Patient Investors: Why These Stocks Could Return Multiples Over Ten Years

When it comes to finding Canadian stocks that can deliver multiple returns over a ten-year period, there’s one thing investors should look for: recurring income. This can take different forms, but what you want is income that keeps flowing regardless of the markets. That’s why today we’re going to look at two top options for investors to consider. One has more than 100 years of experience, the other has only a few. Still, both are safe options on the TSX Today.

C.P

Canadian Pacific Kansas City (TSX: CP) could be one of the few Canadian stocks with the potential to quietly multiply in value over the next decade. It is a world-class transportation company at the heart of North America’s trade network. Thanks to its recent merger, it is now better positioned than ever to benefit from structural shifts in logistics, energy and supply chains.

What sets CP apart today is its unparalleled network. In 2023, the railroad completed its historic merger with Kansas City Southern, creating the only single-line railroad connecting Canada, the United States and Mexico. The system now covers approximately 32,000 kilometers of track, connecting key agricultural, manufacturing and energy hubs in three major economies.

Recent earnings figures reinforce that strength. In its latest quarterly results, CP reported revenue of $3.7 billion, up from the previous year. Earnings per share were $1.33, well above expectations. Moreover, CP is in excellent financial condition. The company has manageable debt levels and strong free cash flow, allowing it to invest heavily in capacity expansions while rewarding shareholders through dividends and buybacks. For investors willing to ride out the usual bumps, CP offers the kind of compound growth story that rarely comes along.

TOI

Topicus.com (TSXV:TOI) is one of the few small-cap Canadian tech companies that truly has the potential to multiply several times over over the next decade. For investors familiar with the parent company: Constellation softwareThe long-term scenario is clear: steady, disciplined growth through acquiring and scaling specialist software companies. Topicus is essentially the next generation of that same proven strategy, focused solely on Europe, a huge and still largely fragmented market ripe for

Topicus develops, acquires and operates vertical market software (VMS) companies. These are highly specialized software companies that serve specific sectors, such as education, healthcare, the financial sector or municipal services. Their software becomes deeply embedded in their customers’ operations, making their revenue recurring, predictable and sticky. This is evident from the profit figures: turnover increases by 20% year after year.

In terms of valuation, Topicus still looks modest compared to its potential. The stock trades at a reasonable 34 times forward earnings, given its growth rate and scalability. Investors are essentially buying a long series of small, add-on acquisitions that steadily increase profits year after year. Unlike growth stocks that rely on hype or external financing, Topicus generates the capital it uses to grow, meaning it doesn’t rely on cheap debt or investor enthusiasm. That makes it much more resilient if rates remain high or tech sentiment cools.

In short

For long-term investors, both of these Canadian stocks represent an opportunity for more growth over the next decade. These may not make headlines every quarter, but for patient investors willing to wait a decade, both could very well turn a modest initial investment into a multi-bagger. The kind of steady, exponential story that rewards belief and time, not timing.