The Only 4 Canadian Stocks I’d Hold Forever

These Canadian stocks have the potential to outperform the broader market and create significant wealth over the years.

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Key Points
  • These Canadian stocks are backed by strong fundamentals, durable growth opportunities, and the ability to deliver profitable growth.
  • I’d focus on companies with resilient business model and ability to adapt to changing market conditions and outperform over time.
  • Diversifying across industries could help manage risk and generate solid total returns.

For a long-term investment strategy, I’d focus on Canadian stocks with strong fundamentals, durable growth opportunities, a proven ability to generate profitable returns, and the resilience to navigate changing market conditions. These stocks could outperform the broader market and build significant wealth over time.

I’d also place a strong emphasis on diversification, as holding companies across different industries can help reduce risk.

With those factors in mind, here are four Canadian stocks I’d be comfortable holding forever.

dividends grow over time

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Aritzia

Aritzia (TSX: ATZ) is one of the top Canadian stocks that I’d hold forever. The luxury fashion retailer has been consistently delivering double-digit growth in both revenue and earnings, which is why its shares have outperformed the broader market over the years. Its solid growth reflects durable consumer demand, a growing network of boutiques, and strong customer engagement across both physical stores and digital channels.

The company is likely to benefit from increased full-price sales, efficient inventory management, and effective cost controls, which support continued margin expansion and earnings growth. Consistent demand for its exclusive collection and the expansion of new boutiques will further support revenue growth. Moreover, its continued investment in digital platforms should drive higher customer engagement and create additional opportunities for long-term growth.

Bank of Montreal

Bank of Montreal (TSX: BMO) is another stock worth holding for years for income and growth. The Canadian banking giant’s diversified revenue and growing earnings base have enabled it to deliver solid total returns.

The Canadian financial services giant has paid dividends for 197 consecutive years. Further, over the past 15 years, BMO has raised its dividend by about 5.7% annually.  Its diverse revenue sources, effective expense controls, and strong balance sheet continue to drive profitability and shareholder distributions. Importantly, the bank’s payout ratio remains sustainable.

BMO’s growth prospects also remain encouraging. Management is pursuing efficiency initiatives while continuing to invest in areas that can expand the business over the long term. Growth in loans and deposits, along with a well-capitalized balance sheet, could support further improvements in earnings and dividends. At the same time, investments in digital capabilities and artificial intelligence could enhance operational productivity and generate additional cost savings. Over time, these initiatives may strengthen profitability and provide further support for shareholder returns.

MDA Space

MDA Space (TSX: MDA) is another compelling stock to hold for decades. The company has a diversified presence across satellite systems, robotics, space operations, and geointelligence, allowing it to benefit from multiple structural growth trends within the industry. Increasing government and defence budgets, growing demand for satellite connectivity, and the expanding use of space-based data could all support MDA’s growth over the coming decades.

MDA’s longer-term prospects are further strengthened by its estimated $40-billion opportunity pipeline and its acquisitions of CLS and Blue Canyon Technologies. These additions could broaden the company’s capabilities, expand its addressable market, and contribute to higher recurring revenue and earnings over time.

As demand for satellite infrastructure, connectivity, and geospatial intelligence continues to rise, MDA Space is likely to gain a meaningful share of the space industry’s long-term expansion.

Dollarama

Dollarama (TSX: DOL) offers income, stability, and growth, making it a top stock to hold forever. The leading discount retailer benefits from a resilient business model that performs well in all economic conditions. Its broad assortment, fixed and low prices, and growing penetration of high-margin private-label offerings help attract a wide customer base while supporting consistent profitability.

Thanks to its defensive business model, Dollarama has consistently delivered steady revenue and earnings growth over the years. Strong financial performance has also enabled Dollarama to increase its dividend regularly since 2011, providing shareholders with a growing stream of income in addition to capital appreciation.

Looking ahead, Dollarama’s expanding store network, international opportunities, strengthening delivery partnerships, and efficient sourcing position it well to deliver strong growth.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aritzia. The Motley Fool recommends Dollarama and MDA Space. The Motley Fool has a disclosure policy.

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