For investors focused on the long term — particularly those building core positions in registered accounts like a TFSA or RRSP — identifying high-quality stocks with durable earnings, strong balance sheets, and growth catalysts can make a meaningful difference over time. Rather than chasing short-term market trends, quality companies with established competitive advantages and clear strategic direction tend to outperform over long investment horizons. Based on current fundamentals and positioning within their respective industries, two TSX stocks stand out as top opportunities right now.

1. A Leading Canadian Bank With Defensive Growth and Reliable Dividends

Canada’s largest banks have historically been a cornerstone of domestic equity investing, and for good reasons. They operate across diversified financial services lines — including personal and commercial banking, wealth management, and capital markets — which helps smooth earnings through economic cycles. This bank in particular has consistently delivered solid revenue growth, disciplined capital management, and a reliable dividend history.

Key strengths include:

Diversified revenue streams that reduce reliance on any single segment.
A strong capital position that supports dividend growth and risk management.
Ongoing strategic investments in digital and operational efficiency, which can improve margins and client retention over time.

For investors seeking a blend of stability and income, this type of stock has an attractive risk-reward profile. Its defensive characteristics can help protect portfolios during economic downturns, while dividend reinvestment inside a TFSA or RRSP can significantly enhance long-term returns.

Also Read: Best long term Canadian stocks

2. A Canadian Resource or Materials Leader With Structural Demand Tailwinds

The second opportunity comes from the resource sector, where companies tied to commodity markets that support long-term global trends can provide strong performance potential. This stock is a sizeable producer with exposure to industrial metals that are essential to electrification, renewable energy build-outs, and infrastructure development.

This company’s appeal rests on several factors:

Exposure to secular growth trends, including energy transition and increased infrastructure spending.
A competitive cost structure that helps protect margins even in down cycles.
A history of disciplined capital allocation, balancing growth investment with shareholder returns via dividends or share buybacks.

Resource stocks can be cyclical, but those with strong fundamentals and dominant positions in global markets are often among the best-performing names over full commodity cycles. For long-term investors, exposure to these trends can complement defensive holdings like banks and increase portfolio diversification.

Also Read: Long term investing in Canada

Why These Stocks Matter Now

Both of these companies offer different but complementary characteristics: one brings defensive stability and income, while the other offers exposure to major structural demand drivers with growth potential. In combination, they provide a balanced approach that can help investors navigate uncertainty while positioning for upside over the next decade.