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.
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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.
