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

Easing tensions in the Middle East and lower oil prices have improved investor sentiment, driving a strong rebound in Canadian equities over the past couple of months. The benchmark S&P/TSX Composite Index has climbed more than 13% from its March lows. Despite this rally, several quality Canadian stocks continue to offer compelling long-term upside. With that in mind, here are five Canadian stocks that I believe are attractive buys for investors with a five-year investment horizon.

Dollarama

Dollarama (TSX:DOL) is a leading discount retailer that offers a wide range of everyday consumer products at compelling prices through its efficient direct sourcing model and streamlined supply chain. Its value-focused business model enables the company to generate resilient sales and healthy cash flows across varying economic conditions.

Looking ahead, Dollarama has a clear runway for growth. The retailer plans to expand its Canadian store network from 1,719 to 2,200 locations, while its Australian business could grow from 410 to 700 stores. In addition, Dollarama should benefit from the continued expansion of Dollarcity, in which it holds a 60.1% stake, as the Latin American discount retailer aims to increase its store count from 752 to 1,100 by the end of 2031. Backed by its resilient business model and multiple growth drivers, I believe Dollarama remains an excellent buy for long-term investors.

Savaria

Second on my list is Savaria (TSX:SIS), a global provider of accessibility and mobility solutions supported by an extensive manufacturing footprint and a well-established distribution network. As populations age across many regions, demand for the company’s products could remain strong, creating a favourable long-term growth backdrop.

To capitalize on this opportunity, Savaria is investing in the development of innovative products, expanding its manufacturing capacity, enhancing operational efficiency, and pursuing strategic acquisitions to strengthen its market position. Management expects revenue to reach $1.6 billion by 2030, representing an annualized growth rate of 12%, while maintaining an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin of more than 20%. Coupled with its 1.9% monthly dividend yield and a reasonable forward price-to-earnings multiple of 21.3, Savaria appears to be an attractive long-term investment.

Celestica

Another Canadian stock I am bullish on is Celestica (TSX:CLS). The electronic manufacturing services (EMS) provider is well-positioned to benefit from the accelerating adoption of AI (artificial intelligence) across enterprises, governments, and consumers, which is driving demand for greater computing power. To meet this demand, hyperscalers continue to invest heavily in AI (Artificial Intelligence) infrastructure and data centres, boosting demand for Celestica’s advanced networking and hardware solutions. This favourable trend should create significant long-term growth opportunities for the company.

To capitalize on this favourable trend, Celestica continues to focus on product innovation and expand its manufacturing capabilities, including plans to develop a new production facility in Fort Worth, Texas. These initiatives should strengthen its competitive position, increase production capacity, and support sustained revenue and earnings growth. Given its strong execution and exposure to one of the fastest-growing technology markets, I believe Celestica remains well-positioned to deliver attractive shareholder returns over the next five years.

Hydro One

Hydro One (TSX:H) is a pure-play electricity transmission and distribution company with no exposure to power generation. Its fully regulated asset base provides stable and predictable earnings, making its financial performance largely insulated from commodity price fluctuations and broader market volatility. This dependable business model, combined with steady rate base expansion, has supported consistent earnings growth and attractive shareholder returns.

Looking ahead, rising electricity demand, driven by economic growth, transportation electrification, and the rapid expansion of AI-ready data centres, should create favourable long-term growth opportunities. To meet this demand, Hydro One is expanding its network, with 15 transmission projects currently in various stages of development and construction. These investments should drive continued growth in its rate base, earnings, and cash flows, supporting further share price appreciation. Investors can also benefit from the company’s reliable quarterly dividends, which currently yield 2.4%.

Enbridge

My final pick is Enbridge (TSX:ENB), a leading energy infrastructure company that has increased its dividend for 31 consecutive years and currently offers an attractive forward yield of 5.1%. Backed by long-term take-or-pay contracts and regulated assets, Enbridge generates stable earnings and dependable cash flows, enabling it to deliver consistent shareholder returns and steady dividend growth.

Looking ahead, the company is well-positioned to benefit from rising oil and natural gas production across North America. To meet growing demand for its infrastructure, Enbridge plans to invest $10–$11 billion annually to expand its asset base. Supported by these investments, management expects earnings per share and distributable cash flow per share to grow at an annualized rate of 5% through 2030, providing a solid foundation for continued dividend growth and long-term shareholder returns.

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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Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Celestica, Dollarama, and Enbridge. The Motley Fool has a disclosure policy.