A buy-and-hold stock needs more than a good story. It needs a business that can keep growing even when markets get noisy, rates stay awkward, or the economy cools off for a stretch. That usually means strong cash flow, a clear competitive edge, and management that keeps executing. For 2026, I’d also want a mix of industries, because no one theme stays hot forever. The four stocks below look built to keep working through different parts of the cycle.
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AC
Air Canada (TSX:AC) looks relevant now because travel demand hasn’t rolled over, and the airline keeps leaning into premium and international routes. It’s Canada’s largest airline, so it gets scale that smaller rivals can’t match. Over the last year, it kept expanding its network, including more Europe and Latin America flying, while management pointed to strong booking momentum heading into 2026.
The numbers look better than many investors probably expected. Air Canada stock posted $22.4 billion in 2025 revenue, $918 million in operating income, and $3.1 billion in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA). It also guided for $3.35 billion to $3.75 billion in adjusted EBITDA for 2026. At roughly 10 times earnings with a market cap near $5.8 billion at writing, Air Canada stock still doesn’t look expensive. Debt and economic shocks remain real risks, but for a patient investor, this still looks like a recovery story with room left.
MDA
MDA Space (TSX:MDA) gives investors a rare Canadian way to tap into defence, satellite demand, and the broader space buildout. The company builds robotics, satellite systems, and geo-intelligence tools, and over the last year it kept landing meaningful contracts, including a $32 million Department of National Defence award tied to space surveillance.
In its latest earnings, MDA reported record 2025 revenue of $1.6 billion, up 51%, while adjusted EBITDA climbed 49% to $324 million. Backlog ended the year at $4 billion, and management’s 2026 revenue outlook sits at $1.7 billion to $1.9 billion. The stock isn’t cheap at about 50 times trailing earnings, so that’s the obvious risk. Still, when a company has that kind of backlog and a $40 billion pipeline, the premium starts to make more sense.
STN
Stantec (TSX:STN) is a design and engineering firm with exposure to water, transit, health care, energy transition, and other projects that don’t disappear overnight, offering key resilience. Over the last year, the company kept showing up across major infrastructure work, including 62 projects in ReNew Canada’s 2026 Top100 report.
In 2025, net revenue rose 10.7% to $6.5 billion, adjusted EBITDA reached $1.1 billion, and adjusted earnings per share (EPS) increased 19.9% to $5.30. Backlog hit a record $8.6 billion, and management said 2026 started strongly. At around 29 times earnings, the stock isn’t bargain-bin cheap, but quality rarely is.
CPX
Capital Power (TSX:CPX) gives investors cash flow, electricity demand, and a useful tailwind from data centres and grid expansion. Over the last year, it made a huge move by buying two natural gas assets in the PJM market for about US$2.2 billion, and it also struck a 10-plus-year Alberta electricity supply deal with a data centre developer.
Its 2025 results backed that growth push. Capital Power generated $1.6 billion in adjusted EBITDA and $1.1 billion in adjusted funds from operations (AFFO), while AFFO per share rose to $7.08. The dividend keeps growing too, and the trailing yield sits near 4%. The trailing price-to-earnings (P/E) looks lofty at roughly 77, but that figure gets distorted by accounting noise, so cash flow matters more here. Integration risk and power-price swings are worth watching, but this still looks like a solid hold through 2026.
Bottom line
If you want four Canadian stocks you can tuck away and not fuss over every week, this mix makes a lot of sense. Air Canada stock brings recovery upside, MDA brings growth, Stantec brings stability, and Capital Power brings durable cash flow. Put together, that’s the kind of balanced group that could keep rewarding patient investors through 2026 and well beyond.
