Best Canadian Stocks to Buy for 2025

The TSX has been on a strong run this year, reflecting the resilience of the Canadian economy and the solid performance of key sectors such as energy, financials, and technology. Amid rising global uncertainty and fears of a potential market correction, many investors are reevaluating their portfolios. Focusing on value-oriented stocks can help mitigate risk while still offering substantial upside potential, especially in uncertain times.

For long-term investors, particularly those looking to take advantage of tax-free savings accounts (TFSAs), selecting the right stocks is crucial. Not only do TFSAs shield your profits and dividends from taxes, but they also allow you to grow your wealth faster. The Canadian stocks listed below can be ideal options for investors who are looking for dividends, stability, and long-term growth.

Here’s a list of the 10 best Canadian stocks to buy, heading into 2025.

1. Shopify

Shopify (TSX:SHOP), one of the most valuable companies on the Toronto Stock Exchange (TSX) with a market capitalization of $200 billion, remains a compelling stock for investors seeking long-term growth. As e-commerce continues to expand globally, Shopify is well-positioned to capitalize on this trend by providing the tools merchants need to scale their businesses.

The company’s revenue growth underscores its immense potential. Shopify’s revenue surged from $2.9 billion CAD in 2020 to over $8 billion CAD in the trailing 12 months, reflecting its ability to attract and retain businesses on its platform. The adoption of artificial intelligence is another driver of growth. Shopify leverages AI to help merchants optimize their sales through tools like personalized product recommendations and automated marketing insights, enhancing the value of its ecosystem.

With the e-commerce market projected to grow substantially in the years ahead, Shopify has ample runway for future expansion. Its focus on innovation and strategic investments in AI ensures it stays ahead of competitors in this fast-evolving industry.

Shopify is an ideal stock for growth-oriented investors who believe in the transformative potential of e-commerce and are looking for a market leader with a proven track record of robust revenue growth.

2. Toronto-Dominion Bank

Toronto-Dominion Bank (TSX:TD) offers investors a strong opportunity to benefit from economic recovery and long-term growth. As interest rates eventually decline and business activity picks up, TD is positioned to thrive due to its diversified operations and significant presence in both Canada and the U.S.

Warren Buffett’s affinity for investing in top-tier banks highlights their appeal as long-term growth vehicles. Banks like TD serve as vital cornerstones of the economy, directly benefiting from increased business activity and consumer spending during periods of economic expansion. TD’s scale, stability, and prudent risk management make it a standout in the sector.

Despite a challenging past year, TD Bank’s fundamentals remain robust. The stock’s 5.2% dividend yield provides a compelling reason for investors to stay patient, offering an income stream far above market averages. This high payout underscores the bank’s commitment to rewarding shareholders while reflecting its strong cash flow generation. At such a high yield, you would need to invest around $19,000 in the stock in order to collect $1,000 in annual dividends.

With its long-term growth trajectory supported by economic recovery trends, TD Bank is an attractive choice for dividend-focused investors and those seeking exposure to a resilient and well-managed financial institution poised to capitalize on improved market conditions.

3. Enbridge

Enbridge (TSX:ENB) remains one of the most reliable income stocks on the market, recently raising its dividend by 3%. This marks the company’s 30th consecutive year of dividend increases, a testament to its stability and shareholder-focused approach.

While sentiment around oil and gas stocks can be cautious, Enbridge stands apart due to its long-term contracts, which provide consistent cash flow regardless of commodity price volatility. The company operates critical energy infrastructure, including pipelines and storage, making it an indispensable player in North America’s energy supply chain.

The global demand for oil is expected to remain robust for the foreseeable future, as transitioning to alternative energy sources will take time. This ensures that Enbridge will continue to play a vital role in meeting energy needs while gradually incorporating renewable energy projects into its portfolio.

With a dividend yield of approximately 6%, Enbridge offers a compelling combination of income and growth potential. For investors seeking a high-yielding payout alongside reliable dividend growth, Enbridge is a strong option, particularly for those focused on stability and long-term returns in the energy sector.

4. Fortis

Fortis (TSX:FTS) is one of the most reliable dividend stocks on the Toronto Stock Exchange, making it an appealing option for conservative investors. The utility company recently increased its dividend for the 51st consecutive year, further solidifying its reputation as a dependable income generator. With a dividend yield of 4% and plans to grow the payout by 4% to 6% annually for at least the next five years, Fortis offers steady income with predictable growth.

A standout feature of Fortis is its low beta of approximately 0.2, indicating minimal volatility compared to the broader market. This makes the stock an excellent choice for risk-averse investors seeking stability during uncertain economic conditions.

Fortis benefits from a robust utility business, with regulated operations across North America providing consistent earnings. Its ability to generate strong cash flows ensures the sustainability of its dividend increases, and the company’s track record suggests the hikes could continue well beyond the current five-year growth plan.

For investors prioritizing safety, steady returns, and reliable income, Fortis is a top-tier utility stock that combines low risk with a proven ability to reward shareholders over the long term.

5. BCE

BCE (TSX:BCE), one of Canada’s leading telecom companies, offers a dividend yield exceeding 10%, making it an attractive option for income-focused investors. While the company may pause its dividend growth next year as it prioritizes its U.S. expansion through the acquisition of Ziply Fiber, the current payout remains compelling.

The stock has reached new lows this year, driven by tepid sentiment around its dividend outlook and the challenges of a rising interest rate environment. However, for contrarian investors, this presents an opportunity. BCE’s discounted price makes it an intriguing option for those looking to capitalize on potential recovery and future growth in the telecom sector.

