Prediction: 10 Years From Now, You’ll be Glad You Bought These Winners

These three Canadian stocks offer different ways to compound over 10 years through essential networks, recurring software cash flow, and growing power demand.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published January 29, 3:30 pm EST

| More on: BEP.UNCPCSU

Key Points

Canadian Pacific Kansas City can benefit from North American trade flows, but freight cycles and labour risks add volatility.
Constellation Software compounds by buying niche software firms, though leadership change and acquisition pricing are key risks.
Brookfield Renewable offers a 5%+ yield and long-term electrification upside, but rates, debt, and weather can pressure results.

Ten years sounds like forever, until it suddenly doesn’t. A decade-long lens helps you ignore noise and focus on what drives wealth: steady demand, pricing power, and leaders who reinvest cash wisely. It also forces patience, which most investors lack. You can live through a recession, a rate cycle, and some nasty surprises in 10 years, but only if you own businesses that keep improving while you wait. So let’s look at some Canadian stocks doing just that.

a man celebrates his good fortune with a disco ball and confetti — Source: Getty Images

CP

Canadian Pacific Kansas City (TSX:CP) looks relevant now as trade routes across North America keep shifting, and rail still moves heavy freight cheaply. CP runs a network that connects Canada, the U.S., and Mexico, which gives it a rare one-company corridor for cross-border shipments. The Canadian stock hasn’t felt stable lately, with shares down about 15% in the last year. A pullback like that can shake out traders, even when the network keeps gaining density and efficiency.

Recent results show progress on execution. In Q3 2025, CP delivered total revenues of $3.7 billion and grew diluted earnings per share (EPS) to $1.01, while core adjusted diluted EPS reached $1.10. It also improved efficiency, with a core adjusted operating ratio of 60.7%. Right now, it trades at about 21.4 times earnings, and 19 times forward earnings. If Mexico-to-U.S. manufacturing lanes keep expanding, CP can benefit, but freight recessions, labour disputes, and border friction, or weaker industrial demand can cut pricing power.

CSU

Constellation Software (TSX:CSU) matters now as it often thrives when markets feel messy. CSU buys niche, mission-critical software businesses, then lets each one run with a long-term, decentralized playbook. The Canadian stock has taken a bruising recently since its long-time CEO and founder Mark Leonard stepped down. Today, the Canadian stock is down about 22% year to date, and 44% in the last year.That kind of drawdown feels awful in the moment, yet it can create opportunity if fundamentals keep compounding and management keeps its discipline.

The fundamentals still look lively. In Q3 2025, CSU grew revenue 16% year over year to $3 billion and increased net income attributable to common shareholders to $210 million, or $9.89 per diluted share. It also reported free cash flow available to shareholders of $529 million, up 46% from a year earlier. Today it trades at about 58 times earnings, and 17 times forward earnings. That gap hints at earnings growth ahead, but CSU can stumble if it overpays for acquisitions or if deal competition heats up. Yet today’s investors can grab a solid deal if the Canadian stock recovers.

BEP

Brookfield Renewable Partners (TSX:BEP.UN) looks timely as power demand keeps climbing and electrification keeps spreading into transport and data centres. BEP.UN owns and operates renewable assets, with hydro as a key anchor, and it develops new projects as well. The unit price has swung with interest rates, but at writing, shares are already up 5% year-to-date, and 27% in the last year. When rates move fast, this Canadian stock can feel like a yo-yo, so you need a long horizon and a clear thesis.

The cash picture remains the real story. In Q3 2025, Brookfield Renewable reported funds from operations (FFO) of $302 million, or $0.46 per unit, up 10% year over year. Accounting earnings can swing, so investors often lean on FFO and distributions instead. Fund data shows an annual dividend around $2.04 per unit, about a 5.2% yield, which helps while you wait. Future upside can come from project completions and better financing terms, while drought, permitting delays, and debt costs can bite.

Bottom line

If you want a 2036-friendly mix, these three Canadian stocks cover a lot of ground without forcing you to chase the next shiny thing. CP can compound through route density and relentless efficiency. CSU can keep buying small software cash engines and turning them into bigger ones. BEP.UN can ride the long runway for clean power and grid upgrades while paying you to wait. None of this guarantees wins, and you should expect uncomfortable stretches, but patient owners often earn the payoff.