2025 is almost up, but it is never too late to start building a portfolio of Canadian stocks. If you are looking for some diversification, here are five long-term stocks to buy and hold with $500.
Source: Getty Images
WSP Global: A Canadian engineering giant
WSP Global (TSX: WSP) has been an excellent long-term Canadian stock. Even after pulling back 11.5% this month, WSP stock is still up 114% in the past five years and 588% in the past 10 years.
WSP is a serial acquirer of engineering and advisory businesses. The last couple of years have seen it make some big moves in environmental, infrastructure, and power.
In its recent quarter, backlog hit $16.4 billion or 10.9 months of forward revenue. It delivered record margins and generated strong free cash flow.
The pullback is a great time to pick up this Canadian stock at a multi-year low valuation.
Descartes: A top Canadian software stock
Descartes Systems (TSX: DSG) is another Canadian stock that looks like an attractive add. Its stock is down 30% this year. It is trading at its lowest valuation since 2019.
The company provides essential software for the supply chain, logistics, and transport sectors. Its services garner high recurring revenues, strong profit margins, and generate huge free cash flows.
Descartes has over $230 million of net cash on its balance sheet. It’s in a great position to continue its 10-15% long-term growth trajectory. It isn’t the cheapest stock, but it is certainly more attractive now.
Calian: Big tailwinds supporting growth
Calian Group (TSX: CGY) is definitely the value pick in this mix. This Canadian stock only trades with a price-to-earnings ratio of 12. After a few years of disappointing results, its outlook is rapidly improving.
More than 50% of Calian’s income comes from its defence and space operations. It is a major supplier of medical, training, and ground sat services to the Canadian military. However, Europe has been a large region of growth, especially given the Ukraine-Russia war.
With Canada promising big spending on defence in the coming years, Calian could be due for its share of growth. It just announced a very strong fourth quarter. Even after recently climbing 12%, its stock is still very cheap.
Exchange Income: A top Canadian stock for income and growth
If you want some income in your portfolio, Exchange Income Corp. (TSX: EIF) looks interesting. Like Calian, Exchange has some significant aviation operations across remote, northern regions in Canada.
Its services are essential (firefighting, medivac, freight, defence/surveillance, and passenger) to the communities it serves. It also has an industrial segment that should benefit from Canada’s big infrastructure investments in the years ahead.
Exchange has grown revenues and earnings by a mid-teens rate in 2025. 2026 is looking to be a similarly robust year. Exchange pays a 3.5% dividend, so investors get paid to be patient with this Canadian stock.
Waste Connections: A utility-like business for the decades ahead
Waste Connections (TSX: WCN) is an ideal Canadian stock for the long term. Its stock is up. As the global population rises, humans should only produce more waste. Companies like Waste Connection are likely to continue being very busy for many years to come.
Waste Connections focuses on niche markets where it has limited competition. This has provided it with very good pricing power through a mix of economic scenarios.
This may not be the fastest-growing business, but it is relatively low risk. Its stock recently dipped, so it could be a nice time to add for a long-term hold.
