Long-term investors should focus on businesses with durable demand, strong balance sheets, and the kind of cash generation that can keep compounding through different market cycles. In Canada, that usually means looking past short-term noise and toward companies with real operating momentum, disciplined capital allocation, and shareholder-friendly track records.
These three stocks check off most of the boxes I think about when considering companies as potential long-term holdings.
Without further ado, let’s dive in!
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Canadian National Railway
As a barometre of North American growth (and a way to play long-term economic growth in this region), Canadian National Railway (TSX: CNR) remains one of my top picks.
Indeed, the company is one of the cleanest long-term compounders on the TSX. That’s because it sits at the center of North American trade and logistics, providing the aforementioned exposure to long-term growth trends investors are after.
CN Rail continues to show strong operating performance, and its latest quarterly update highlighted management’s focus on debt metrics and balance-sheet discipline. These results included strong year-over-year free cash flow growth and yet another dividend payout.
Given that we’re not building any more railroads and other forms of transportation are in flux due to sky-high gas prices, this is an intriguing play despite its relatively muted capital appreciation returns in recent years.
Brookfield Infrastructure Partners
Another industrial play, but one I think can fit most investor portfolios right now, Brookfield Infrastructure Partners (TSX: BIP.UN) is another top holding I think investors can sleep well at night owning for the long term.
The company owns essential assets that tend to produce stable, contracted, and regulated cash flows. In its first-quarter 2026 results, the company reported funds from operations per unit of $0.90, which was up 10% year over year. More notably, CN Rail saw particularly strong gains in data and midstream operations.
That mix matters because it gives Brookfield a blend of defensive infrastructure cash flow and higher-growth themes tied to digitalization and global energy demand. So, for those looking to invest in the future and do so with a company that’s shown the ability to return significant shareholder capital and continue to generate strong returns on equity, this is an excellent pick in my books.
Shopify
Now, for a much more growth-oriented name, I continue to think is one of the best long-term compounders on the TSX: Shopify (TSX: SHOP).
Shopify is no longer just a story stock. Rather, this is a company which has fundamentals that are increasingly doing the talking.
In its first quarter of 2026, Shopify reported 34% revenue growth and a 15% free cash flow margin. Those strong numbers represent an incredibly robust financial picture, which is important given that Shopify is still investing heavily in expansion and product development.
The company also generated $476 million in free cash flow, showing that growth is now coming with meaningful profitability underneath it. That matters because investors are no longer paying for a vague promise. Instead, they are buying a platform with scale, operating leverage, and a growing economic moat in e-commerce infrastructure.
I think the underlying growth trends tied to the e-commerce rollout globally are expected to continue. Thus, this is a top stock I think is worth adding at or below the $150-per-share level right now.
