1 Smart Buy-and-Hold Canadian Stock

This ultra-reliable Canadian stock is the perfect business to buy now and hold in your portfolio for decades to come.

Key Points
  • Brookfield Infrastructure Partners (TSX:BIP.UN) owns essential, diversified global infrastructure (utilities, pipelines, data centres, ports, rail, transmission) that generates predictable, recurring cash flow and is run by a disciplined management team — ideal for buy‑and‑hold investors.
  • It pairs attractive income and growth (yield north of 5% with targeted 5–9% annual distribution growth) and is well positioned to benefit from lower interest rates, making it a compelling long‑term holding.
  • 5 stocks our experts like better than Brookfield Infrastructure

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.

dividends grow over time

Source: Getty Images

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.

Fool contributor Daniel Da Costa has positions in Brookfield Infrastructure Partners. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.

More on Dividend Stocks

jar with coins and plant
Dividend Stocks

Dividend Stocks or Annuities for Retirement Income?

Here's how Canadian dividend stocks and annuities compare as retirement income sources

Read more »

Investor wonders if it's safe to buy stocks now
Dividend Stocks

Is TELUS a Good Stock to Buy After Finally Cutting its Dividend?

TELUS cut its dividend 55%, but still offers you a tasty dividend yield of 6.3%. Is the Canadian blue-chip stock…

Read more »

Real estate investment concept with person pointing on growth graph and coin stacking to get profit from property
Dividend Stocks

Mortgage Rates Are Rising: The Bank of Canada Hasn’t Moved

Fixed mortgage rates can rise without a central-bank move, adding real monthly costs while also testing lenders' funding and credit…

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How I’d Structure My $14,000 TFSA for Constant Income

If you have $14,000 saved in your TFSA, here is one easy investment strategy to earn $50 of tax-free monthly…

Read more »

woman looks at iPhone
Dividend Stocks

I’m Not Selling Telus After the 55% Dividend Cut: Here’s Why

Contrary to what the market seems to be saying, Telus Corporation (TSX: T) still has a lot going for it.…

Read more »

monthly calendar with clock
Dividend Stocks

A No-Nonsense 3.7% Dividend Stock That Can Pay Retirees Monthly

This no-nonsense dividend stock has returned more than $3.4 billion to shareholders through dividends since 2013.

Read more »

dreaming of financial success
Dividend Stocks

3 Questions to Ask Before Buying a Dividend Stock

Buying a dividend stock? Here are three questions to help you look beyond the yield, with examples from Enbridge, Fortis…

Read more »

Woman in private jet airplane
Dividend Stocks

Make $100 a Month Tax-Free: How Much to Invest in Diversified Royalty and Where

The TFSA is the ultimate investment account to place your money and earn tax-free income.

Read more »