When building a portfolio for the long haul, I’m less interested in predicting which stock will soar next year. Instead, I want businesses I can confidently hold through recessions, inflation, market crashes, and everything in between. That’s what makes these three Canadian stocks some of the safest businesses to own forever.
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Loblaw: A business Canadians can’t live without
Loblaw (TSX:L) has one of the most straightforward investment cases in Canada. It operates the country’s largest food retail business while also owning Shoppers Drug Mart and Pharmaprix in Quebec.
Why does that matter? Canadians need groceries and prescription medications regardless of whether the economy is booming or struggling. That gives Loblaw a defensive foundation that many other businesses simply don’t have.
The company’s PC Optimum loyalty program adds another layer to its competitive advantage. It encourages customers to return while generating valuable first-party data that Loblaw can use to improve marketing, merchandising, and supply-chain efficiency.
And the financial results back up the thesis. From 2015 to 2025, Loblaw delivered consistent revenue growth, while adjusted earnings per share increased at roughly an 11% compound annual growth rate. That earnings growth has supported similarly attractive dividend growth.
The catch is valuation. After gaining roughly 114% over the past three years, Loblaw shares aren’t exactly cheap. At around 25 times earnings, investors may want to wait for a more attractive entry point. But for a stock to hold for decades, I’d rather pay a reasonable price for an exceptional business than chase a bargain that lacks staying power.
Brookfield Infrastructure: Built for the long haul
Brookfield Infrastructure Partners L.P. (TSX:BIP.UN) offers something different: exposure to essential infrastructure around the world.
Its assets span utilities, transportation, energy, and data infrastructure across roughly 25 countries in major markets. This geographic and business diversification helps reduce dependence on any single economy while creating significant barriers to entry.
It also has an important inflation hedge. About 85% of BIP’s cash flows are directly indexed to inflation or supported by contractual escalators. That can help protect cash flows as operating costs rise.
Management’s ongoing capital-recycling strategy is another reason I like the stock. BIP can sell mature assets when valuations are attractive and redeploy the proceeds into new investments with potentially higher returns.
For income investors, Brookfield Infrastructure’s track record is compelling. BIP has increased its cash distribution for roughly 18 consecutive years, while its 10-year distribution growth rate was about 7.3%.
Royal Bank: A core Canadian holding
Finally, Royal Bank of Canada (TSX:RY) looks like the kind of financial stock investors can own forever.
RBC benefits from enormous scale, a powerful brand, and diversified businesses spanning personal and commercial banking, wealth management, and capital markets. These diversified revenue streams can provide resilience when conditions weaken in one part of the economy.
What’s the catch? A valuation that’s the highest in at least 20 years. Can’t blame the stock as adjusted earnings per share jumped about 18% in the first half of the fiscal year, which is extraordinary. Economic downturns or even a normalization of earnings growth could lead to a selloff or consolidation in the stock.
The bottom line
No stock is risk-free and valuation always matters. But when I think about stocks I’d feel safest holding forever, I want businesses with staying power above all else.
Loblaw, Brookfield Infrastructure, and RBC fit that description. They operate in essential industries, possess meaningful competitive advantages, and have demonstrated an ability to return capital to shareholders. For a Canadian investor focused on long-term wealth creation, that combination is hard to ignore.
That said, investors should aim to buy shares at rational valuations. A market-wide correction would be a fabulous time to back up the truck.
