Many successful investors adopt a buy-and-hold strategy to counter the stock market’s inherent volatility. For this strategy to be effective and deliver healthy, compounded returns, the holding period should be long — at least 10 years.
The primary requirement is to select companies with wide moats, durable businesses, and fundamentally built to last. On the TSX, there are five stocks you can confidently hold for the next decade to achieve success.
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Massive “MOAT”
Royal Bank of Canada (TSX:RY), Canada’s largest company, is a core holding for any stock portfolio. This $326 billion bank has a massive “moat” and enjoys a dominant scale in a sector revered globally for its stability. RBC has survived two World Wars and every major financial crisis, including global catastrophes, for over 150 years.
At $232.71 per share, the dividend yield is a 2.82%. The dividend track record is 155 years and counting. Today, Canada’s banking sector, led by RBC, is the cornerstone of the country’s economy.
Safe-haven asset
The materials sector, which includes mining stocks, continues to dominate the TSX, up 21.53% thus far in 2026. Lundin Gold (TSX:LUG) stands out if you want a safe-haven asset against economic instability. It owns Fruta del Norte in southeast Ecuador, one of the world’s highest-grade operating gold mines.
The prolific gold mine is why this $28.8 billion mining company is a cash cow and generous dividend payer. In the first three quarters of 2025, net income and free cash flow (FCF) rose 88% and 338% year over year to $558 million and $598 million, respectively.
LUG’s 10-year return is +3,404%. Also, the TSX30 winner in 2025 (ranked second) trades at $120.92 per share and pays a 3.7% dividend.
Energy powerhouse
Canadian Natural Resources (TSX:CNQ) can be an anchor stock alongside a big bank. The $101.8 billion senior oil and natural gas company is an energy powerhouse in Canada. Its portfolio, with a long-life, low-decline asset base, is one of the most diversified in the industry today.
In addition to financial strength, Victor Daniel, the company’s chief financial officer, said, “We are resilient in lower commodity price environments while having significant torque to higher commodity prices.” If you invest today, the share price is $49.97. CNQ has raised dividends for 25 consecutive years and currently pays a hefty 4.81% dividend.
Defensive foundation
TELUS (TSX:T) regained its footing last year following a slump in 2024 due to high interest rates and price wars. Still, Canada’s second-largest telco ($29.2 billion market cap) provides essential communications services and a defensive foundation for income-focused investors, regardless of the economic environment.
The strategic expansion into TELUS Health, TELUS Agriculture, and TELUS Digital is a positive development, although connectivity remains its core business. Its share price of $19.01 is relatively low and a good entry point. The dividend offer is 8.9%.
Strong fundamentals
Canadian Apartment Properties REIT (TSX:CAR.UN), a $6 billion real estate investment trust, owns and operates residential apartment suites and townhomes. This top-tier REIT has maintained strong fundamentals for years, benefiting from chronic housing shortage and high rental demand in Canada.
At $38.74 per share, the dividend offer is 4%. Moreover, the monthly payout frequency is an incentive for dividend reinvestment and faster capital compounding.
Financial serenity
A buy-and-hold strategy is all about forming a diversified portfolio of high-quality stocks. The five companies can withstand market cycles, capable of providing you with long-term financial stability and peace of mind.
