1 Canadian Blue-Chip Stock I’d Buy and Hold for Years

Blue-chip stocks don’t need to be flashy to build wealth. In fact, that’s usually the point. The best ones tend to own assets people still need in rough markets, good markets, and everything in between. They generate cash, reward shareholders, and keep enough scale to survive messy cycles. Investors still have to watch valuation and industry risk, of course. But when a blue-chip stock combines a strong balance sheet, a clear business model, and years of demand ahead, it can become the kind of holding you don’t need to babysit.

SU

Suncor Energy (TSX:SU) looks like one of those Canadian names. The company sits near the centre of Canada’s energy system, with operations across oil sands production, offshore production, refining, retail fuel, and trading. That integrated model gives it more ways to make money than a pure oil producer. When crude prices rise, its upstream business can shine. When refining margins improve, its downstream side can help smooth out the ride. Add in Petro-Canada’s retail network, and Suncor stock touches the energy chain from the ground to the gas pump.

The past year also gave investors a clearer reason to pay attention. Suncor stock delivered record production in 2025 and continued to sharpen its operations under chief executive officer Rich Kruger. It also laid out a longer-term shift toward more in-situ oil sands production, which can lower costs and support future cash flow as older mining assets age. The company wants to add about 100,000 barrels of oil equivalent per day (boe/d) of upstream production by 2028. That’s not small. It suggests Suncor stock still sees room to grow, even as the broader energy sector keeps talking about discipline.

Into earnings

The earnings picture has looked strong as well. In the first quarter of 2026, Suncor stock reported adjusted earnings of $1.93 per share, beating analyst expectations. Upstream production reached 875,000 boe/d, while refinery throughput came in at 498,000 boe/d with 97% utilization. Those numbers matter for a blue-chip case as they show Suncor stock didn’t just benefit from one lucky oil-price move, it ran its assets hard and well.

For the full year 2025, Suncor stock also showed why investors like its cash machine. The company reached record upstream production of about 860,000 boe/d and returned $5.8 billion to shareholders through dividends and buybacks. The dividend now sits at $0.60 per share quarterly, giving the stock a yield near 2.7% at writing. The valuation still looks reasonable for a large Canadian energy name, with shares recently trading around 17 times earnings. That’s not a bargain-bin price, but it doesn’t look stretched given the cash flow, scale, and shareholder returns.

Future focus

Looking ahead, Suncor stock fits because Canada’s energy strength isn’t going away overnight. Oil demand remains resilient, Canada has world-class resources, and the expanded Trans Mountain pipeline gives western Canadian barrels better access to global markets. Suncor stock also benefits from its refining business, which can capture value even when crude prices wobble. That mix gives it more balance than many investors expect from an energy stock.

Still, this isn’t a risk-free hold. Oil prices can fall quickly. Large oil sands projects need major capital. Environmental pressure and policy changes can affect long-term sentiment. Suncor stock also needs to execute its growth plans without letting costs creep higher. Yet right now, Suncor stock offers scale, income, buybacks, and long-life assets without asking investors to bet on a tiny company with a single project.

Bottom line

For investors looking for one Canadian blue-chip stock to buy and hold for years, Suncor stock deserves a serious look. It won’t always move in a straight line, and energy stocks rarely do. But its integrated business, improving operations, dividend growth, and future production plans make it a sturdy long-term pick. Plus, it offers an income stream through its dividend, which can be solid even with a $7,000 investment.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTSU$85.7381$2.40$194.40Quarterly$6,944.13

Sometimes the best blue-chip stocks aren’t the quietest ones. They’re the ones with enough cash, grit, and scale to keep rewarding investors through the business cycle.

The post 1 Canadian Blue-Chip Stock I’d Buy and Hold for Years appeared first on The Motley Fool Canada.

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More reading

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.