Canadian Stocks to Buy Today and Hold for the Next 7 Years

These three Canadian compounders could reward patient investors over seven years, even if the ride isn’t smooth.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published May 26, 4:00 pm EDT

| More on: ATDCNRCSUTOI

Key Points

Canadian National Railway is a hard-to-replicate network that generates strong cash flow and returns it through buybacks and dividends.
Couche-Tard keeps compounding through disciplined store expansion, acquisitions, and margin improvements in a resilient convenience business.
Topicus grows through recurring vertical-software revenue and steady acquisitions, but results can be lumpier and higher risk.

Seven years can change a portfolio. That’s long enough for great companies to compound through recessions, rate cuts, inflation scares, and market mood swings. It’s also long enough for weak businesses to show their cracks. So investors looking to buy today need more than a good story. They need companies with staying power, growth options, and management teams that know how to use cash well.

Canadian National Railway (TSX:CNR), Alimentation Couche-Tard (TSX:ATD), and Topicus.com (TSXV:TOI) fit that mix. They don’t all look cheap at first glance. They also won’t all move in a straight line. Yet each one offers a different route to long-term growth.

hand stacks coins — Source: Getty Images

CNR

The Canadian National Railway connects ports, farms, factories, energy markets, and consumers across North America. That makes it a backbone business, not a passing trend. The latest quarter showed why investors keep coming back. CNR reported first-quarter revenue of $4.4 billion and free cash flow of $900 million, up 44% year over year. It also set a first-quarter record for revenue ton miles and fuel efficiency. That tells investors the company can still squeeze more productivity from a mature network.

The next seven years should bring more demand from trade, agriculture, autos, intermodal shipping, and infrastructure spending. CNR stock can also support returns through dividends and buybacks. It repurchased about $869 million of shares in the first quarter alone.

The risk is the economy. Rail volumes can soften when customers slow down. Labour issues, weather, and fuel costs can also hurt results. Still, CNR stock remains the kind of stock investors can buy for durability first and growth second.

ATD

Couche-Tard brings a different kind of compounding. The company runs convenience stores and gas stations under banners such as Circle K. That might not sound exciting, yet Couche-Tard built a global growth machine by buying stores, improving operations, and expanding margins.

The latest results looked much stronger than the market gave it credit for. In its third quarter of fiscal 2026, Couche-Tard grew adjusted earnings per share by 19.1% to US$0.81. Merchandise and service revenue rose 8.7% to US$5.8 billion, while the company opened 37 new stores and had another 58 under construction.

For a seven-year hold, Couche-Tard still has multiple levers. It can open new stores, make acquisitions, grow private-label sales, improve loyalty programs, and keep buying back shares. The potential Seven & i deal may or may not happen, but Couche-Tard doesn’t need one giant acquisition to keep compounding.

The risk comes from fuel demand and consumer pressure. If drivers buy less gas or shoppers trade down, sales can wobble. Even so, the company’s long history of disciplined deals and margin control makes it one of Canada’s best retail growth stories.

TOI

Topicus.com is the higher-risk pick, but perhaps the most interesting. It buys and operates vertical market software companies, mainly in Europe. These are niche businesses that serve specific industries, from education and health care to government and finance.

The appeal comes from recurring software revenue and a proven acquisition playbook linked to Constellation Software. In the first quarter of 2026, Topicus grew revenue 23% to €435.7 million, with 5% organic growth. Free cash flow available to shareholders rose 2% to €165.4 million.

The next seven years could reward Topicus if it keeps buying small software companies at sensible prices and lets them compound. Europe remains fragmented, giving it plenty of targets. However, net income fell in the latest quarter, and acquisitions can create uneven results. That’s why Topicus suits patient investors more than nervous ones.

Bottom line

Together, CNR, ATD, and TOI offer transport, retail, and software exposure. Hold all three, and investors get a compact Canadian growth basket built for more than just the next headline alone.