5 Canadian Stocks I Don’t Think I’ll Ever Sell

These five Canadian stocks are some of the best businesses you can own and ones I don’t think I’ll ever need to sell.

Long-term investing is crucial for success. It’s much easier to pick businesses that can perform over the long run than it is to try and pick securities that will perform in the short run. Therefore, any time you’re looking at buying Canadian stocks, it’s crucial to keep a long-term mindset.

The best businesses to buy are companies you can have confidence owning for decades and that you don’t have to ever sell.

These businesses are constantly expanding their operations and growing both their earnings and their cash flow. So, for many, which are dividend stocks, that means constant and consistent dividend increases year after year.

And periodically, as your portfolio grows in size, you’ll want to add more exposure to each of your top holdings. Plus, when you plan to hold stocks forever, you can be highly picky about when you decide to invest more.

And right now is one of the best opportunities, so if you’re looking for some of the best stocks to buy now, here are five of my top holdings that I don’t think I’ll ever need or want to sell.

Two top defensive Canadian stocks to buy and hold for years

In this environment, it’s crucial to have confidence in your portfolio and therefore, owning highly defensive and reliable Canadian stocks is so important.

However, even besides this environment owning high-quality and defensive stocks is ideal for the long haul. That’s why two of my top holdings are Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP) and North West Company (TSX:NWC).

Brookfield is an incredible stock that owns infrastructure assets all over the world. These are highly defensive, can benefit from inflation, and offer plenty of opportunity for growth.

Plus, Brookfield is also constantly recycling capital, which is why it’s also an incredible growth stock.

Meanwhile, North West owns grocery stores in supermarkets, mostly in remote regions in northern Canada and Alaska. This is a highly defensive business, and because North West is vertically integrated and controls its costs so well, it’s one of the top consumer defensive stocks that Canadian investors can buy.

Plus, in addition to the defence these stocks offer, they are also both high-quality dividend-growth stocks. Therefore, I don’t think I’ll ever sell these two stocks, and if they’re ever trading undervalued, I’ll certainly look at buying more.

A top energy stock

There’s no question that energy stocks have been some of the hottest investments this year. However, even if the energy industry was to cycle and these stocks became ultra-cheap, I’d almost certainly continue to own Freehold Royalties (TSX:FRU) for years to come.

Freehold is an incredible stock because it buys land where other energy companies produce oil and gas and then pay it a royalty. This is a lower-risk method of investing in energy, but one that still benefits when prices for energy rise.

Plus, because Freehold earns so much free cash flow and has no capital expenditures, it can use excess cash flow to continue acquiring more land, which, as we’ve seen recently, allows Freehold to expand rapidly across the United States.

Therefore, not only is Freehold one of the best Canadian stocks to buy now due to its 7.7% dividend yield, but it’s also an energy stock that you can plan to own for decades.

Two of the best growth stocks in Canada

Building a portfolio is all about finding the right balance of stocks for your financial situation. So, for me, it’s crucial that in addition to highly defensive stocks, I also own a ton of high-potential growth stocks.

That’s why goeasy (TSX:GSY) and Aritzia (TSX:ATZ) are two of my top holdings. And right now, many growth stocks, including these two, are trading ultra-cheap, making now a great time to take a position.

goeasy is a specialty finance stock that’s been growing impressively as of late. In just the last three years, it’s grown its earnings by 164%.

Aritzia, however, is a vertically integrated women’s fashion retailer. The company has long been popular in Canada, but now it’s expanding rapidly across the United States, offering tons of long-term growth potential.

Therefore, while these two top Canadian growth stocks continue to perform well, I will continue to add to my positions, especially while they’re undervalued.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa has positions in ARITZIA INC, Brookfield Infra Partners LP Units, FREEHOLD ROYALTIES LTD., THE NORTH WEST COMPANY INC, and goeasy Ltd. The Motley Fool recommends ARITZIA INC, Brookfield Infra Partners LP Units, FREEHOLD ROYALTIES LTD., and THE NORTH WEST COMPANY INC.

More on Stocks for Beginners

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Use Your TFSA to Earn Ultimate Passive Income

If you have a TFSA, then you have the key to creating ultimate passive income. All you need is a…

Read more »

Hourglass and stock price chart
Dividend Stocks

Goeasy Stock: Is It Heading for a 52-Week High?

Goeasy stock has been edging higher, especially after another record-setting earnings report. So are 52-week highs in sight?

Read more »

bulb idea thinking
Stocks for Beginners

2 Stocks That Could Help You Get Richer in 2025

It’s time to prepare for 2025 before you leave for the holidays. Here are two stocks that could make you richer…

Read more »

Middle aged man drinks coffee
Stocks for Beginners

The Best Investment Hack Every Investor Should Know

An investment hack doesn't have to be risky, tricky, or any of those scary ideas. In fact, it can be…

Read more »

Investor reading the newspaper
Stocks for Beginners

A Better Post-Earnings Buy: Restaurant Brands or Lightspeed?

These two retail stocks have come out with earnings, but which is the clear long-term winner for investors?

Read more »

a person watches a downward arrow crash through the floor
Dividend Stocks

3 Everyday CRA Red Flags Investors Should Really Know

The CRA can be a blessing and a curse, but if you make sure to follow the rules and not…

Read more »

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Canadian National Railway Stock is on Sale: Why Now is the Time to Invest

CNR stock has long been a top stock, with a solid position in a railway duopoly. But right now is…

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

This 7.9% Dividend Stock Pays Cash Every Month

We all want dividends, and having them come out monthly is ideal! But this might be a strong choice for…

Read more »