Long-term investing is centred on holding high-quality assets over an extended period, enabling investors to ride out short-term market volatility and fully harness the power of compounding. That said, success with this approach depends on careful stock selection. Investors should prioritize companies with strong underlying businesses, resilient cash flows, and compelling long-term growth prospects. With this perspective in mind, here are my five top picks that you can buy and hold for the next 10 years to reap superior returns.
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Fortis
Fortis (TSX:FTS) owns and operates nine regulated electricity and natural gas utilities, serving 3.5 million customers across the United States, Canada, and the Caribbean. With 100% of its assets regulated and 95% focused on low-risk transmission and distribution, its earnings remain largely insulated from economic cycles and market volatility, thereby supporting stable, predictable returns. Fortis has increased its dividend for 52 consecutive years and currently offers a forward yield of about 3.3%.
The company is also advancing a five-year capital investment plan worth $28.8 billion, which could grow its rate base at a 7% annualized pace to $57.8 billion by 2030. Supported by this expansion, management targets annual dividend growth of 4–6% through the decade, reinforcing its appeal as a reliable long-term investment.
Dollarama
Dollarama (TSX:DOL) is a leading discount retailer with 1,684 stores in Canada and 401 in Australia. Its direct sourcing model and efficient logistics enable it to offer a wide variety of products at attractive price points, supporting steady same-store sales even in uncertain economic conditions. The company plans to expand its Canadian store base to 2,200 and its Australian footprint to 700 by fiscal 2034, which should drive sustained revenue and earnings growth.
Dollarama also owns a 60.1% stake in Dollarcity, which operates 684 stores across five Latin American countries and aims to reach 1,050 stores by fiscal 2034. With the option to increase its stake to 70%, Dollarama benefits from multiple avenues for growth. Its defensive business model and disciplined expansion strategy position it well for long-term returns.
Waste Connections
Waste Connections (TSX:WCN) provides non-hazardous solid waste collection, transfer, and disposal services, primarily in secondary and exclusive markets. Its focus on these markets limits competition and supports stronger margins. The company has driven growth through a combination of organic expansion and strategic acquisitions, completing about 100 deals over the past five years that add roughly $2.2 billion in annualized revenue.
Waste Connections is also expanding its renewable natural gas (RNG) platform, with five facilities currently operating and several more expected to come online by year-end. In addition, it maintains a robust acquisition pipeline of private companies in the United States and Canada, representing nearly $5 billion in annualized revenue. Backed by these multiple growth drivers, the company appears well-positioned to sustain financial momentum and long-term share price appreciation.
Enbridge
Another stock I view as a compelling long-term investment is Enbridge (TSX:ENB). The company operates a highly contracted business model that generates stable cash flows and supports an attractive dividend. Approximately 98% of its adjusted EBITDA comes from long-term take-or-pay contracts and regulated assets, with about 80% of cash flows indexed to inflation. This structure helps insulate its financial performance from economic cycles and market volatility.
Backed by resilient cash flows, Enbridge has increased its dividend for the past 31 years and currently offers a forward yield of about 5.4%. In addition, the company has identified roughly $50 billion in growth opportunities and plans to invest $10 billion annually to advance these projects. Given its visible growth pipeline and defensive cash flow profile, Enbridge appears well-positioned to sustain dividend growth over the long term.
Bank of Nova Scotia
My final pick is Bank of Nova Scotia (TSX:BNS), which has paid dividends uninterruptedly since 1833, supported by its diversified revenue base. In its recent first-quarter results, adjusted EPS rose 16.5% year over year to $2.05, driven by solid contributions from all four business segments. The bank’s capital position also strengthened, with the common equity tier-one ratio improving to 13.3% and the tier-one capital ratio to 15.4%.
Scotiabank is progressing with its strategic restructuring, reallocating capital toward its core North American operations while reducing exposure to less profitable, higher-risk Latin American markets. Supported by improving fundamentals, a strong balance sheet, and a long record of dividend payments, Scotiabank remains well-positioned to deliver steady income and long-term value.
