It’s always better to stick with long-term winners when it comes to investing. And the great news is that Canada has many such fundamentally strong companies that not only have solid roots but are also constantly growing and expanding.
In this article, I’ll talk about three such Canadian stocks and tell you why they deserve a permanent place in your portfolio.
Source: Getty Images
Magna International stock
One Canadian stock that truly fits the long-term Foolish investing approach is Magna International (TSX: MG). Being a top auto parts maker, it manufactures everything from car seats and chassis to complete vehicle assemblies.
After rallying by over 50% in the last six months, MG stock currently trades at $69.01 per share. At this market price, it has a market cap of $19.4 billion and a quarterly dividend yield of 3.9%.
The recent rebound in Magna stock is mainly driven by a broader recovery in the auto sector and its improving earnings momentum. In its third quarter, the company posted nearly a 2% YoY (year-over-year) increase in its total revenue to US$10.46 billion, despite a slight sequential dip due to production timing.
During the quarter, its adjusted earnings also moved 4% higher from a year ago to US$1.33 per share due to better operational efficiency.
Recently, Magna raised its full-year outlook and now expects to deliver strong free cash flow in the final quarter, which could help its share price keep climbing. In addition, its push into electric vehicle (EV) components and focus on efficiency across global operations make it a great stock to hold for years to come.
Waste Connections stock
The second buy-and-hold stock in my list right now is Waste Connections (TSX: WCN), which offers waste collection and recycling services across the U.S. and Canada. Though based in Texas, it’s listed on the TSX and serves millions of customers in North America.
WCN stock currently trades at $237.75 per share with a market cap of $60.9 billion, and offers a small but reliable dividend yield of 0.8%.
Despite the ongoing macroeconomic uncertainties, the company’s fundamentals remain strong. In the September quarter, Waste Connections delivered a 5% YoY rise in its revenue to US$2.46 billion. Higher revenue, coupled with better pricing and cost control, drove its adjusted quarterly net profit up by 6% YoY to US$372 million.
With more than US$300 million in revenue-accretive acquisitions already completed or underway this year, and continued gains in operating efficiency, this waste management stock remains a dependable pick for investors focused on stability and consistent returns.
Brookfield stock
Lastly, Brookfield’s (TSX: BN) scale and focus on smart capital deployment make it a really great choice for long-term investors. As a global investment giant based in Toronto, it has an interest in several sectors, including renewable energy, infrastructure, real estate, and private equity.
Following the 26% rally in the last six months, BN stock now trades at $64.21 per share with a market cap of $159 billion, offering an annual yield of 0.5%.
While Brookfield is yet to release its third-quarter results, it posted a strong US$1.3 billion in distributable earnings before realizations in the second quarter, up 13% YoY. This growth was primarily led by the monetization of assets and solid contributions from its asset management and wealth divisions.
Interestingly, Brookfield is sitting on US$177 billion in deployable funds, which gives it enough flexibility to act on market opportunities as they arise.
Overall, its long track record of delivering double-digit returns and a strong pipeline of future growth projects make Brookfield one of those rare stocks you can confidently hold for decades.
