Long-term investing is a reliable way to build wealth in the stock market, where sharp rallies and sudden pullbacks are common. While many investors tend to react to short-term volatility, maintaining a long-term view allows you to ride out market swings and focus on the bigger picture – achieving healthy, sustainable returns over time.
Historically, a longer holding period often beats timing the market. Also, by choosing high-quality investments, you avoid making hasty decisions during downturns.
A wealth-building pair with a long-term edge is Toronto Dominion Bank (TSX: TD) and BCE (TSX: BCE). Beyond their sustainable dividend payments, there’s significant potential for capital appreciation.
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Restored investors’ confidence
Canada’s financial system is robust, regulated, and amply covered by comprehensive consumer protection laws. The Toronto Dominion Bank stands out in 2026 for its high-performance potential, notwithstanding asset caps and constraints in its U.S. operations.
The $214 billion bank’s remarkable recovery from anti-money laundering (AML) compliance failures, along with a historic US$3 billion fine, has reinforced its strong market position. TD currently trades at $130.29 per share (+87.2%) from a low of $69.60 on December 6, 2024. Canada’s second-largest bank is back on investors’ radars.
In Q1 fiscal 2026 (three months ending January 31, 2026), net income rose 45% to $4 billion compared to Q1 fiscal 2025. Also, during the quarter, Canadian Personal and Commercial Banking delivered record revenue, earnings, deposits, and loan volumes. Notably, net income of the U.S. banking segment climbed 627% year-over-year to $1 billion.
The top priorities include fixing deficiencies and meeting regulatory demands. Management’s intense focus on remediation and AML compliance helped restore profitability and investors’ confidence. The remediation timeline is 2027, though it could extend to 2028.
The adjusted return on equity target in fiscal 2026 is 13%, rising to around 16% by fiscal 2029. TD’s strong capital position enabled it to absorb the hefty fine imposed by U.S. regulators without suspending or slashing dividends. It also repurchased 19 million shares and announced a new $7 billion share buyback program.
TD has kept its 168-year dividend track record intact. If you invest today, TD’s dividend offer is 3.4%.
Safer, stable investment
BCE did the unthinkable following a major restructuring announcement. In May 2025, Canada’s telco giant cut its annual payout by 56%. The impact was shocking, but the decision made sense. Its payout ratio is down to 34% after remaining above 100% for the last four years. The 5% dividend is safer and more stable in 2026.
As of this writing, BCE trades at $35.42 per share, up 9.6% year-to-date versus the broad market’s plus-3.7%. Also, the communication services sector has gained 6.1% thus far this year. The $32.7 billion communications company achieved all its financial guidance targets for 2025.
In 2025, BCE’s free cash flow (FCF) increased 10% year-over-year to $3.2 billion, with net earnings reaching $6.5 billion. Mirko Bibic, President and CEO of BCE and Bell Canada, said, “We are well-positioned to drive sustainable free cash flow growth and deliver long-term returns for shareholders.” He added that BCE is building a digital media and content powerhouse.
Buy and hold
TD and BCE took parallel journeys to regain investors’ trust and confidence. After their reset periods and with renewed growth stories, both are the top stocks to buy and hold for the long term.
