Long-term investing remains a highly effective strategy, as it helps investors ride out short-term market volatility while harnessing the power of compounding. At the same time, careful stock selection is crucial – focusing on high-quality companies with strong, well-established businesses. In this context, and given the uncertain outlook driven by ongoing tensions in the Middle East, the following three stocks stand out as attractive buying opportunities for long-term investors.
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Fortis
Fortis (TSX:FTS) operates a highly regulated utility business, with about 95% of its assets tied to the low-risk transmission and distribution of electricity and natural gas. The company serves roughly 3.5 million customers across the United States, Canada, and the Caribbean, benefiting from the essential nature of its services.
This stability, combined with a steadily expanding asset base, has supported consistent financial growth, driving both share price appreciation and reliable dividend increases. Over the past two decades, Fortis has delivered an average annual total shareholder return of approximately 10.5%. It has also raised its dividend for 52 consecutive years and currently offers an attractive yield of around 3.3%.
Looking ahead, Fortis is well-positioned to capitalize on rising energy demand driven by economic growth, increased investment in AI-ready data centres, and the ongoing electrification of transportation. The company plans to invest $28.8 billion through the end of the decade, targeting a 7% annual growth in its rate base to reach $57.9 billion. Alongside these expansion initiatives, continued cost optimization and efficiency improvements should support steady earnings growth. Backed by this outlook, Fortis expects to grow its dividend by 4–6% annually through 2030, reinforcing its appeal as a reliable long-term investment.
Enbridge
Enbridge (TSX:ENB) operates an extensive pipeline network that transports oil and natural gas across North America under a tolling framework and long-term take-or-pay contracts. In addition, it owns three natural gas utility businesses and a growing portfolio of renewable energy assets supported by long-term power purchase agreements (PPAs). With nearly 98% of its earnings derived from cost-of-service and contracted cash flows – and about 80% indexed to inflation – its financial performance remains relatively resilient to economic cycles and market volatility.
Backed by this stable business model, the Calgary-based company has delivered an average annual total shareholder return of around 13% over the past 20 years. It has also increased its dividend for 31 consecutive years and currently offers an attractive yield of around 5.2%.
Despite the global transition toward cleaner energy, oil and natural gas could remain key components of the energy mix for years to come. Rising oil and natural gas production and demand across North America should continue to support the need for Enbridge’s infrastructure. At the same time, the company has identified approximately $50 billion in growth opportunities and plans to invest $10–$11 billion annually to advance these projects.
Amid these expansion initiatives, management expects adjusted earnings per share (EPS) and discounted cash flow (DCF) per share to grow at a steady, single-digit pace in the coming years. Supported by these solid growth prospects, Enbridge appears well-positioned to continue increasing its dividend, making it a compelling long-term investment.
Dollarama
My final pick is Dollarama (TSX:DOL), a leading discount retailer that has delivered an impressive 500% return over the past decade, representing an annualized gain of about 19.6%. Through its efficient direct-sourcing model and strong logistics network, the company has kept costs low, allowing it to offer a wide range of products at attractive price points. This value proposition drives consistent customer traffic, regardless of broader economic conditions, supporting steady financial growth and share price appreciation.
Looking ahead, Dollarama continues to expand its footprint and plans to increase its Canadian store count from 1,691 to 2,200 by fiscal 2034. It is also growing its presence in Australia, with the store count expected to rise from 401 to 700 during this period. In addition, increasing contributions from its investments in Central American Retail Sourcing (CARS) and Inversiones Comerciales Mexicanas (ICM) should further support its long-term growth.
Given these multiple growth drivers, Dollarama appears well-positioned to continue delivering solid returns over the next five years, making it an attractive addition to a long-term investment portfolio.
