If you are new to investing, a solid 40-year portfolio is not built on clever predictions. It is built on a mix you can hold through a recession, a rate shock, and the inevitable year when your favourite stock does nothing. Three Canadian stocks plus one exchange-traded fund (ETF) can work if each holding has a clear job. You want income, steady growth, a different economic driver, and broad diversification so one theme does not dominate your Tax-Free Savings Account (TFSA).
SRU
SmartCentres REIT (TSX: SRU.UN) fits the income and real assets slot. In its third quarter of 2025, SmartCentres reported occupancy of 98.6% and pointed to positive leasing spreads on renewals when excluding anchor tenants. It also discussed same property net operating income (NOI) growth excluding anchors. This hints at rent growth potential in the smaller shop mix.
What beginners need to watch with SRU.UN is rates and accounting noise. SmartCentres noted that fair value changes tied to its equity investment can swing reported funds from operations (FFO) per unit, even when cash property performance is steady. For now, it’s a strong opportunity for investors to get in while this remains a cheaper, high yielding dividend stock.
DOL
Dollarama (TSX: DOL) is the steady growth anchor here. In its third quarter fiscal 2026 results, it reported sales of $1.9 billion, net earnings of $321.7 million, and diluted earnings per share (EPS) of $1.17. It also raised the quarterly dividend and guided for continued sales and earnings growth into the next quarter.
The main risk with DOL is valuation, not demand. Consistent businesses often trade at premium multiples, so the Canadian stock can go sideways if growth normalizes or costs squeeze margins. As a long-term holding, it can balance the rate sensitivity of a real estate investment trust (REIT) as it’s driven more by consumer behaviour than financing conditions.
SJ
Stella-Jones (TSX: SJ) adds industrial diversification through products used in rail and utility networks. In the third quarter of 2025, the Canadian stock reported sales of $1.0039 billion versus $1.0035 billion a year earlier, while net earnings fell to $101.7 million from $128.6 million, and diluted EPS declined to $1.73 from $2.13. That is a useful reminder that volumes and pricing can improve while costs, mix, or timing still pressure earnings.
SJ can still be a sensible buy and hold as its drivers are different from banks, telecom, and housing. The trade off is that results can be lumpy, so you need patience. If you own it, focus on cash generation, margin stability, and disciplined capital allocation over several years, not one quarter. If those basics hold, weaker near-term earnings are not automatically a reason to sell.
XQLT
Finally, iShares MSCI USA Quality Factor ETF (TSX: XQLT) can be the simple diversification sleeve. It adds U.S. exposure with a quality tilt, which helps reduce Canada concentration risk and gives you a different set of sector weights. Put together, SRU.UN can provide income and potential upside if cuts arrive, DOL can provide steady compounding, SJ can provide a different economic engine, and XQLT broadens the base.
It is still an all equity mix, so it will be volatile, but it is beginner friendly because each holding has a role and you do not need to check prices daily. A beginner mistake is chasing yield and ending up concentrated in one sector. This mix spreads that risk.
Bottom line
If you’re starting out, this balanced approach can certainly bring in immense income over time. Yet even today, here’s what $7,000 could bring in from each stock.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL ANNUAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| SJ | $86.89 | 80 | $1.24 | $99.20 | Quarterly | $6,951.20 |
| SRU.UN | $25.78 | 271 | $1.85 | $501.35 | Quarterly | $6,986.38 |
| XQLT | $44.74 | 156 | $0.30 | $46.80 | Quarterly | $6,979.44 |
| DOL | $201.39 | 34 | $0.42 | $14.28 | Quarterly | $6,847.26 |
Just remember, while it can be nice to set it and forget it, it’s important to check in on any and every investment. Rebalance once or twice a year, reinvest any distributions, and keep adding when markets are dull, not only when they are exciting. Holding through drawdowns is the edge, and this structure makes it easier for you to exercise patience.
