Long-term investing is a powerful strategy for building meaningful wealth, allowing investors to harness the benefits of compounding while reducing the impact of short-term market volatility. However, success depends on careful stock selection—focusing on high-quality companies with proven business models and strong financial foundations. With this in mind, here are four high-quality stocks with the potential to deliver healthy long-term returns.
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Dollarama
Dollarama (TSX: DOL) has delivered a remarkable 520% return over the past decade, translating to an annualized gain of about 20%. Its efficient direct-sourcing model and streamlined logistics enable it to offer a broad range of consumer products at compelling price points, supporting steady customer traffic across economic cycles. Continued store expansion has also strengthened its financial performance and fueled share price growth.
Looking ahead, the discount retailer plans to increase its Canadian store count from 1,691 to 2,200 by fiscal 2034, while expanding its Australian network from 401 to 700 locations. Additionally, rising contributions from its investments in Central American Retail Sourcing (CARS) and Inversiones Comerciales Mexicanas (ICM) could drive further growth. With a resilient business model and strong expansion pipeline, Dollarama remains an attractive long-term investment.
Fortis
Fortis (TSX: FTS) is an electricity and natural gas utility serving about 3.5 million customers across Canada, the United States, and the Caribbean. Its regulated asset base and focus on low-risk transmission and distribution assets help deliver stable earnings and predictable cash flows, largely insulated from economic volatility.
Backed by this stability, Fortis has generated an average annual total shareholder return of 10.78% over the past 20 years. It has also increased its dividend for the past 52 years and currently offers a forward yield of 3.21%.
Looking ahead, rising energy demand supports its long-term growth outlook. The company plans to invest $28.8 billion through 2030, targeting a 7% annual rate base growth to $57.9 billion. Along with cost efficiencies, these investments should drive steady earnings and dividend growth, making Fortis a solid long-term investment.
Waste Connections
Third on my list is Waste Connections (TSX: WCN), a non-hazardous solid waste management company operating primarily in exclusive and secondary markets across the United States and Canada. The company has steadily expanded its footprint through a mix of strategic acquisitions and organic growth, driving both its financial performance and share price. Over the past decade, it has delivered an average annual shareholder return of 16.39%.
WCN continues to pursue growth through acquisitions and internal initiatives. It has already launched five renewable natural gas (RNG) facilities, with more projects expected to come online soon. Additionally, management plans to commission a new state-of-the-art facility next year to support future expansion. The company has also identified several private acquisition targets that could collectively add around $5 billion in annualized revenue. With these growth drivers in place, WCN remains well-positioned for strong long-term returns.
Enbridge
My final pick is Enbridge (TSX: ENB), an energy infrastructure company with a diversified portfolio of pipelines, utility assets, and renewable energy operations. About 98% of its earnings come from long-term take-or-pay contracts and regulated assets, with nearly 80% of those indexed to inflation, helping shield it from rising costs. This stability has supported an average annual shareholder return of 10.4% over the past decade. The company has also increased its dividend for 31 consecutive years and currently offers a forward yield of 5.16%.
Looking ahead, rising oil and natural gas production and demand in North America could support Enbridge’s growth. The company has identified $50 billion in expansion opportunities and plans to invest $10–$11 billion annually. These investments should drive steady earnings and support future dividend and share price growth, making Enbridge an ideal buy for long-term investors.
