There are several factors investors should look for when deciding which stocks to hold for the next 10, 20, or even 30 years. While resilience and a solid stream of dividend income are important, long-term growth potential can’t be left out of the mix. And the great news is that some Canadian large-cap stocks offer a rare mix of dependable dividends and long-term upside, making them ideal candidates for buy-and-hold investors.
In this article, I’ll highlight two such fundamentally strong, large-cap stocks to buy now that could offer consistent returns for decades.
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Magna International stock
Let’s begin with Magna International (TSX: MG), an auto parts giant that’s quietly surging in the second half of 2025 with solid financial execution. As one of the world’s largest auto parts suppliers, this Aurora-based company operates in 28 countries and works with top global automakers. Its wide range of products includes body structures, seating systems, powertrains, and vehicle assembly.
MG stock has bounced back sharply in recent months to currently trade at $69.26 per share, giving it a market cap of around $19.5 billion. At this market price, it offers a 3.9% annualized dividend yield, paid quarterly. Interestingly, the stock has climbed more than 51% over the last six months, as investors seem to be taking notice of its improving financials and clearer growth outlook.
In the third quarter, Magna posted a 2% YoY (year-over-year) increase in its revenue to US$10.5 billion. This growth was mainly driven by new program launches and higher global vehicle production. Ongoing productivity gains, better cost control, and stronger margins also helped the company post a 4% YoY rise in its adjusted quarterly earnings to US$1.33 per share.
Encouraged by strong results, Magna raised its full-year outlook for sales, EBIT (earnings before interest and taxes) margin, and adjusted net profit, which could be seen as a clear sign of confidence in its ability to execute going forward.
Beyond its strong quarter, Magna is continuing to focus on long-term growth through investments in electrification, automation, and mobility technologies. Overall, with a healthy balance sheet, stable dividend payouts, and a long runway for tech innovation in the automotive space, MG stock looks like one of the top large-cap stocks to buy and hold through the next decade and beyond.
Canadian National Railway stock
Canadian National Railway (TSX: CNR), or CN, is another smart large-cap pick for long-term investors. Notably, this transportation giant has been moving goods across North America for more than a century and still plays a crucial role in the Canadian and U.S. supply chains. Its 20,000-mile rail network connects key ports and cities.
CN stock is trading at $134.40 per share, with a market cap of around $84.2 billion. Currently, it offers a 2.6% annualized dividend yield. While the stock has slid 11% over the past year, the company’s latest results clearly showed that its business remains strong under the hood.
In the third quarter, CN’s revenue rose 1% YoY to $4.17 billion, boosting its net profit by 5% YoY to $1.14 billion. Meanwhile, the company also managed to improve its operating ratio to 61.4%, a key efficiency metric in the rail industry. Strong cost discipline, higher train speeds, and better fuel efficiency were three main factors that helped the company achieve better performance.
CN now expects to post mid- to high single-digit earnings-per-share growth in 2025 and plans to lower capital spending to $2.8 billion in 2026 to support stronger free cash flow. As one of Canada’s most essential infrastructure players, it continues to be a reliable large-cap stock for long-term investors seeking a mix of income and slow-but-consistent growth.
