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7 Best Stocks to Buy in Canada for Long-Term Growth

Irfan Ameer
Irfan Ameer
9 Min Read

When thinking about long-term growth, it’s essential to know where to put your money. If you’re wondering, “What are the best stocks to buy in Canada for long-term growth?” you’re in the right place. 

Contents
What Are the Best Stocks to Buy in Canada for Long-Term Growth?1. Dollarama (TSX): Canada’s Leading Dollar Store2. Alimentation Couche-Tard (TSX): A Global Giant3. Shopify (TSX): Canada’s Tech Superstar4. Royal Bank of Canada (TSX): A Financial Powerhouse5. Canadian National Railway (TSX): Moving Goods, Moving Growth6. Brookfield Asset Management (TSX.A): A Leader in Global InvestmentsTelus (TSX): A Leader in Smart Technologies and Sustainable InnovationWhere Should You Invest?

The stock market can be confusing, but with the right information and a little patience, you can make smart investments. 

Whether you’re a first-time investor or someone with more experience, choosing the right stocks in Canada is crucial for building wealth over time. In this article, we’ll break down seven Canadian stocks you should consider for long-term growth.

What Are the Best Stocks to Buy in Canada for Long-Term Growth?

When it comes to finding the best stocks for long-term growth, you want companies that have a solid track record. 

These companies should not only perform well now but continue to grow over the years. In Canada, certain sectors, like retail, technology, and financial services, offer great opportunities for investors. The key is to find companies that will be around for the long haul and have the ability to expand their operations.

So, what makes a stock worth buying? It’s not just about how much money the company is making today. Instead, you want to look at its potential for the future. 

Are they entering new markets? Do they have a competitive advantage? These are all important questions to consider. With that said, let’s dive into seven stocks that are great picks for long-term growth in Canada.

1. Dollarama (TSX): Canada’s Leading Dollar Store

Dollarama is a well-known name in Canada, but it’s more than just a place to pick up cheap goods. As the largest dollar store chain in the country, Dollarama has over 1,500 stores in Canada and is expanding into Latin America. 

With over 500 stores already in places like Colombia and Peru, the company is set to open even more in the next few years.

This steady growth, both in Canada and internationally, makes Dollarama a strong choice for long-term investors. The company has been consistently increasing its earnings and is expected to continue expanding its reach. 

Dollar stores tend to do well even during tough economic times, as people look for cheaper alternatives when money is tight. With Dollarama’s business model and growth plans, it’s a stock to watch.

2. Alimentation Couche-Tard (TSX): A Global Giant

If you’re not familiar with Alimentation Couche-Tard, you should be. This company operates convenience stores and gas stations all over the world. It has grown through acquisitions and shows no signs of slowing down. 

Recently, Couche-Tard tried to buy the company behind 7-Eleven, which would have been a huge deal. Even though the offer didn’t go through, it shows how aggressive the company is in its growth strategy.

Couche-Tard isn’t just about convenience stores. The company is also investing heavily in electric vehicle (EV) charging stations, especially in Europe and North America. 

With the rise of EVs, this is a smart move that positions Couche-Tard for future success. This stock is a great option for those looking for a company with solid international growth potential.

3. Shopify (TSX): Canada’s Tech Superstar

When people think of e-commerce, Shopify is often the first company that comes to mind. Based in Canada, Shopify helps businesses set up online stores and manage their sales. The company has grown rapidly over the years, and its platform is used by companies of all sizes.

What makes Shopify a good pick for long-term growth? For one, e-commerce is only going to get bigger. More and more people are shopping online, and Shopify makes it easy for businesses to reach these customers. 

The company also offers a wide range of services that keep businesses coming back, which leads to recurring revenue. If you’re looking for a tech stock with strong growth potential, Shopify should be on your list.

4. Royal Bank of Canada (TSX): A Financial Powerhouse

The Royal Bank of Canada (RBC) is one of the largest and most stable banks in Canada. For long-term investors, stability is key, and RBC has a long history of delivering solid earnings. The bank also offers a steady dividend, which is a nice bonus for those looking for income as well as growth.

RBC is also investing in digital transformation, which is crucial in today’s banking world. By focusing on AI and machine learning, the bank is working to improve customer service and streamline operations. 

This commitment to innovation will help RBC stay competitive in the future, making it a solid pick for long-term growth.

5. Canadian National Railway (TSX): Moving Goods, Moving Growth

Canadian National Railway (CNR) is a critical player in North America’s transportation network. The company moves goods across Canada and the U.S., which means it benefits from both local and international trade. 

Railways are a capital-intensive industry, meaning there are high barriers to entry. This makes it tough for competitors to challenge CNR’s market share.

CNR has also been investing in technology to make its operations more efficient. From automated trains to advanced logistics systems, the company is staying ahead of the curve. For investors looking for the best stocks to buy in Canada, Canadian National Railway is a strong choice.

6. Brookfield Asset Management (TSX.A): A Leader in Global Investments

Brookfield Asset Management is a giant in the world of infrastructure and renewable energy investments. The company manages assets in real estate, renewable power, and infrastructure, making it well-diversified. Brookfield’s focus on renewable energy is especially exciting, as this sector is expected to see significant growth in the coming years.

The company is known for buying undervalued assets and turning them into profitable investments. For long-term investors, Brookfield offers exposure to some of the fastest-growing industries in the world. If you’re looking for a stock that combines growth with stability, Brookfield is a great option.

Telus (TSX): A Leader in Smart Technologies and Sustainable Innovation

Telus has established itself as more than just a telecom giant in Canada. In addition to expanding into health tech with Telus Health, the company is also making waves in smart city technologies and IoT (Internet of Things) solutions. Telus is leading efforts in the development of connected solutions for urban centers, including smart traffic systems, energy management, and public safety enhancements.

Furthermore, Telus has committed to sustainability, aiming to achieve net-zero emissions by 2050. Its initiatives in green energy, sustainable business practices, and environmental stewardship are gaining recognition and align with the growing demand for socially responsible investments. With its diverse innovation strategy in 5G, IoT, health tech, and sustainability, Telus offers a compelling investment opportunity for those seeking a balance between stability and forward-thinking growth.

Where Should You Invest?

If you’re looking for the best stocks to buy in Canada for long-term growth, you can’t go wrong with the seven we’ve discussed here: Dollarama, Couche-Tard, Shopify, RBC, CNR, Brookfield, and Telus. These companies have strong business models, solid growth strategies, and are well-positioned for the future.

Before you invest, be sure to do your research. Investing in stocks is a long-term game, and the more you know, the better your chances of success. So take the time to understand these companies, and you’ll be well on your way to building a strong portfolio.

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