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

With steady cash flow, ongoing expansion, and reliable dividends, these two top Canadian stocks remain solid options for long-term investors.

Key Points
  • Pembina Pipeline (TSX:PPL) offers a 4.6% dividend yield, supported by strong pipeline volumes and strategic expansion projects.
  • Keyera (TSX:KEY) provides a 4% yield, showing consistent cash generation through robust margins and infrastructure growth.
  • Both Pembina and Keyera exemplify strong, dividend-focused investments in the energy sector.

In long-term investing, not many strategies are as rewarding as focusing on companies that consistently return value to shareholders. This often comes through dividends – regular payments that represent a share of company profits.

For Canadian investors seeking dependable income, especially in the energy sector, some companies have built a strong reputation over years of stable performance and dividend growth. These established businesses can continue to generate wealth over time. And their fee-based models could help them stay resilient even when commodity prices fluctuate amid the escalating geopolitical tensions, making them great stocks to hold even amid economic slowdowns.

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Pembina Pipeline stock

After gaining 10% in the last year, Pembina Pipeline (TSX: PPL) currently trades at $63.05 with a market cap of $36.8 billion. But more importantly, PPL stock offers a dividend yield of about 4.6%, making it even more attractive for income-focused investors.

Its recent performance has been supported by strong volumes across its pipeline and facilities network, reaching record levels in 2025. Pembina’s expansion projects like Birch-to-Taylor and Taylor-to-Gordondale highlight continued demand. At the same time, its long-term agreements tied to projects like Cedar LNG also provide stable revenue visibility.

Last year, Pembina reported earnings of $1.7 billion and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $4.3 billion. While they were slightly lower than the previous year, strong volumes and acquisitions helped support overall financial performance.

The company also maintains a solid balance sheet, with a net debt-to-adjusted EBITDA ratio of 1.8 times, giving it flexibility for future investments.

Looking ahead, Pembina continues to expand its infrastructure and explore opportunities in evolving energy markets. Its projects like the Greenlight Electricity Centre also show its push toward diversification. Overall, with disciplined capital allocation and a history of reliable dividends, it remains a strong long-term holding.

Keyera stock

Another Canadian energy infrastructure giant, Keyera (TSX: KEY) currently trades at $54.41 with a market cap of $15.3 billion. KEY stock has risen over 20% in the past year and offers a dividend yield of around 4%.

In 2025, Keyera reported adjusted EBITDA of $1.1 billion for the full year, with distributable cash flow reaching $735 million. This highlights its ability to consistently generate cash.

Despite the uncertain macroeconomic environment, its growth has been driven by strong margins in its gathering, processing, and liquids infrastructure segments. Record volumes through its condensate system and Key Access Pipeline System, along with higher throughput at key gas plants, have also supported its results.

Recently, Keyera continued to strengthen its position by acquiring a 50.1% interest in two Simonette gas plants, expanding its footprint in natural gas processing.

Just like Pembina, Keyera also maintains a healthy balance sheet, with a net debt-to-adjusted EBITDA ratio of 1.8 times. The company is advancing several growth projects, including KFS Frac II and III expansions and KAPS Zone 4, which could accelerate its financial growth trends further in the years to come.

Fool contributor Jitendra Parashar has positions in Pembina Pipeline. The Motley Fool recommends Keyera and Pembina Pipeline. The Motley Fool has a disclosure policy.

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