Finding stocks that you can buy and hold forever is all about finding the highest-quality businesses in the country that you can own with confidence for years. That’s why blue-chip stocks are often some of the best long-term investments that Canadian investors can buy.
Blue-chip stocks are large, well-established companies with proven business models, strong balance sheets, and the ability to generate steady cash flow through different economic environments.
Furthermore, these stocks also tend to be leaders in their industries, with competitive advantages that make them difficult to disrupt. That’s why they’re often the best stocks to buy to form the foundation of long-term portfolios.
So, with that in mind, if you’re looking for Canadian stocks you can realistically buy and hold forever, here are five of the best blue-chip stocks on the TSX to consider.
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Two of the most popular blue-chip stocks to buy on the TSX
When it comes to blue-chip stocks in Canada, it’s hard to find two stocks that are more popular or more reliable than Enbridge (TSX:ENB) and Fortis (TSX:FTS).
Enbridge is one of the most widely owned dividend stocks in Canada for a reason. The company operates critical energy infrastructure across North America, making it one of the most reliable and defensive stocks on the TSX.
In addition to its reliability, though, another key reason Enbridge is one of the best blue-chip stocks to buy and hold forever is the predictability of its business.
Most of its cash flow is backed by long-term contracts, which allows it to generate reliable income regardless of commodity prices.
That’s why Enbridge can continue to increase the dividend every year, as it has done for three straight decades now, and why it can continue to offer an attractive dividend yield that currently sits at more than 5.8%.
Meanwhile, Fortis is even more reliable and defensive. As a regulated utility that owns electricity and gas utilities across Canada, the U.S., and the Caribbean, Fortis generates extremely stable and, more importantly, predictable cash flow.
That means not only is the dividend, which currently offers a yield of 3.5%, incredibly sustainable, but Fortis can continue to increase the payouts every year, which is why its dividend growth streak has lasted for more than half a century.
Three high-quality companies to buy and hold for years
In addition to Enbridge and Fortis, Brookfield Corporation (TSX:BN), Nutrien (TSX:NTR), and BCE (TSX:BCE) are three more of the best blue-chip stocks to buy if you’ve got cash that you’re looking to put to work today.
Brookfield is one of the most unique blue-chip stocks in Canada because of the exposure it offers.
For example, it not only manages capital, it also invests in high-quality assets around the world, including infrastructure, renewable power, real estate, and private credit.
Furthermore, it has proven time and again that its disciplined capital allocation strategy and ability to compound capital consistently over the long haul are what make it one of the best stocks to own, especially if you plan to hold it forever.
Meanwhile, Nutrien is one of the best blue-chip stocks to buy because it’s one of the largest producers of crop nutrients in the world with a dominant position in the industry and a vertically integrated business model.
So, it’s not just an essential and defensive business; it’s also a company that can benefit from long-term demand driven by population growth and the need to improve agricultural efficiency.
Therefore, considering its scale, asset base, and importance to the global food supply, there’s no question it’s one of the best blue-chip stocks that Canadian investors can buy.
Finally, BCE remains one of the most well-known blue-chip stocks in Canada. As a dominant telecom company, it owns critical infrastructure that Canadians rely on every day.
And while the sector has faced challenges in recent years, BCE’s recurring revenue, scale, and focus on generating cash flow continue to make it a core long-term holding, particularly for investors who value income and stability.
Plus, with the stock trading cheaply and with the dividend at a much more sustainable level, the stock is now offering a yield of roughly 5.1%.
So, if you’re looking for a reliable blue-chip stock that offers an attractive and sustainable yield, BCE is one of the best to buy today.
