When investors think about building wealth over a long horizon, such as 20 years or more, stocks often stand out as one of the most compelling choices. Historically, equities have outperformed most other asset classes over extended periods, making them a powerful investment for long-term capital appreciation. By staying invested through market cycles, investors can benefit from compounding returns, thereby significantly enhancing wealth creation over time.
Against this backdrop, these are the top Canadian stocks to hold for the next 20 years. These companies have solid fundamentals and the potential to outperform the broader equity market.
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Top Canadian stock #1: Enerflex
Investors looking for a compelling stock to hold for the next 20 years could consider Enerflex (TSX:EFX). The company provides energy infrastructure and transition solutions, with growth increasingly driven by its energy Infrastructure segment. This business benefits from long-term contracts that generate recurring revenue and dependable cash flow.
Enerflex’s long-term growth will likely be supported by its Engineered Systems division, which delivers customized modular solutions and has a solid order backlog. Meanwhile, its Aftermarket Services business sees steady demand for maintenance and parts.
Looking ahead, rising Permian Basin natural gas output, fleet expansion plans, and a focus on profitability will likely drive its financials and share price. Further, debt reduction and its focus on strengthening its free cash flow augur well for long-term growth.
Top Canadian stock #2: Cameco
Cameco (TSX:CCO) is a top TSX stock for long-term wealth creation. It is a leading uranium producer, holding interests in high-grade, low-cost reserves that support strong profitability through commodity cycles. Moreover, its strategic stakes in Westinghouse Electric and Global Laser Enrichment further extend its reach across the nuclear fuel value chain.
Looking ahead, accelerating decarbonization efforts, rising electricity demand from AI-driven data centres, and long-term supply contracts should support stable cash flows and growth. Further, its integrated business model and ongoing exploration activities to support future production position it well to benefit from long-term energy transition opportunities.
Top Canadian stock #3: MDA Space
MDA Space (TSX:MDA) is an attractive stock to buy and hold for the next 20 years. The recent pullback in MDA Space stock provides a solid buying opportunity for long-term investors. The space technology company is set to benefit from the growing demand for its satellite systems, robotics, and geointelligence, supported by rising global data consumption and increased defence spending.
Notably, space is becoming a strategic priority for national security. As governments invest more heavily in space-based defence and surveillance, MDA is well-positioned to benefit. The company is also likely to benefit from solid momentum in its advanced satellite communications technology, which supports broadband and 5G connectivity. In addition, rising interest in earth observation and space robotics adds further tailwinds. Backed by a robust project backlog and a solid balance sheet, MDA Space appears well-equipped to sustain growth and generate attractive returns.
Top Canadian stock #4: TerraVest
TerraVest Industries (TSX:TVK) is another top TSX stock for creating long-term wealth. It is a diversified industrial company serving multiple end markets, with a focus on home heating products, energy transport and storage equipment, and fibreglass tanks. Its broad portfolio continues to perform well, supported by recent acquisitions that are already contributing to earnings, with further benefits expected next year.
While recent tariff announcements have introduced some short-term demand softness, TerraVest’s focus on domestic manufacturing limits potential exposure. Further, ongoing investments in manufacturing efficiency and product expansion strengthen its competitive position. Looking ahead, its strong balance sheet positions it well to pursue strategic acquisitions, supporting long-term growth and shareholder value.
