what allows the company to pay and grow a reliable dividend, currently yielding around 2.6%. Yet what matters more is that its payout has been increasing steadily since it went public in 2015.

Hydro One also benefits from a long-term growth runway that many investors overlook. Ontario’s grid is aging and needs continual upgrades, and the province is moving toward greater electrification to support clean energy and electric vehicles. Those trends mean Hydro One will keep investing billions into its infrastructure, earning regulated returns on those projects for decades. That makes it one of the few stocks that can combine safety with reliable, modest growth.

Finally, the Canadian stock has low volatility. It doesn’t react dramatically to market news or rate changes like banks or tech stocks can. Its predictable cash flow acts as a cushion, helping steady your portfolio when markets swing. That’s important psychologically when you’re just learning how to invest, as having a stock that stays calm makes it easier to stay invested through short-term noise.

BEP

Brookfield Renewable Partners (TSX: BEP.UN) is one of the most accessible and forward-looking Canadian stocks new investors can buy right now. BEP.UN specifically focuses on renewable power, owning hydroelectric, wind, and solar facilities around the world. That global footprint and long-term contracts make its cash flow highly predictable, which is exactly what new investors should look for when starting out: a company that generates steady income from essential assets rather than relying on unpredictable trends.

One of the biggest reasons BEP.UN stands out is its exposure to one of the most powerful investment themes of our time: the global energy transition. Brookfield Renewable already produces roughly 33,000 megawatts of capacity across four continents, and its development pipeline could nearly double that over the next decade.

Another strength is its dividend. BEP.UN currently offers a yield of around 4.9%, and management has raised that payout nearly every year since inception. The Canadian stock targets annual distribution growth of 5% to 9%. Dividends like these not only provide passive income but also help teach the discipline of long-term investing, and reinvesting those payouts early can have a dramatic compounding effect over decades.

CSU

Constellation Software (TSX: CSU) might not be the first name that comes to mind for new investors, but it’s one of the best long-term Canadian stocks to buy right now. Founded by former venture capitalist Mark Leonard, the Canadian stock has quietly become one of the most successful compounders in TSX history. Its strategy is simple but powerful: it acquires small- to mid-sized software businesses that serve specialized industries, runs them efficiently, and holds them forever.

One of the biggest advantages for new investors is Constellation’s resilient business model. The Canadian stock focuses on software that supports “mission-critical” operations. These are essential tools organizations can’t live without. That makes revenue extremely sticky, with renewal rates often exceeding 90%.

Financially, Constellation is a textbook example of what long-term wealth creation looks like. Since going public in 2006, it has delivered average annual returns exceeding 30%. It reinvests its profits into new acquisitions rather than paying out large dividends, using compounding to expand its earnings base year after year. This disciplined reinvestment has created an empire worth tens of billions of dollars, all built from smaller software firms that competitors often overlook.

Bottom line

If you’re a new investor thinking long term, these three Canadian stocks are primed for the picking. Each offers massive returns in the long run, making them ideal options for any new investor’s watchlist.