TSX giants are buy-and-hold picks for decades. They are the companies Canadians rely on every single day such as the banks that run our financial system, the utilities that keep the lights on, the pipelines that move our energy, and the telecoms that keep us connected. Such businesses don’t disappear in recessions or booms. These growth stocks generate steady cash flow year after year, which fuels reliable dividends and long-term growth.
Furthermore, because they have massive customer bases, strong competitive moats, and decades of proven stability, these growth stocks let investors compound wealth quietly in the background. Holding these giants for the long haul means you get the comfort of consistency, the upside of rising payouts, and the peace of mind that these companies have already survived and thrived through everything the market has thrown at them.
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ZGQ
BMO MSCI Al Country World High Quality Leaders ETF (TSX:ZGQ) is a Canadian-listed global equity fund designed to give investors exposure to high-quality companies. They are growth stocks with strong balance sheets, stable earnings, and superior profitability. It tracks the MSCI World High Quality Index, meaning it holds industry leaders across the U.S., Europe, and Asia. These are companies known for durable competitive advantages and consistent long-term growth. With low turnover and a rules-based approach, ZGQ offers an easy way for Canadians to own a diversified basket of global blue-chip stocks. All without the volatility that comes from chasing trends or lower-quality names.
ZGQ’s performance depends on the earnings strength of the high-quality global companies inside the portfolio. The fund has benefited from strong earnings growth among its core holdings over recent periods, particularly U.S. tech, healthcare, and consumer staples giants. This has led to steady increases in net asset value. The exchange-traded fund (ETF) has also maintained a modest but reliable distribution supported by the underlying dividend payments from its global constituents.
ZQG is a long-term giant focusing on companies with the characteristics that consistently outperform across decades. That means high returns on equity, low debt, stable earnings, and strong competitive moats. These are growth stocks that weather recessions better, compound growth steadily, and support reliable dividend income year after year. For Canadian investors looking for hands-off global diversification, ZQG removes the guesswork by automatically keeping only the strongest, most financially healthy companies in the world.
HPS.A
Hammond Power Solutions (TSX:HPS.A) is a Canadian-based engineering and manufacturing firm. It specializes in custom electrical transformers and power systems used across industrial, infrastructure, renewable-energy, and data-centre applications worldwide. Unlike commodity producers sensitive to cyclic swings, Hammond builds essential infrastructure hardware that powers critical systems. That’s everything from electrical grids to artificial intelligence (AI) data centres, giving it exposure to long-term electrification and global infrastructure tailwinds.
In its latest financial reporting period, Hammond delivered a rebound in revenue and profitability, driven largely by increased demand from data-centre operators, renewable energy customers, and industrial clients. Demand for custom transformer solutions surged. This allowed the growth stock to raise prices modestly and benefit from improved operational margins. Free cash flow strengthened as well. This enabled HPS.A to reduce short-term liabilities, build up cash reserves, and reinvest in scaling production capacity.
Hammond stands out as a long-term TSX giant because it combines essential infrastructure demand with scalable, high-margin manufacturing. That’s a rare blend of stability and growth potential. As global economies increasingly electrify, build out renewable energy, expand data centres, and upgrade power grids, demand for high-quality transformers and power systems should grow for decades. Provided HPS.A continues to manage costs, scale production and maintain strong cash flow, it has the potential to sustain and even grow dividend payouts over time.
Bottom line
For investors seeking long-term income, growth stocks are a great option. Yet it has to be the right type of growth stock. When it comes to creating stability and income, a mix of a quality ETF and essential infrastructure company is a prime option.
