5 Canadian Stocks to Buy and Hold for the Next 5 Years

These Canadian stocks with fundamentally strong businesses are positioned to benefit from lasting, multi-year demand trends.

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Key Points
  • These five Canadian stocks have strong long-term growth potential and resilient business models.
  • A few of these high-quality Canadian stocks have recently declined, creating potential buying opportunities for investors.
  • The companies span energy, waste infrastructure, retail, e-commerce, and fashion, offering diversification alongside catalysts such as recurring revenue, expansion plans, and improving cash flow.

Investing in Canadian stocks with a long-term outlook, such as five years, can be a solid strategy for building wealth. While markets may experience short-term volatility, these fluctuations often even out over time, allowing investors to benefit from the long-term growth potential that stocks have historically delivered.

When investing for the next five years, focus on stocks likely to benefit from lasting, multi-year demand trends. It can also be smart to include fundamentally strong businesses whose share prices have recently pulled back, giving investors an opportunity to buy quality stocks at more attractive valuations. At the same time, maintaining a diversified portfolio is important to help manage risk.

Against this backdrop, here are five Canadian stocks to buy and hold for the next five years

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Source: Getty Images

Canadian stock #1: Enerflex

Enerflex (TSX: EFX) is a compelling stock to hold for the next five years. The company is benefiting from rising demand for natural gas infrastructure and its diversified energy solutions business. Its vertically integrated model, contract-based operations, and recurring revenue streams provide stability and help reduce the impact of market volatility.

Growth should be driven by a strong backlog in its Engineered Systems division, steady cash flow from long-term Energy Infrastructure contracts, and higher-margin recurring revenue from After-Market Services. In addition, increasing focus on energy security, lower-carbon energy solutions, debt reduction, and stronger free cash flow should support Enerflex’s growth.

Canadian stock #2: SECURE Waste Infrastructure

SECURE Waste Infrastructure (TSX: SES) is another compelling stock to hold for the next five years. The company provides waste management, treatment, and disposal services, along with infrastructure services, to industrial and energy customers, giving it a stable, diversified business model.

A large portion of SECURE’s revenue comes from contracts, which improves cash flow visibility and reduces exposure to commodity price swings. This financial stability supports efficient capital allocation and future expansion.

Its growth prospects remain promising as new water infrastructure projects begin contributing to revenue and capacity expands in high-demand regions. Improvements in its metals recycling business and potential acquisitions could further strengthen earnings and recurring cash flow. Overall, SECURE appears well-positioned for steady growth and long-term share price gains.

Canadian stock #3: Dollarama

Dollarama (TSX: DOL) is an attractive Canadian stock to buy and hold for the next five years. The discount retailer’s shares have fallen about 16% this year, creating a potential buying opportunity.

Its business model of selling everyday products at low, fixed prices helps maintain steady demand across economic conditions. A balanced mix of national and private-label brands also supports sales and profit margins. Dollarama’s strong earnings have enabled it to raise dividends consistently since 2011, rewarding shareholders over time.

Future growth drivers include store expansion, international opportunities, delivery partnerships, and efficient sourcing, all of which could boost earnings, dividends, and long-term share performance.

Canadian stock #4: Shopify

Shopify (TSX: SHOP) stock has fallen more than 33% this year amid macroeconomic uncertainty, valuation concerns, and fears that artificial intelligence (AI) could disrupt software companies. Moreover, concerns over margins amid higher capital expenditures weighed on SHOP stock.

However, this presents a solid buying opportunity. While these investments may pressure short-term profitability, they could strengthen the company’s long-term competitive position.

Despite recent challenges, Shopify’s fundamentals remain solid. Growth in merchants, strong adoption of Shop Pay, momentum in B2B and offline commerce, and demand for Shopify Plus continue to support its long-term growth outlook. Overall, the Canadian tech giant is poised to rebound strongly.

Canadian stock #5

Aritzia (TSX: ATZ) is another top stock to hold for the next five years. Since fiscal 2022, the Canadian fashion retailer has posted impressive growth, with revenue increasing about 25% annually and adjusted net income rising roughly 22% per year. Its e-commerce business has also been a key driver, growing around 23% annually.

Aritzia’s growth outlook remains solid, supported by strong customer demand, expanding U.S. boutiques, rising brand awareness, and continued momentum in online sales, positioning the company for sustained double-digit growth and attractive long-term returns.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aritzia and Shopify. The Motley Fool recommends Dollarama, Enerflex, and Secure Waste Infrastructure Corp. The Motley Fool has a disclosure policy.

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