Investors need to dig deep into an investment because a stock’s surface story rarely tells the whole truth. A Canadian stock might look cheap, exciting, or high-yielding at first glance, but only a closer look at its cash flow, debt, competitive position, and long-term prospects reveals whether the business can actually grow, pay its bills, and reward shareholders over time.
By going beyond the stock chart and into the fundamentals, investors can avoid traps, spot genuine opportunities, and build confidence in every decision they make. Which is why today, we’re looking at why Badger Infrastructure Solutions (TSX:BDGI) could be a top option.
1. Essential
Badger is one of those rare Canadian industrial companies that grows quietly in the background while building a competitive moat that gets stronger with time. The essential nature of its business is why it’s a solid buy and hold. Badger is North America’s largest provider of non-destructive hydrovac excavation, a service used in construction, utilities, energy, telecommunications, and municipal projects.
As cities expand, fibre networks grow, and utilities upgrade aging infrastructure, the need for safe digging increases every single year. Hydrovac isn’t a fad, but a fundamental step in nearly every major project, and Badger remains the dominant and most trusted brand in the space.
2. Moat
A second long-term strength is Badger’s wide moat and scale advantage. Hydrovac excavation looks simple from the outside, but running the largest fleet in North America, maintaining consistent safety standards, and deploying trucks efficiently across dozens of regions takes enormous operational expertise.
Smaller competitors can’t match Badger’s reliability, fleet size, or training systems. This lets Badger win recurring contracts with major utilities, telecoms, municipalities, and engineering firms. These are customers who value reliability more than price. That scale advantage only compounds over time, making it harder for anyone to challenge its leadership position.
3. Stability
The third major reason to hold BDGI forever is its steady, recession-resistant cash flow. Even in economic downturns, utilities must repair, maintain, and upgrade infrastructure. Roads, pipelines, sewers, power grids, and fibre networks don’t stop aging because the economy slows.
In fact, governments often accelerate infrastructure spending during weak periods to stimulate growth. Badger benefits from this counter-cyclical support, which helps its revenue stay resilient through downturns. Paired with disciplined cost control, this gives the Canadian stock a strong base of free cash flow that supports reinvestment and dividends.
4. Growth
A fourth long-term reason is BDGI’s long runway for growth across North America. Despite being the biggest in its field, Badger still has room to expand because hydrovac adoption continues to grow as safety and regulatory standards tighten. Many U.S. regions still rely heavily on mechanical digging, leaving decades of catch-up ahead.
Badger has repeatedly shown it can enter new markets, scale up its model, and achieve profitable density as it builds local fleets. With urbanization, renewable energy projects, electric vehicle charging expansions, and broadband rollouts accelerating, Badger sits at the centre of some of the biggest multi-decade infrastructure themes.
5. Conservative
Finally, Badger is a strong candidate for lifelong holding because of management discipline and shareholder-focused execution. The Canadian stock takes a conservative approach to debt, prioritizes return on invested capital, and grows its fleet methodically rather than chasing risky expansion.
Its leadership has consistently reinvested in training, fleet modernization, and technology to keep margins strong and customer safety high. Combined with a steady dividend and the potential for long-term compounding, BDGI offers the kind of durable, essential-service growth that can anchor a portfolio for decades.
Bottom line
If you’re an investor looking for a long-term hold, Badger certainly is one of the Canadian stocks to consider. In fact, from its dividend alone, here is what $7,000 could bring in today.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| BDGI | $71.19 | 98 | $0.75 | $73.50 | Quarterly | $6,976.62 |
All considered, any one of these reasons could be a good one for investors to buy and hold Badger. Yet combined? That’s what makes this stock a top option on the TSX today.
