When it comes to building long-term wealth in the stock market, having success is not as difficult as it might seem. In order to grow your hard-earned money in a meaningful way, it usually just comes down to owning the right Canadian stocks and having the discipline to hold them for years.
That means not panic selling when the market pulls back, which is easier said than done for a lot of newer investors. It also means not selling stocks just because they’re up and you want to lock in a gain.
Investing itself doesn’t have to be complicated. What is difficult is managing your emotions, which is why it’s important to understand this stuff upfront. That’s also why doing proper research matters so much.
When you research a stock, it’s not just to decide whether it’s worth buying or not. It’s also to give yourself reasons to keep holding it.
For example, if the market sells off, you can remind yourself that the underlying business is still strong or defensive, the cash flow is solid, and the dividend is sustainable. That perspective helps you remember that volatility is temporary and, in many cases, creates better buying opportunities.
The same thing applies when stocks are doing well. It’s common for investors to want to sell when prices are up, fearing they’ll lose those gains if they don’t act. But if you can remind yourself why you bought the company in the first place, and why it still has long-term potential, it becomes much easier to stay invested.
That’s why the best stocks to buy are always the highest-quality businesses. They give you the confidence to hold through different market environments.
The longer you own high-quality stocks, the more powerful compounding becomes and the faster your portfolio can grow. It’s why Warren Buffett famously said, “Our favourite holding period is forever.”
The best buy-and-hold stocks also tend to share another key advantage: they pay you to stay invested.
So, with that in mind, if you’re looking for one smart Canadian stock you can buy, hold, and feel confident owning for years, here’s why Brookfield Infrastructure Partners (TSX:BIP.UN) fits the bill perfectly.
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Why is Brookfield Infrastructure one of the best Canadian stocks to own for the long haul?
What makes Brookfield Infrastructure such a strong buy-and-hold stock is that its business is built around assets the world simply can’t function without. However, unlike many other defensive stocks with essential operations, Brookfield also has above-average growth potential for decades to come.
The stock owns critical infrastructure like utilities, pipelines, data infrastructure, ports, rail, and energy transmission assets spread across multiple continents.
These are businesses that are essential since this infrastructure is used every single day, regardless of what’s happening in the economy. That’s what allows Brookfield to generate predictable, recurring cash flow and what makes it such a reliable stock to buy and hold for the long haul.
Furthermore, in addition to its portfolio of essential infrastructure assets, its operations are also diversified all over the world. That’s crucial because it helps reduce risk and smooth out performance over time, especially if one region slows down, others can pick up the slack.
Maybe the most important reason why Brookfield is one of the best Canadian stocks to buy and hold with confidence is its management team. It’s no secret that Brookfield has one of the best management teams in the world when it comes to operating and acquiring real assets.
For years, the company has proven it’s a disciplined buyer, it focuses on long-term returns, and it consistently looks for opportunities to improve and expand the assets it already owns.
Plus, in addition to its operations, Brookfield’s also one of the best dividend-growth stocks on the TSX.
Not only does it currently offer a yield north of 5%, but management also targets annual distribution growth of 5% to 9%.
Furthermore, on top of that attractive yield and the growing payout each year, infrastructure stocks tend to benefit as interest rates move lower, and with rate cuts expected to continue into 2026, Brookfield stock certainly trades at a compelling valuation today.
So, if you’re looking for a high-quality Canadian stock to buy now that you can hold for years, Brookfield Infrastructure is unquestionably one of the top picks.
