5 Canadian Stocks to Buy and Hold for the Next 5 Years

With all the volatility going on in the world, Canada remains a reasonably attractive place to invest. The great thing is that many Canadian stocks give you access to the broader world. If you are looking to build a diversified portfolio of quality Canadian stocks, here are five for the coming five years.

A top defence stock

My first pick for the coming five years is Calian Group (TSX:CGY). It is one of only a few publicly listed defence businesses in Canada. Over 50% of its revenues are from defence, but nearly 70% of its backlog is defence-related.

Calian provides crucial services to the military, including healthcare, training/simulation, satcom infrastructure/technology, and cybersecurity. Given that it is involved in so many areas, Calian is bound to see its share of funding as Canada massively increases its defence budget.

This stock has had a strong surge in 2026. However, at 20 times earnings, its valuation is not demanding, especially if it can put up double-digit annual growth in the years to come.

A top industrial stock

Exchange Income Corporation (TSX:EIF) plays off some similar themes as Calian. It has an aerospace defence component to its business. However, it is best known for its various airlines that cater to Canada’s northern regions.

Critical minerals, mining, and defence sovereignty are bringing a surge in investment in Northern Canada and the Arctic. This all could translate to higher volumes for Exchange. This theme also benefits its growing access solutions business.

After a 100% gain in the past year, its stock is a tad pricey. It’s a good pick to add on market dips. It pays a 2.7% dividend.

A steady waste business

Secure Waste Infrastructure (TSX:SES) is a defensive waste and water infrastructure player in Western Canada. In the regions it operates, Secure has a near monopoly. This protects against competition and sustains pricing power.

The company expects modest single-digit revenue growth in 2026. However, earnings per share growth is likely to outpace this due to Secure’s aggressive plan to continue buying back shares.

In the past two years, it has bought back over 28% of its own shares! Secure has a 2% yield and has regularly increased its dividend. Combine growth, buybacks, and dividends and investors should clip a nice +10% total annual return in the years to come.

A top energy/income pick

Topaz Energy (TSX:TPZ) is a great stock if you want dividends. It is an energy royalty business that also has an energy infrastructure component. It is in some of the top production growth regions in Western Canada.

Topaz gets to skim off a piece of any incremental barrel added on its lands. Its infrastructure business earns a steady income stream that helps support its dividend. This company earn very high free cash flow margins, which enable it to regularly increase its dividend. It yields 4.3% today.

A top software stock

Topicus.com (TSXV:TOI) is a little contrarian at present. It consolidates niche vertical market software companies in Europe and abroad. Worries about AI threats have drawn this stock down 24% in the past year.

It is trading at a very attractive valuation and a 6% free cash flow yield. This is a very high-quality, well-managed business. AI may be a threat, but it can also be an opportunity.

Software valuations have drastically declined, so it can be opportunistic to buy more. Likewise, AI can help improve efficiency in expanding its current software. This could be a great opportunity to add a high-end business at a fair price for the years and decades ahead.

The post 5 Canadian Stocks to Buy and Hold for the Next 5 Years appeared first on The Motley Fool Canada.

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More reading

• Got $5,000? 2 Top Growth Stocks to Buy That Could Double Your Money
• Turn a TFSA Into $300 in Monthly Tax-Free Income
• The Best Stocks to Invest $10,000 in Right Now
• The Smartest Growth Stock to Buy With $1,000 Right Now
• How to Structure a TFSA With $14,000 for Lifelong Monthly Income

Fool contributor Robin Brown has positions in Calian Group, Secure Waste Infrastructure Corp., and Topicus.com. The Motley Fool has positions in and recommends Topicus.com. The Motley Fool recommends Calian Group, Secure Waste Infrastructure Corp., and Topaz Energy. The Motley Fool has a disclosure policy.