Canadian equity markets have rebounded strongly from their March lows, supported by easing geopolitical tensions and renewed optimism about a potential ceasefire and ongoing peace talks between the United States and Iran. The S&P/TSX Composite Index has climbed roughly 8% from its recent lows, reflecting improving investor sentiment.
Against this backdrop, let’s explore three Canadian blue-chip stocks that investors can confidently buy and hold for the long term.
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Dollarama
Dollarama (TSX:DOL) is a leading Canadian discount retailer that has delivered resilient same-store sales even in a challenging macroeconomic environment, supported by its strong value proposition. Its direct-sourcing model and efficient logistics network help keep costs low, enabling the company to offer a broad range of products at competitive prices.
The company also continues to expand its footprint. It plans to grow its Canadian store network from 1,691 locations to 2,200 by 2034, while increasing its Australian presence from 402 to 700 stores. In addition, its exposure to Dollarcity, the operator of 712 discount stores across Latin America, provides further growth potential. Dollarcity aims to expand to 1,050 stores by 2031, and Dollarama has the option to increase its stake from 60.1% to 70% by the end of next year.
Despite these strong fundamentals, the stock has come under pressure following its fourth-quarter results, declining more than 18% from recent highs. Given its solid growth outlook, this pullback could present a compelling opportunity for investors to accumulate the stock and benefit from long-term upside.
Fortis
Fortis (TSX: FTS) is a Canadian utility company serving approximately 3.5 million customers across the United States, Canada, and the Caribbean, providing electricity and natural gas. With a predominantly regulated asset base and a focus on low-risk transmission and distribution operations, its financial performance remains relatively insulated from economic cycles and market volatility. This stable business model has enabled the company to deliver an average annual shareholder return of 10.8% over the past 20 years. Fortis has also increased its dividend for 52 consecutive years and currently offers a forward yield of around 3.3%.
Looking ahead, rising electricity demand—driven by economic growth, the electrification of transportation, and the expansion of AI-focused data centers—is expected to support continued growth. To capitalize on these trends, Fortis plans to invest $28.8 billion through 2030 to expand its asset base. These investments could grow the company’s rate base at an annualized rate of 7%, reaching $57.9 billion by the end of the decade, thereby supporting steady earnings, dividend growth, and long-term share price appreciation.
Given its stability, consistent dividend growth, and solid expansion pipeline, Fortis stands out as an attractive long-term investment.
Canadian Natural Resources
Another stock I’m bullish on is Canadian Natural Resources (TSX: CNQ), which has delivered an impressive 40% return this year. Strong oil and natural gas prices, along with solid fourth-quarter results, have supported its recent rally. In addition, ongoing geopolitical tensions and supply disruptions have helped sustain elevated energy prices, creating a favourable environment for producers such as CNQ.
The company is also investing to strengthen its production capabilities, with a $6.88 billion capital program planned for this year. It expects average production to range between 1,615 and 1,665 thousand barrels of oil equivalent per day, with the midpoint representing a 4.4% increase from the previous year. Over the long term, CNQ’s outlook remains robust, supported by proven reserves of approximately five billion barrels of oil equivalent and a reserve life index of 32 years.
CNQ has also been highly shareholder-friendly, increasing its dividend at an annualized rate of over 20% for the past 26 years and currently offering a forward yield of around 3.86%. Its balance sheet also looks solid with a net debt-to-adjusted earnings before interest, taxes, depreciation, and amortization ratio of just 0.7.
Given its solid operational performance, disciplined capital allocation, and a strong commodity backdrop, CNQ appears well-positioned to sustain its momentum, making it an attractive long-term investment.
