2 TSX Giants to Buy and Hold for the Next 20 Years

When it comes to investments, TSX giants can be great buy-and-hold stocks for the next 20 years. These often have advantages that do not fade. It can be essential services, long-term customer relationships, or networks that would be wildly expensive to replace. That durability helps a stock survive recessions, rate shocks, and ugly headlines while still investing for the future.

In a Tax-Free Savings Account (TFSA), time does the heavy lifting, so the goal is not to chase the hottest story. The goal is to own businesses that keep earning and compounding. The best ones also have management teams that think in decades, not quarters, and reward patience with steady execution. So, let’s consider two on the TSX today.

CP

Canadian Pacific Kansas City (TSX:CP) is a classic “you can’t just build another one” business. It owns rail infrastructure that moves grain, autos, containers, and bulk commodities across huge distances, and rail is one of the cheapest ways to move heavy freight. Recent share performance can be choppy as the market treats railways like a read on the economy. When investors worry about a slowdown, the dividend stock can cool even if the long-term demand for freight barely changes.

In the most recent quarter, what tends to excite investors is the operating engine, not a flashy launch. People watch volume in key lanes, pricing discipline, and whether efficiency keeps improving as the network runs more smoothly. Service reliability matters too, as shippers pay for consistency when supply chains are messy. When CP shows it can protect profitability while still spending to maintain and improve the network, it supports the idea that the business is being managed for the long run.

Over 20 years, CP’s small efficiency gains can compound, and the network can grow more valuable as trade patterns evolve. It can also benefit from long-lived demand drivers like population growth and consumption, even if the path is bumpy. The risks are real, however. Labour disruptions, weather events, regulation, and a soft economy can all hit results in the short term. A long-term investor should focus on whether it is winning business, running safely, and investing at the right pace.

NWC

North West Company (TSX:NWC) is a TSX giant in a different way. It’s essential in the communities it serves, many of which are remote and hard to supply. Logistics are tough, competition is limited, and trust is earned over the years. Recent share performance can look steadier than many retailers because people still buy groceries, household staples, and pharmacy items in good times and bad. That defensive demand can make it easier to hold through market stress.

In its latest earnings, the key questions usually centre on same-store sales, gross margin, and what freight and labour costs are doing. Transport is a huge swing factor in remote markets, so inflation and fuel changes can squeeze profitability fast. Investors like to see NWC pass through price increases without crushing demand, while also managing inventory tightly to reduce waste and markdowns.

The long-term appeal is that NWC can keep earning in a niche where distribution and execution matter more than hype. If it continues investing in stores, supply chain capability, and community relationships, it can remain the default choice in many regions for a long time. But it is not risk-free. A jump in transportation costs, supply disruptions, currency moves in certain geographies, or changing regulations can pressure results. This is a dividend stock you own for steadiness, not fireworks.

Bottom line

As a pair, CP and NWC show what “TSX giant” means for a 20-year TFSA plan. That’s durable demand, real competitive edges, and cash flow that funds reinvestment and shareholder returns without stretching the balance sheet. Even now, here’s what $7,000 can bring in from each dividend stock.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTCP$102.1268$0.91$61.88Quarterly$6,944.16NWC$49.74140$1.64$229.60Quarterly$6,963.60

If you are considering either one, focus on what will still matter five and 10 years from now. For CP, watch service quality, pricing power, and whether capital spending is improving network performance. For NWC, watch margins, freight costs, and dividend coverage. Yet together, these look like a winning long-term pair.

The post 2 TSX Giants to Buy and Hold for the Next 20 Years appeared first on The Motley Fool Canada.

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More reading

• Long-Term Investing: Railway Stocks Are Struggling Now, but They Actually Have a Tonne of Potential
• 3 Top TSX Stocks I’d Buy for 2026 and Beyond
• 2 Recession-Resistant Dividend Stocks Perfect for Life-Long TFSA Income
• The Canadian Dividend Stock I’d Trust for the Next Decade
• 1 Top-Tier TSX Stock Down 18% to Buy and Hold Forever

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Pacific Kansas City and North West. The Motley Fool has a disclosure policy.