If I were building a portfolio that I hoped would be worth considerably more for my family 10 or 20 years from now, I wouldn’t start by asking which Canadian stocks could jump the most this year. Rather than overcomplicate things, I’d ask which businesses I can realistically see myself owning decades from now. That naturally leads me toward companies providing services that aren’t going away.
In this article, I’ll look at three top dividend-paying stocks that I think have the staying power and growth potential to help build family wealth over the long run.
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Canadian National Railway stock
Let’s start with Canadian National Railway (TSX:CNR), or CN, a wealth-building stock backed by an extensive rail network that plays an important role in North American trade.
The company transports natural resources, manufactured goods, and finished products while providing intermodal, trucking, and supply chain services. After climbing 37% over the last year, its stock currently trades at $178.70 per share, giving the railway a market cap of $108 billion. It also offers a 2% annualized dividend yield.
That strong run has been supported by improving business momentum. In the second quarter, CN’s revenue jumped 11% year-over-year (YoY) to $4.8 billion, helped by strong grain and energy volumes. The railway’s net profit rose 7% YoY to $1.2 billion, while adjusted diluted earnings increased 11% to $2.08 per share.
In addition, continued capital investments, better fuel efficiency, and strong freight demand could support CN’s further growth, making it an attractive stock for building family wealth over time.
Waste Connections stock
Another quality Canadian stock worth considering for long-term wealth creation is Waste Connections (TSX:WCN), as the essential nature of its services could bring valuable stability to your portfolio.
This company mainly provides waste collection, transfer, disposal, recycling, and related services to about nine million customers. Following the 10% rise in the last year, WCN stock now trades at $233.35 per share with a market cap of $58.7 billion and offers a 0.8% annualized dividend yield.
Waste Connections’s second-quarter revenue climbed 6.4% YoY to US$2.6 billion. Its adjusted earnings rose to US$1.50 per share from US$1.29 a year ago, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) surged 6.8% to US$840 million.
Acquisitions remain another important growth driver for the company, with deals completed so far contributing more than US$100 million in annualized revenue.
Overall, its essential services, acquisition strategy, and strong cash generation make Waste Connections an appealing long-term stock.
Intact Financial stock
For one more family wealth-building idea, Intact Financial (TSX:IFC) could be worth considering on the TSX today.
Intact is Canada’s largest property and casualty insurer, with operations spanning Canada, the United States, the United Kingdom, Ireland, and Europe. After climbing 6% over the last year, IFC stock currently trades at $264.62 per share with a market cap of $46.5 billion and has a 2.2% annualized dividend yield.
While Intact just faced a tough quarter, its underlying growth remained encouraging. The company’s operating direct premiums written in the second quarter rose 4% YoY to $7.3 billion, even as higher catastrophe and large losses pushed underwriting income down 61% to $305 million and net profit down 17% to $720 million.
Even so, Intact’s book value per share climbed 13% YoY to $111.73, while operating return on equity remained strong at 17%. The insurer also finished the quarter with a $3.8 billion capital margin after completing $181 million in share buybacks.
For long-term investors, Intact’s strong capital position, international reach, and goal of growing net operating income per share by 10% annually over time give this Canadian stock plenty of family wealth-building appeal.
