Long-term investing is one of the most effective ways to build wealth across generations. It involves owning high-quality businesses with durable competitive advantages, strong earnings growth, and sustainable dividend-paying capabilities. Over time, investors can benefit from both capital appreciation and a growing income stream, while reinvesting dividends can significantly enhance returns through compounding. With patience and discipline, this approach can create substantial wealth for future generations.
Against this backdrop, let’s examine two high-quality Canadian stocks that could generate substantial long-term wealth for investors.
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Fortis
Fortis (TSX: FTS) is a compelling choice for long-term investors seeking to build wealth over generations. The company owns and operates nine electric and natural gas utilities, serving approximately 3.5 million customers across Canada, the United States, and the Caribbean. With its earnings backed by regulated utility assets operating in low-risk transmission and distribution businesses, its financial performance is relatively insulated from commodity price volatility and broader economic fluctuations.
This stability has translated into consistent shareholder returns, with Fortis delivering an average annual total shareholder return of 10.7% over the past two decades. The utility has also increased its dividend for 52 consecutive years and currently offers a dividend yield of 3.23%.
Looking ahead, Fortis is well-positioned to benefit from rising electricity demand, driven by economic expansion, manufacturing reshoring, electrification trends, and increased power demand from AI-driven data centres. To capitalize on these opportunities, the company plans to invest $28.8 billion through 2030, which could grow its rate base to $57.9 billion at an annualized rate of 7%. Combined with ongoing efficiency initiatives, preventive maintenance programs, and operational improvements, these investments should support steady earnings growth. Reflecting this confidence, management expects to increase its dividend by 4–6% annually through 2030, making Fortis an attractive stock for long-term wealth creation.
Enbridge
Enbridge (TSX: ENB) is another stock that deserves a place in a long-term portfolio. The diversified energy infrastructure company operates an extensive network of oil and natural gas pipelines, regulated utility assets, and renewable energy facilities backed by long-term power-purchase agreements. Its business model generates highly predictable cash flows, with most earnings coming from regulated assets and long-term take-or-pay contracts. In addition, approximately 80% of its earnings are protected through inflation-indexed mechanisms, helping shield the company from rising costs and economic uncertainty.
This stability has translated into strong shareholder returns over time. Over the past 20 years, Enbridge has delivered an average annual total shareholder return of 13.3%. The company has also paid dividends for more than seven decades and increased its payout for 31 consecutive years. It currently offers a forward dividend yield of 4.99%, providing investors with a healthy stream of passive income.
The ongoing expansion of oil and natural gas production across North America provides a favourable backdrop for Enbridge’s long-term growth. The company has identified approximately $50 billion in growth opportunities and plans to invest $10 billion to $11 billion annually to advance these projects. Supported by these investments, management expects earnings per share and distributable cash flow per share to grow by about 5% annually through the end of the decade. With plans to return $40-$45 billion to shareholders by 2030, Enbridge appears well-equipped to continue delivering attractive returns and growing dividends, making it an excellent choice for long-term wealth creation.
