Buying high-quality Canadian stocks can help build wealth in the long run. The key is to focus on businesses with strong fundamentals, sustainable and profitable growth, and the ability to withstand changing market conditions. Diversification is equally important, as it reduces reliance on any single company or sector.
With these factors in mind, here are five Canadian stocks I’d consider buying right now. The group offers a mix of growth, income, and stability, while also providing exposure to structural growth opportunities such as space technology and digitalization.
Canadian stock #1: Hydro One
Hydro One (TSX:H) is one of the top stocks to buy and hold for stability, income, and growth. As a regulated electricity transmission and distribution utility, it remains immune to the risks associated with power generation and generates predictable cash flow.
Since 2016, Hydro One has raised its dividend at a mid- to high-single-digit annual rate, while its stock has delivered solid capital gains. Management expects its rate base to grow about 6% annually through 2027, supporting future earnings and dividend growth.
With rising electricity demand, grid-modernization investments, a strong balance sheet, and an internally funded capital program, Hydro One is well positioned to deliver solid total returns.
Canadian stock #2: Aritzia
Aritzia (TSX:ATZ) is an attractive Canadian stock for generating solid capital gains over the long term. The luxury fashion retailer has delivered impressive growth, with revenue and earnings both increasing at solid double-digit rates. Strong customer traffic at its stores and online, combined with an expanding network of boutiques, continues to support the company’s performance.
This growth momentum could continue. Aritzia is positioned to benefit from new store openings, more full-price sales, continued e-commerce growth, better inventory management, and tighter cost controls. These factors could help the company expand its profit margins and grow earnings, potentially supporting further gains in its share price.
Canadian stock #3: MDA Space
MDA Space (TSX:MDA) is a compelling stock to capitalize on the growing space economy. Its businesses span Satellite Systems, Robotics & Space Operations, and Geointelligence, giving it exposure to several growth markets.
Rising government and defence spending, demand for satellite connectivity, and greater use of space-based data could support long-term growth. The company ended Q2 with a strong backlog, providing strong revenue visibility. Moreover, its large opportunity pipeline augurs well for future growth.
Recent acquisitions, including CLS and Blue Canyon Technologies, further expand MDA Space’s AI, Earth observation, satellite IoT, and defence capabilities while strengthening its recurring revenue and cash generation. Overall, this space technology company is well-positioned to deliver solid growth.
Canadian stock #4: Loblaw
Loblaw (TSX:L) could be another valuable addition for stability and growth. Canada’s leading food and pharmacy retailer benefits from its defensive business, and ability to drive traffic and generate profitable growth.
Looking ahead, it is expanding its store network and increasing its presence in discount formats, which will support its top-line growth. In addition, its attractive loyalty rewards program and growing penetration of private-label products support growth.
Further, Loblaw’s digital business also presents an attractive growth avenue, with rising e-commerce sales. In addition, Loblaw’s focus on driving efficiency and divesting non-core businesses will boost earnings and support its stock price.
Canadian stock #5: Shopify
Shopify (TSX:SHOP) is a compelling long-term Canadian stock. Despite tougher year-over-year comparisons and concerns about competition from AI companies, the e-commerce leader continues to deliver strong financial results, which supports its bull case.
The Canadian technology giant is well positioned to benefit from the ongoing digitalization and shift toward digital and omnichannel commerce. Its Gross Merchandise Volume (GMV) continues to grow across merchants, regions, and sales channels.
Shopify is also expanding beyond online retail. Its offline and B2B GMV are growing at a solid pace. Meanwhile, its payments business is growing rapidly, with Shop Pay gaining momentum.
With rising platform adoption, strong offline and B2B growth, expanding payment volumes, and continued AI investment, Shopify appears well positioned to benefit from the long-term growth of omnichannel commerce and deliver sustainable value to shareholders.