Long-term investing is an effective way to build wealth, as it benefits from compounding while reducing the impact of short-term market volatility. It also lowers transaction costs and eliminates the need to constantly track daily price movements, making it a convenient strategy for investors. However, investors should focus on fundamentally strong companies with established businesses, stable cash flows, and solid growth prospects. With this in mind, here are my five top stock picks to buy and hold for the next decade.
Source: Getty Images
Dollarama
Dollarama (TSX: DOL) is an attractive stock for long-term investors due to its resilient business model and strong growth prospects. Supported by its efficient direct-sourcing strategy and robust logistics network, the retailer offers a broad range of consumer products at competitive prices. These compelling value offerings help Dollarama generate healthy same-store sales growth regardless of broader economic conditions.
Meanwhile, the retailer continues to expand its store network and expects to grow its Canadian footprint from 1,691 stores to 2,200 by fiscal 2034, while increasing its Australian store count from 402 to 700. In addition, the rising contribution from Dollarcity, in which Dollarama holds a 60.1% stake, could further support its long-term financial growth. Given its dependable business model and multiple growth drivers, Dollarama appears well-positioned to deliver solid long-term returns for investors.
Fortis
Another compelling stock for long-term investors is Fortis (TSX: FTS), which operates regulated electric and natural gas utility businesses serving 3.5 million customers. Since most of its assets are engaged in low-risk transmission and distribution operations, its financials remain resilient during economic downturns and market volatility.
Supported by stable cash flows, Fortis has increased its dividend for 52 consecutive years and currently offers a yield of 3.3%. Meanwhile, the company plans to invest $28.8 billion through 2030 to expand its asset base and meet rising energy demand. These investments could drive annualized rate-base growth of 7%, supporting steady earnings and dividend growth. Management also expects to raise its dividend by 4–6% annually through 2030, making Fortis an attractive option for investors seeking stable long-term returns and growing passive income.
Enbridge
Enbridge (TSX: ENB) operates a diversified portfolio of contracted midstream energy assets, regulated utilities, and renewable energy projects backed by long-term power purchase agreements (PPAs). Approximately 98% of its earnings come from long-term contracts and regulated assets, while nearly 80% of its income is indexed to inflation. This structure makes the company’s financial performance more resilient to economic cycles, commodity price swings, and broader market volatility.
Supported by its stable cash flows, Enbridge has increased its dividend for 31 consecutive years and currently offers an attractive dividend yield of 5%. Meanwhile, the company continues to expand its asset base through annual capital investments of $10 billion to $11 billion to capitalize on rising energy demand. Management also expects to return $40 billion to $45 billion to shareholders over the next five years. Given its reliable business model, solid growth prospects, and attractive yield, Enbridge appears to be a strong long-term investment option.
5N Plus
My fourth pick for long-term investors is 5N Plus (TSX: VNP), which manufactures specialty semiconductors and performance materials for high-growth industries. Demand for its specialty semiconductor products remains strong, driven by structural growth in key end markets such as renewable energy and space-based solar power. Given its expertise in ultra-high-purity semiconductor compounds, the company appears well-positioned to capitalize on these long-term industry trends.
Meanwhile, 5N Plus continues to expand its production capabilities to meet rising demand. The company expects to increase solar cell production capacity at AZUR SPACE Solar Power GmbH by 25% this year. In addition, a US$18.1 million grant from the U.S. government will support the expansion of its germanium recycling and refining capabilities at its St. George, Utah, facility, strengthening supply chains for optics and solar germanium crystals. Given these growth drivers, 5N Plus appears well-positioned for long-term growth.
MDA Space
Amid rising demand for connectivity services, growing national security and defence spending, and renewed interest in space exploration, the global space industry continues to expand rapidly. The World Economic Forum projects the global space economy to grow at an annualized rate of 11% and reach $1.8 trillion by 2035. Given this favourable backdrop, I have chosen MDA Space (TSX: MDA), which provides advanced technologies and services to the rapidly evolving global space industry, as my final pick.
Supported by strong industry tailwinds, the company has built a robust project pipeline valued at approximately $40 billion over the next five years across both government and commercial customers. To meet rising demand, MDA Space plans to invest between $225 million and $275 million this year to expand production capacity and advance its chip development initiatives. Given its strong growth outlook and expanding opportunities in the global space sector, MDA Space appears well-positioned to deliver solid long-term returns for investors.
