Finding the best Canadian stocks to buy and hold for decades isn’t about chasing what’s hot or trying to time the market. It’s about owning businesses that are so deeply embedded in the economy that they’re almost impossible to replace.
These are the companies that sit at the core of the economy, whether they’re moving goods, providing essential services, or operating well-known brands that Canadians interact with every single day. Over long periods of time, businesses with that type of dominance and consistency are some of the best to own.
That’s why long-term investing is the best way to put your money to work, as long as you focus on high-quality companies with reliable business models, strong competitive advantages, and the long-term potential to grow and compound your capital for years to come.
These stocks aren’t always the most exciting in the short term. But over decades, they tend to quietly build value, generate massive amounts of cash flow, and reward patient, disciplined investors.
That’s why the goal isn’t to buy stocks that will be worth more a few years down the line. The real goal is finding businesses that you can realistically feel confident holding through multiple economic cycles.
So, with that in mind, if you’re looking for high-quality Canadian stocks to buy and hold for years, here are three of the best on the TSX.
A stock that’s made for long-term investors
If you’re looking for unstoppable Canadian stocks to buy and hold for years, there’s no question that Brookfield Corporation (TSX:BN) should be one of the first stocks you consider.
Brookfield is one of the best long-term investments you can own because its business is built around owning and operating assets that the global economy depends on, such as infrastructure, power, real estate, and private credit.
What really sets Brookfield apart, though, is its scale and capital allocation discipline. It has access to massive pools of capital, a global footprint, and a repeatable strategy that allows it to buy high-quality assets, improve their economics and efficiency, and then reinvest the growing capital they generate into new opportunities over and over again.
That structure gives Brookfield the flexibility to adapt its investment strategy as the economy changes while still staying focused on long-term value creation.
That’s why Brookfield has been able to generate 19% annualized returns for investors for more than three straight decades and why it is one of the best long-term stocks Canadians can buy.
A defensive investment at the core of the economy
In addition to Brookfield, another popular long-term investment for Canadians, and rightly so, is Canadian National Railway (TSX:CNR).
CN is one of the most reliable businesses in Canada because it owns infrastructure that’s virtually impossible to replicate. Rail networks take decades to build, require massive capital, and face heavy regulation, which creates an enormous competitive moat. Furthermore, they’re also the most efficient way to move goods.
That means CN operates at the heart of the North American economy and consistently benefits from long-term demand for moving goods efficiently across the continent.
What makes CN one of the best Canadian stocks to buy and hold for decades is its consistency. In fact, over the last decade, its normalized earnings per share (EPS) have grown at a compound annual growth rate (CAGR) of 6.5%.
So, while CNR won’t ever grow explosively, it’s the perfect core Canadian stock for consistency and reliability.
One of the best retail stocks that Canadians can buy
Most of the best and most unstoppable stocks in Canada operate in highly defensive sectors, so the fact that Canadian Tire (TSX:CTC.A) makes the list shows what an impressive business it has built.
Canadian Tire is one of the most unique long-term investments in Canada because it combines strong brands, essential retail categories, and a deeply entrenched presence in Canadian households.
Furthermore, its retail operations, loyalty program, digital platform, and financial services arm all work together to drive customer loyalty, repeat purchases, and long-term growth.
So, it’s no surprise that even through the pandemic and higher inflation environment in recent years, Canadian Tire has still managed to grow its normalized EPS at a CAGR of 5.2% over the last decade.
In addition, it offers a current yield of 4.1%, and increases its payout annually, reminding investors why it’s one of the best stocks to buy and hold for the long haul.
