We’re all taught that buying and holding high-quality stocks for the long haul is one of the most effective ways to build wealth over time. When you buy the best Canadian stocks, you benefit not only from their growth but also from the power of compounding as earnings and cash flow continue to increase year after year.
Of course, even if you’re investing with a long-term mindset, that doesn’t mean you can simply buy a stock and never think about it again. Businesses evolve, industries change, and economic conditions are constantly shifting.
That’s why it’s still important to regularly re-evaluate your holdings and make sure the companies you own remain high quality and well-positioned for the future.
With that being said, when you focus on businesses that are reliable, defensive and have strong competitive advantages, you can significantly improve your odds of success.
So, if you’re looking for high-quality Canadian stocks that you can buy today and confidently hold for at least the next five years, here are five of the best to consider.
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Three of the best growth stocks on the TSX
If you’re a younger investor who’s primarily looking to boost the growth potential of your portfolio, three of the best growth stocks to buy now are Dollarama (TSX: DOL), Shopify (TSX: SHOP) and Cameco (TSX: CCO).
While all three are high-quality, high-potential growth stocks, Dollarama is easily the most reliable of the three. In fact, it’s one of the most reliable long-term investments on the TSX, period, thanks to its defensive business model and consistent growth profile.
The discount retailer benefits from strong pricing power, an efficient supply chain, but most importantly, a value-focused offering that resonates with consumers in virtually any economic environment.
Plus, in addition to its resilient core business, Dollarama continues to grow by opening dozens of new stores each year, both domestically and internationally. That’s why it’s one of the best Canadian stocks to buy and hold for at least the next five years.
Meanwhile, Shopify is another top pick as one of Canada’s most well-known growth stocks and a leader in global e-commerce infrastructure.
While Shopify is a stock that can often be volatile in the short term, its long-term opportunity remains significant as the popularity of e-commerce continues to grow worldwide.
Therefore, as it continues to invest in innovation and grow its user base, Shopify has the potential to continue being one of the best growth stocks Canadian investors can buy for the long haul.
Cameco is an intriguing pick because it’s one of the world’s largest uranium producers and is well-positioned to benefit from the growing demand for nuclear energy, by far the most efficient source of energy on the planet.
That’s why, as countries continue to look for reliable, low-carbon power sources, nuclear energy is playing an increasingly important role in global energy strategies.
Therefore, Cameco’s high-quality assets, disciplined production strategy and dominant position in its industry make it one of the highest-potential Canadian stocks to buy over the next five years.
Two top Canadian dividend stocks to buy and hold for the next five years
If you’re looking for less volatile investments that help to boost your portfolio’s income over the next five years, two of the best Canadian stocks to buy now are Brookfield Renewable Partners (TSX: BEP.UN) and Choice Properties REIT (TSX: CHP.UN).
Brookfield Renewables is one of the best dividend stocks that Canadian investors can buy because it operates one of the largest portfolios of renewable energy assets. Furthermore, the company’s operations are tied to long-term contracts that generate predictable cash flow and provide strong downside protection.
Therefore, given its long-term growth potential as green energy becomes more popular and considering its current yield of 5.4%, it’s one of the best Canadian stocks to buy now.
Meanwhile, Choice Properties is one of the most defensive REITs in Canada, thanks to its focus on necessity-based properties.
Furthermore, the REIT also benefits from development opportunities, particularly through mixed-use projects and urban intensification.
That’s why Choice can offer both a 4.9% yield today and consistent increases to its dividend annually, making it one of the best and most reliable Canadian dividend stocks to buy now.
