2 Powerful Canadian Stocks I’d Hold Confidently for the Next 5 Years

If you think every investment needs constant monitoring, you’re wrong. Investments in some well-established Canadian stocks could actually allow investors to hold them with confidence for years, even through market ups and downs. These are typically businesses with strong fundamentals, reliable earnings, and the ability to grow steadily over time.

In this article, I’ll highlight two powerful Canadian stocks I won’t hesitate to hold for the next five years.

Royal Bank of Canada stock

The largest Canadian bank, Royal Bank of Canada (TSX:RY), is one of the most diversified financial institutions in the country. It operates across personal and commercial banking, wealth management, capital markets, and insurance, with a strong presence in Canada, the U.S., and many other global markets. After witnessing a surge of nearly 39% over the last year, RY stock now trades at $227.34 per share with a market cap of $317.8 billion. Currently, it also offers a quarterly dividend with a yield of 2.9%, which can give you steady income.

Royal Bank’s recent performance is mainly a result of the underlying strength in its financials. In the first quarter (ended in January) of its fiscal year 2026, the banking giant’s net income jumped 13% year-over-year (YoY) to $5.8 billion. Meanwhile, its diluted earnings per share (EPS) rose 14% from a year ago to $4.03, while adjusted net income reached $5.9 billion, up 12%. Similarly, its return on equity (ROE) stood at nearly 18%, improving by 80 basis points YoY.

The bank’s growth in the latest quarter was broad-based across segments. Its personal banking segment’s net income rose 17% YoY, commercial banking rose 11%, and wealth management surged 32%. In addition, its capital market segment also delivered positive growth, with net income rising 3% YoY.

Moreover, RBC continues to invest in digital capabilities and expand its wealth management and capital markets businesses, which should support its long-term growth.

Pembina Pipeline stock

Pembina Pipeline (TSX:PPL) is another top Canadian stock I can buy and hold confidently. This Calgary-based energy infrastructure firm mainly focuses on transportation and midstream services. Its assets include pipelines, gas processing facilities, and export terminals, supported by long-term contracts that provide stable cash flows.

After climbing nearly 6% over the last year, PPL stock currently trades at $62.07 per share with a market cap of $36.1 billion. It also offers a juicy dividend yield of 4.6%, with quarterly payouts.

For the full year 2025, Pembina posted earnings of $1.7 billion and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $4.3 billion. It also achieved record volumes of 3.7 million barrels of oil equivalent per day, up 3% from 2024.

The company continues to invest in growth as it’s allocating $425 million toward pipeline expansions to support increased production in Western Canada. Progress is also underway on its Cedar liquefied natural gas project, with strong commercial backing from partners like PETRONAS and Ovintiv.

Overall, Pembina’s focus on long-term contracts, disciplined capital allocation, and infrastructure expansion supports its strong long-term growth outlook.

The post 2 Powerful Canadian Stocks I’d Hold Confidently for the Next 5 Years appeared first on The Motley Fool Canada.

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More reading

• 3 Canadian Dividend Stocks Perfect for Retirees
• 5 TSX Dividend Stocks Worth HoldingThrough the Next 10 Years
• 3 Blue-Chip Dividend Stocks for Canadian Investors
• 5 Canadian Stocks Built for Buy-and-Hold Investors
• How to Convert $25,000 in TFSA Savings Into Reliable Cash Flow

Fool contributor Jitendra Parashar has positions in Pembina Pipeline. The Motley Fool recommends Pembina Pipeline. The Motley Fool has a disclosure policy.