There’s no question that when it comes to saving your money and investing in Canadian stocks, taking a long-term approach is one of the best strategies you can use.
And for the most part, investors understand the basic idea. You buy high-quality stocks, hold them for years to mitigate short-term volatility, and let them continue to grow while compounding does the work.
However, while many Canadians understand that buying stocks for the long haul is ideal, what can be harder to figure out is what actually makes a stock worth holding for that long in the first place.
Long-term investing isn’t just about finding companies with reliable cash flow or strong dividends. It’s also about finding businesses that operate in strong industries, have durable competitive advantages, maintain solid balance sheets, and can continue executing even as the broader economy changes over time.
That’s what gives you the confidence to invest for the long haul. Because holding a stock for 10 years isn’t about ignoring volatility, it’s about owning something you trust enough that you don’t feel the need to constantly re-evaluate it every time the market moves.
And when you start thinking that way, a certain type of Canadian stock stands out pretty quickly.
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Reliable Canadian stocks that can anchor a portfolio
If you’re building a portfolio of long-term investments, there’s no question that the foundation should be reliability.
That means finding businesses that consistently generate cash flow, operate in essential industries, and continue to perform across different environments.
That’s why one Canadian stock that continues to be a core holding in my portfolio is Brookfield Infrastructure Partners (TSX: BIP.UN).
Brookfield is an incredibly reliable long-term investment with its massive portfolio of critical infrastructure assets located around the world.
It generates predictable cash flow through long-term contracts, pays an attractive 5% dividend yield, and continues to grow over the long haul through disciplined capital allocation.
Enbridge (TSX: ENB) is another ultra-reliable stock that Canadians can buy and hold for the long haul.
It operates one of the largest energy infrastructure networks in North America, with most of its earnings supported by long-term contracts and regulated assets.
That’s what makes its cash flow so reliable, and that’s what’s allowed Enbridge to increase its dividend every year for three straight decades.
On top of those two infrastructure stocks, another high-quality stock to consider for the core of your portfolio is Nutrien (TSX: NTR).
It operates in the agricultural space, which is inherently cyclical, but at the same time, it’s tied to global food demand, which isn’t going anywhere.
That gives it a massive long-term tailwind. Furthermore, because of its scale, vertically integrated operations, and dominant position in the industry, it’s one of the best stocks to buy and hold for years.
Growth stocks that still offer long-term conviction
As important as building the core of your portfolio is, though, investing for the next decade and beyond isn’t only about stability.
You also want exposure to companies that can continue to expand their operations and increase earnings over time, while still being reliable and predictable enough that you don’t feel the need to constantly manage the position.
That’s why Dollarama (TSX: DOL) is one of the best Canadian stocks to buy and hold for the long haul.
The discount retailer runs a simple business with a strong competitive position, consistent execution, and a long runway for expansion, allowing it to grow earnings year after year across different economic environments.
Jamieson Wellness (TSX: JWEL) is another ultra-reliable growth stock that you can comfortably buy and hold for a decade.
As one of the best-known health and wellness brands in Canada, it not only benefits from its position in the market but also operates in a defensive industry with massive long-term tailwinds, allowing it to continue expanding both domestically and internationally.
So, although Jamieson and Dollarama offer attractive long-term growth potential, they aren’t high-risk companies. They still operate steady, reliable businesses, which is what makes them ideal long-term investments.
Because when you combine reliable, cash-flow-generating businesses with steady, predictable growth companies, you end up with a portfolio that you don’t just hold for 10 years, you hold because you never feel the need to sell in the first place.
