Investing offers Canadians tremendous potential to meaningfully grow their hard-earned savings. The key to building serious long-term wealth, however, is not trying to time the market; it’s market time. It’s incredibly difficult to consistently try to flip stocks or chase the hottest trends. Instead, the best strategy is to buy high-quality Canadian stocks with decades of potential.
Long-term investing is the best strategy for investors because it helps limit short-term risks and rewards patience over speculation. Instead of buying stocks and hoping for short-term price movements in your favor, you buy companies that will grow naturally for years to come. That’s why the best stocks to buy are those high-quality companies that can steadily grow earnings, dividends, and cash flow over decades.
So how do you identify which Canadian stocks are worth buying and holding for the long term? The key is to find companies with sustainable competitive advantages, strong management and the ability to adapt as economies and industries evolve.
Additionally, these stocks often operate in sectors that are key to the economy, have a proven track record of execution, and offer investors a mix of growth, stability, and income potential.
So if you’re looking for the best Canadian stocks to buy now and hold for the next twenty years, here are three names to consider today.
One of the best Canadian stocks to buy and hold for decades
If you’re looking for high-quality Canadian stocks, you can be confident about holding them for the long term. Brookfield Corporation (TSX:BN) is one of the best to consider.
Brookfield is a global asset management powerhouse. It has more than $900 billion in assets under management across sectors including real estate, infrastructure, renewable energy and private equity.
However, it’s not just the diversified portfolio and global reach that make Brookfield one of the best Canadian stocks to buy. Much of Brookfield’s success comes from Brookfield’s ability to consistently identify undervalued assets, unlock their potential and generate long-term cash flow through disciplined investing.
Furthermore, the entire business model is built on compounding, as Brookfield earns management fees from the assets under management, invests alongside clients, and continually recycles profits into new opportunities with higher returns.
So if you’re looking for top Canadian stocks to buy and hold for the next twenty years, Brookfield is easily one of the best to consider.
A leading Canadian agricultural company
Besides Brookfield, there’s another huge Canadian company with essential businesses and years of long-term growth potential Nutrients (TSX:NTR), a highly reliable agricultural stock.
Agriculture may not sound as exciting to investors as technology or other growth stocks. In the long run, however, it is one of the most reliable and necessary industries in the world. And because Nutrien is the largest fertilizer producer in the world, it has a dominant position in a sector that will only continue to grow.
Plus, it’s not just Nutrien’s size and scale that makes it one of the best Canadian stocks to buy and hold for years. It is also its vertical integration.
So while Nutrien produces nitrogen, potash and phosphate fertilizers, it also operates a global retail network that sells directly to farmers.
Furthermore, not only does Nutrien have decades of growth potential ahead of it, but it also trades at an enterprise value to earnings before interest, tax, depreciation and amortization (EV/EBITDA) ratio of just 6.4 times, below the historical average of 7.6 times.
One of the best Canadian REITs you can buy right now
The real estate sector is an excellent place to find high-quality Canadian stocks to buy for the long term, and one of the best to consider now is Canadian Apartment Properties REIT (TSX:CAR.UN).
CAPREIT, as it is known, is the largest residential REIT in Canada, offering investors exposure to a portfolio of thousands of rental units across the country. Therefore, it is a stock that offers both growth and income potential.
In fact, it currently offers not only one dividend yield of 3.9%, above the five-year average of 3.6%, but it also trades at a forward price-to-funds-of-operations ratio of 15 times, below the five-year average of 19.7 times, making it one of the best Canadian stocks to buy today.
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