Building long-term wealth in the stock market often comes down to owning high-quality businesses and letting time do the heavy lifting.
As a Canadian investor, the Toronto Stock Exchange (TSX) offers multiple world-class companies with durable competitive advantages, strong cash flows, and proven management teams. Here are five TSX-listed stocks I believe are well-positioned to deliver solid returns over the next decade.
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1. Royal Bank of Canada
Royal Bank of Canada (TSX: RY) is the cornerstone of many Canadian portfolios — and for good reason. As the country’s largest bank, RBC benefits from scale, diversification, and a dominant position in personal banking, wealth management, and capital markets.
Canadian banks operate in a highly regulated, oligopolistic environment that supports consistent profitability. RBC’s strong capital position and history of dividend growth make it an excellent long-term holding, especially for investors seeking income and stability.
That said, the stock hasn’t traded at this high a price-to-earnings ratio since 2010. It would be wise for investors to wait for a pullback or a safer entry point.
2. Canadian Natural Resources
Canadian Natural Resources (TSX: CNQ) is one of the most resilient energy producers in North America. Its diversified asset base, long-life reserves, and disciplined capital allocation allow it to generate substantial free cash flow across commodity cycles.
CNQ has increasingly focused on debt reduction and shareholder returns, including dividend growth and share buybacks. Even in a transitioning energy landscape, oil and gas will remain essential for years, and CNQ is well-positioned to benefit.
The top energy stock has traded in a sideways range since 2024. It offers a good dividend yield of around 5.3%, making it compelling for income-focused investors, especially since, at $44.62 per share at writing, the stock trades at a roughly 15% discount to the analyst consensus price target.
3. Brookfield Infrastructure Partners
Brookfield Infrastructure Partners (TSX: BIP.UN) owns a globally diversified portfolio of essential infrastructure assets, including utilities, pipelines, data centres, and transportation networks. These assets generate stable, inflation-linked cash flows that support steady distribution growth.
Managed by Brookfield, one of the world’s premier alternative asset managers, BIP.UN offers investors exposure to real assets with defensive characteristics and long-term growth potential.
BIP trades at a discount of about 14% and offers a cash distribution yield of approximately 5.0%, making it also a potential buy at current levels.
4. Brookfield Asset Management
Brookfield Asset Management (TSX: BAM) is a global powerhouse in alternative investing, with expertise in real estate, infrastructure, renewable energy, and private equity.
As institutional and retail investors increasingly allocate capital to alternative assets, BAM is positioned to benefit from long-term growth. Its asset-light model generates high margins and strong cash flows, making it a compelling compounder for patient investors, especially since it pays a growing dividend with a starting yield of about 3.2%.
5. Shopify
Shopify (TSX: SHOP) is another growth component of this list. As a leading global e-commerce platform, Shopify empowers millions of merchants to build, manage, and scale online businesses.
While the stock can be volatile, the company’s long runway for growth, expanding ecosystem, and focus on innovation make it a strong candidate for long-term capital appreciation. Over a decade, Shopify has the potential to be a transformational winner.
Investor takeaway
These five TSX stocks span financials, energy, infrastructure, asset management, and technology — providing diversification across sectors and economic cycles. While no investment is risk-free, owning high-quality businesses and holding them through market ups and downs remains one of the most effective strategies for long-term success.
