3 Stocks to Buy and Hold Forever: A Long-Term Play for Your Portfolio

These TSX stocks have resilient business models and ability to generate steady earnings, which support their share price and dividends.

Key Points
  • A long-term buy-and-hold approach focused on high-quality Canadian businesses can help investors compound returns and ride out short-term volatility.
  • Enbridge, Dollarama, and Bird Construction stand out for their resilient business model and solid growth prospects.
  • These companies are well-positioned to navigate uncertainty and likely to generate above-average returns.

Stocks have outpaced most other assets over the long term, making them an attractive investment for wealth creation. Rather than attempting to time the market, a more effective approach is to identify high-quality Canadian stocks with solid fundamentals and hold them for the long term. This buy-and-hold strategy allows investors to benefit from compounding growth while minimizing the impact of short-term volatility.

While the macroeconomic uncertainty and persistent geopolitical tensions continue to weigh on overall market sentiment, a few Canadian companies stand out for their ability to navigate these uncertainties. Backed by resilient business models and the ability to generate steady earnings, these firms are well-positioned to deliver solid long-term returns.

With that background, here are three TSX stocks that are long-term plays for your portfolio. You can buy and hold these stocks for steady long-term gains.

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Stock #1: Enbridge

Enbridge (TSX: ENB) is one of the most reliable stocks to buy and hold for income, steady growth, and stability. This energy infrastructure giant is benefiting from rising energy demand and higher utilization of its extensive pipeline and energy infrastructure network. At the same time, it is rewarding its shareholders through higher payouts. Notably, it has consistently raised its dividend every year since 1995.

Enbridge’s regulated assets and long-term take-or-pay contracts generate steady earnings and shield the company from commodity price volatility. This stability supports consistent distributable cash flow growth and reliable dividends. Further, the majority of Enbridge’s earnings before interest, taxes, depreciation, and amortization (EBITDA) are inflation-protected, providing a hedge against rising costs.

Looking ahead, management projects a mid-single-digit increase in dividends over the coming years, thanks to its resilient business model and a sustainable payout ratio. Moreover, growth opportunities in the gas transmission business, driven by industrial and power demand, augur well for growth.

Stock #2: Dollarama

Dollarama (TSX: DOL) is another solid long-term stock to buy and hold right now amid broader market uncertainty. This retailer operates an extensive network of discount stores that sell a wide range of essentials at low, fixed prices. Its value pricing strategy enables it to drive traffic in all market conditions. Further, Dollarama’s strong mix of national brands and private-label products helps maintain growth and cushions margins.

Over the past three years, Dollarama’s stock has delivered capital gains of about 141%, driven by its steady same-store sales growth and strong profitability. Moreover, it has increased dividends 14 times since 2011.

The retailer’s long-term outlook looks favourable. Its expansion strategy, through new store openings and its growing presence in international markets, should support revenue growth. Further, partnerships with third-party delivery services will drive penetration and generate incremental sales. At the same time, its balanced merchandise mix, efficient sourcing strategies, and focus on cost reduction are likely to drive earnings growth. This will drive its future dividend payments and support the share price.

Stock #3: Bird Construction

Another compelling long-term stock is Bird Construction (TSX: BDT). As one of Canada’s leading construction and maintenance firms, it is well-positioned to benefit from an expanding presence in some of the country’s most resilient and growing end markets, including civil infrastructure, industrial work, and defence. Shares of Bird Construction have increased by an average annualized rate of more than 63%, delivering total gains of 334.7% in the last three years.

While macroeconomic headwinds have weighed on certain parts of the construction industry, Bird’s operating momentum remains intact. The company reported a combined and pending backlog of $11 billion in 2025, enhancing long-term revenue visibility.

Looking ahead, Bird appears well-equipped to navigate the current volatility while continuing to invest for growth. Its capital position allows management to pursue selective, value-accretive acquisitions that expand capabilities and deepen market reach. Further, Bird Construction’s substantial backlog, exposure to Canada’s infrastructure buildout, and improving revenue visibility augur well for growth.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Dollarama and Enbridge. The Motley Fool has a disclosure policy.

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