The company’s long-term strategy to expand its presence in the U.S. reflects its ambition to tap into a broader market, potentially unlocking new growth avenues. While this transition could take years to materialize, BCE’s strong cash flow generation supports its high dividend payout, providing income stability as the growth plan unfolds.

For patient investors willing to adopt a buy-and-hold strategy, BCE offers a mix of robust income and overlooked growth potential. Even with limited dividend increases in the near term, its high yield and strategic initiatives make it a worthwhile addition to a long-term portfolio.

6. Dollarama

Dollarama (TSX:DOL) continues to solidify its position as one of the TSX’s premier growth stocks, driven by strategic expansion and consistent execution. The company plans to grow its store count from approximately 1,600 today to 2,200 by 2034, reflecting its ambition to capture an even larger share of the discount retail market in Canada.

The company has also been expanding its footprint internationally through its increased stake in Dollarcity, which operates in key Latin American markets. This move positions the company to tap into high-growth regions, further diversifying its revenue streams and bolstering its long-term growth potential.

In recent years, Dollarama’s performance has been exceptional, with its share price tripling over the past five years. This reflects the company’s ability to execute on its growth initiatives and deliver value to shareholders. With more expansion on the horizon, Dollarama shows no signs of slowing down, making it a compelling option for growth-focused investors.

For those seeking exposure to a high-performing retail stock with both domestic and international growth opportunities, Dollarama stands out as a solid long-term investment that can continue to reward patient investors in the years ahead.

7. Alimentation Couche-Tard

Alimentation Couche-Tard (TSX:ATD) is a convenience store powerhouse with a vast global footprint and a relentless focus on expansion. With operations spanning North America, Europe, and Asia, the company has become a dominant player in its industry, offering investors a unique combination of stability and growth.

Couche-Tard’s growth ambitions are evident in its recent bid to acquire 7-Eleven, which, if successful, would significantly expand its market presence and reinforce its position as a leader in the convenience store space. This aggressive approach to scaling its operations demonstrates the company’s commitment to long-term growth, even as it navigates a competitive global landscape.

Over the years, Couche-Tard has delivered impressive returns, driven by strategic acquisitions and organic growth. Its strong cash flow generation and efficient operations have enabled it to seize opportunities and maintain a robust financial position, ensuring continued investment in its growth pipeline.

For investors seeking a reliable growth stock on the TSX, Couche-Tard offers an attractive proposition. With a proven track record of execution, global dominance, and an insatiable appetite for expansion, the company remains well-positioned to deliver strong returns over the long term.

8. Air Canada

Air Canada (TSX:AC) stock remains well below its pre-pandemic highs, but for long-term investors, the stock offers compelling upside potential. As Canada’s leading airline, Air Canada is a market leader positioned to benefit from improving economic conditions and a resurgence in travel demand.

A significant factor that could bolster Air Canada’s profitability is the potential decline in oil prices. Fuel is one of the largest expenses for airlines, and lower oil costs would directly improve the company’s margins. Additionally, as interest rates come down, consumer purchasing power is likely to increase, driving a recovery in travel demand, particularly for discretionary travel.

Although the stock has struggled recently, Air Canada’s strong brand and market position ensure that it remains a key player in the aviation sector. For patient investors willing to weather short-term volatility, the company’s long-term prospects are promising.

With improving cost conditions and a gradual recovery in travel demand, Air Canada could reward those who see its potential as a cyclical growth opportunity. This stock is best suited for investors looking for a longer-term play on the recovery of the travel industry and the broader economy.

9. Canadian Tire

Canadian Tire (TSX:CTC.A) is a cornerstone of Canadian retail, offering stability and reliable income for investors. With a dividend yield of 4.5%, the stock provides a compelling option for those seeking consistent returns in a well-established brand.

The company has demonstrated its ability to adapt and grow, as seen through its acquisition of Party City in 2019. This strategic move expanded its product offerings and strengthened its position in the retail market. Canadian Tire’s diversified portfolio, including automotive, home goods, and sporting equipment, ensures it remains a dominant player in the industry with a loyal customer base.

Over the years, the stock has proven to be a stable investment, weathering economic fluctuations while maintaining its appeal as a dependable income generator. Its strong market presence and operational efficiency underline its ability to sustain dividends and navigate retail industry challenges effectively.

For investors prioritizing income and stability, Canadian Tire is an excellent choice. Its secure foothold in the retail sector, combined with a strong dividend yield, makes it a reliable long-term option for conservative investors seeking steady returns.

10. RioCan Real Estate Investment Trust

For investors seeking exposure to Canadian real estate, RioCan REIT (TSX:REI.UN) offers an attractive opportunity. With a near 6% dividend yield, RioCan provides steady income alongside the potential for long-term growth, making it a compelling addition to an income-focused portfolio. And what investors will love about this income stock is that it pays dividends every month, as opposed to every quarter, which is the norm for many dividend investments.

RioCan’s strength lies in its diversified portfolio, the result of over 30 years of strategic acquisitions and development. Its properties span Canada’s six largest markets, focusing on high-density, transit-oriented areas. This ensures the company benefits from consistent demand and enduring value in its real estate holdings.

The REIT’s portfolio is anchored by necessity-based tenants, including grocery stores, pharmacies, and personal services, providing stability even during economic downturns. Additionally, RioCan has expanded into well-located office and residential spaces, as well as vibrant mixed-use communities, creating a balanced mix of income-generating assets.

This diverse approach positions RioCan to adapt to shifting market conditions while continuing to deliver reliable returns to investors. For those looking to invest in Canadian real estate without the complexities of direct ownership, RioCan REIT combines strong fundamentals with a high yield, offering a reliable way to benefit from the country’s thriving urban centers.