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

Strong businesses with durable competitive advantages often create the best long-term returns, and these five Canadian stocks have the financial strength and growth plans to keep rewarding patient investors well beyond today’s market headlines.

Jitendra Parashar

Author Bio Jitendra Parashar is a financial journalist who has been writing for The Motley Fool Canada since June 2020. With more than 13 years of experience in financial journalism, equity research, and market analysis, he helps investors understand market developments and identify long-term investment opportunities. Before joining The Motley Fool Canada, Jitendra spent several years at Market Realist covering U.S. equities, major economic developments, and developments in the automotive and technology industries. He also worked in commodity and currency research at brokerage firms, gaining insight into how economic trends, central bank decisions, and geopolitical events influence financial markets. Jitendra writes for beginner investors, dividend seekers, and Canadians looking to build wealth over the long term. He also contributes to the daily TSX Today series, explaining key Canadian market developments and highlighting news investors should watch. Based in India, Jitendra follows Canadian and U.S. markets closely. Outside of work, he enjoys travelling in the Himalayas, street and nature photography, and exploring programming and artificial intelligence. Education MBA in Finance and International Business Bachelor's degree in Journalism Areas of Expertise Canadian and U.S. financial markets, long-term equity investing, dividend investing, macroeconomic and geopolitical trends, automotive stocks, emerging technologies, and artificial intelligence. Social Media Profiles LinkedIn Muck Rack Favorite Investment Quote “Simplicity is the master key to financial success.” — John C. Bogle

Published July 28, 4:00 pm EDT

Some Canadian stocks are ideal for quick gains, while others reward investors who give them time to compound. In this article, I’ll spotlight five Canadian companies with durable businesses, improving financials, and growth plans that could make them rewarding holdings for the next five years.

Hourglass and stock price chart — Source: Getty Images

Alimentation Couche-Tard stock

Let’s begin with Alimentation Couche-Tard (TSX: ATD), a proven Canadian compounder with the scale and discipline needed for a five-year holding period.

After gaining 21% over the last year, ATD stock trades at $89.66 per share with an $82.5 billion market cap and a 1% annualized dividend yield. The company operates one of the world’s largest convenience store and fuel retail networks through brands such as Circle K and Couche-Tard.

Its financial growth trends continue to show strong earnings with the help of higher revenue and improved U.S. same-store merchandise sales.

Meanwhile, Couche-Tard continues expanding its food and beverage offerings, opening new stores, and capturing synergies from the acquisition of select European retail assets of TotalEnergies. Its consistent execution makes ATD an attractive stock to buy and hold for the next five years.

Teck Resources stock

My second stock on the list is Teck Resources (TSX: TECK.B), one of Canada’s leading mining firms with major copper and zinc operations across the Americas. It currently trades at $84.32 per share with a $41.4 billion market cap and a 0.6% annualized dividend yield. The shares have surged 86% over the last year.

Its second quarter was strong as its adjusted revenue jumped 87% year-over-year (YoY), while adjusted earnings reached $948 million. Higher copper prices and stronger operating performance supported its impressive results.

Teck is working to optimize key mining assets, expand critical mineral production, and complete its Anglo American acquisition targeting US$800 million in annual synergies.

Teck’s stronger balance sheet and copper-focused growth strategy make the stock an appealing long-term investment.

Celestica stock

For investors seeking exposure to the growth of artificial intelligence (AI), Celestica (TSX: CLS) could be one of the strongest Canadian stocks to own.

Following a 93% rally over the last year, CLS stock now trades at $449.49 per share with a $51.8 billion market cap. The company provides advanced manufacturing, hardware platforms, and supply chain solutions for leading technology customers.

In the June quarter, Celestica’s revenue soared 62% YoY to US$4.7 billion, while adjusted earnings jumped 83% to US$2.54 per share with the help of solid growth across segments.

Celestica continues investing in manufacturing capacity, AI compute platforms, and next-generation networking products, making it a compelling stock to own for years.

EQB stock

If you want a Canadian financial stock with plenty of room to grow, EQB (TSX: EQB) is worth considering. Through EQ Bank, the company has built one of Canada’s leading digital banking platforms.

Following a 34% rally over the last 12 months, EQB stock now trades at $140 per share with a $6 billion market cap and offers a 1.7% annualized dividend yield.

In the April quarter, the company’s EQ Bank customers grew 18% YoY, deposits surpassed $10 billion, and commercial loans under management increased 17%.

Its recently completed PC Financial acquisition is expected to expand its customer base to 3.3 million Canadians while supporting more payments and non-interest revenue opportunities. Although short-term integration costs remain, EQB’s long-term digital banking strategy makes it an attractive stock to hold.

Hydro One stock

To round out this list, I’d include Hydro One (TSX: H), which offers dependable growth backed by regulated utility operations.

After advancing by 23% over the last year, Hydro One stock currently trades at $59.79 per share with a $36 billion market cap and has a 2.4% annualized dividend yield.

In the first quarter, Hydro’s revenue rose 10% YoY, while earnings improved to $0.65 per share from $0.60 a year ago. Higher approved electricity rates, stronger demand, and disciplined operating costs supported earnings despite higher financing costs.

Hydro One is investing heavily in new transmission projects and modernizing Ontario’s electricity grid to support rising power demand. Overall, its regulated business model, predictable earnings, and steady dividend growth make it an excellent stock to buy and hold for the next five years.