It is hard to be a long-term investor when the Canadian stock market is so volatile. Yet, long-term thinking might be just the medicine Canadian investors need.
When you are a long-term investor, you don’t need to follow the day-to-day market noise. You just need to pick good stocks, hold them in your portfolio, and check up on them a few times a year. A volatile market can make for bad emotional investment decision-making.
Investing long-term can help you avoid this. If I had a five-year investment horizon, here are five stocks I’d be confident tucking away and holding through the volatility.
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WSP Global stock
WSP Global (TSX:WSP) has been a long-term Canadian compounder. Even after a 10% pullback this year, its stock is up 450% in the past 10 years.
WSP is one of the largest engineering, design, and advisory firms in the world. Massive tailwinds like electrification, infrastructure renewal, urbanization, and AI are all propelling demand for WSP’s services.
It is targeting mid-teens earnings per share growth in 2026. Its valuation is quite attractive after the pullback.
Descartes Systems
Another stock that is down today, but should be a good buy long term is Descartes Systems Group (TSX:DSG). It is down 15% this year, but up 310% in the past 10 years.
Descartes is a major provider in logistics and supply chain management solutions around the world. The company has high recurring revenues, strong profit margins, and a strong cash-rich balance sheet.
It is growing both organically and by acquisition. With software valuations depressed, it is likely to be very opportunistic in the coming year. DSG stock is trading at its lowest valuation in 10 years.
Firan Technology
If you want a small cap stock with a long growth horizon, Firan Technology (TSX:FTG) fits the bill. Unlike the stocks above, this stock has been riding strong momentum. It is up 71% this year and 781% in the past five years.
Firan produces essential circuit boards, cockpit components, and sensors for airplanes. It has exposure to both defence and commercial sectors. With defence spending rising, it continues to see contract wins.
This stock is not cheap like it was a year ago. However, it could still have a substantial ride upward in the five years ahead.
Pembina Pipeline
If you are more inclined to dividend stocks, Pembina Pipeline (TSX:PPL) looks well set. Its stock is up 11.7% this year and 59% in the past five years.
Pembina has a diversified energy infrastructure network across Western Canada. With conflicts in the Middle East, Canadian energy will become more and more important. Pembina has the network to get it to market. It believes it can grow 5–7% a year all the way to 2030.
This isn’t the fastest-growing stock. However, it is stable, and it has a growing 4.8% dividend yield.
Fortis stock
Like Pembina, Fortis (TSX:FTS) might not be the fastest-growing stock. However, in five years, I can bet that its stock will be higher and so will its dividend. This stock is up 15% this year and 40% in the past five years. It currently yields 3.3%.
Fortis is a leading regulated utility provider across North America. Its business is consistent and predictable. So are its growth plans. It is targeting 7% annual rate base growth over the coming five years.
That should support single-digit annual dividend growth over that time. It has a 52-year dividend growth track record backing that, so investors have a great chance of income growth ahead.
