As a Canadian investor, the Toronto Stock Exchange (TSX) offers multiple world-class companies sustainable competitive advantages, strong cash flows and proven management teams. Here are five TSX-listed stocks that I believe are well positioned to deliver solid returns over the next decade.
1. Royal Bank of Canada
Royal Bank of Canada (TSX:RY) is the cornerstone of many Canadian portfolios – and for good reason. As the nation’s largest bank, RBC benefits from scale, diversification and a dominant position in personal banking, asset management and capital markets.
Canadian banks operate in a highly regulated, oligopolistic environment that supports consistent profitability. RBC’s strong capital position and history of dividend growth make it an excellent long-term investment, especially for investors seeking income and stability.
That said, the stock hasn’t traded at this high price-to-earnings ratio since 2010. It would be wise for investors to wait for a pullback or a safer entry point.
2. Canadian Natural Resources
Canadian natural resources (TSX:CNQ) is one of the most resilient energy producers in North America. The country’s diversified asset base, long-lived reserves and disciplined capital allocation enable it to generate substantial free cash flow across commodity cycles.
CNQ has increasingly focused on reducing debt and improving shareholder returns, including dividend growth and share buybacks. Even in an energy landscape in transition, oil and gas will remain essential for years to come, and CNQ is well positioned to benefit.
The top energy stock has been trading sideways since 2024. It offers a good dividend yield of around 5.3%, making it attractive for income-oriented investors, especially since the stock’s price of $44.62 per share at the time of writing is around 15% off the consensus analyst price target.
3. Brookfield Infrastructure Partners
Brookfield Infrastructure Partners (TSX:BIP.US) owns a globally diversified portfolio of critical infrastructure assets, including utilities, pipelines, data centers and transportation networks. These assets generate stable, inflation-linked cash flows that support steady distribution growth.
Managed by Brookfieldone of the leading alternative asset managers in the world, BIP.UN offers investors exposure to real assets with defensive characteristics and long-term growth potential.
BIP is trading at a discount of around 14% and offers a cash distribution yield of around 5.0%, making it a potential buy at current levels as well.
4. Brookfield Asset Management
Brookfield Asset Management (TSX:BAM) is a global alternative investment powerhouse, with expertise in real estate, infrastructure, sustainable energy and private equity.
As institutional and private investors increasingly allocate capital to alternative assets, BAM is positioned to benefit from longer-term growth. Its asset-light model generates high margins and strong cash flows, making it an attractive compounder for patient investors, especially as it pays a growing dividend with a starting yield of around 3.2%.
5. Shopify
Shopify (TSX: STORE) is another growth component of this list. As a leading global ecommerce platform, Shopify enables millions of sellers to build, manage, and scale online businesses.
While the stock can be volatile, its long path to growth, growing ecosystem and focus on innovation make the company a strong candidate for long-term capital growth. A decade from now, Shopify has the potential to be a transformational winner.
Takeaway for investors
These five TSX stocks span financials, energy, infrastructure, asset management and technology, providing diversification across sectors and economic cycles. While no investment is without risk, owning high-quality businesses and holding onto them through market fluctuations remains one of the most effective strategies for long-term success.
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