Canadians, it’s time to wake up! According to analysts at CIBC Capital Markets, you might be missing out on ‘wonderful buy-and-hold stocks that are hiding in plain sight.’ With many investors focused solely on commodity stocks within the S&P/TSX, they often overlook robust alternatives for a 'set and forget' portfolio.

Ian de Verteuil from CIBC highlighted that over half the S&P/TSX’s market cap comes from companies poised to deliver stable, attractive long-term returns. These companies, which CIBC refers to as Canada’s ‘oligopolies,’ including banks, railways, grocers, and some telecoms, have historically outperformed—not just the TSX but also the S&P 500 over the long haul.

Impressively, just 15 companies in these sectors contribute around 30% of the TSX’s market cap, while accounting for 35% of dividends and 25% of share buybacks. De Verteuil confidently asserted, “These stocks have demonstrated excellent ‘buy-and-hold’ traits in the past, and we see no reason why that trend will change.”

However, CIBC’s report doesn’t stop there. It identifies new contenders that are strategically positioning themselves to challenge these long-standing leaders. These emerging ‘wanna-be’ oligopolies include life insurance, property and casualty insurance, waste management, and pipeline companies—currently representing about 13% of the S&P/TSX’s market cap.

Remarkably, consolidation has reshaped these industries, with life insurance now dominated by four giants—Manulife, Sun Life, Great-West, and iA Financial—controlling over 70% of the market. Similarly, waste management has streamlined to just two players making up 2% of the TSX market.

Pipelines and energy infrastructure companies share critical characteristics with CIBC’s cash-flow oligopolies. These capital-intensive sectors are essential not only for services akin to telecommunications but also for the overall functioning of Canada’s economy, much like railways do.

In conclusion, if you’re a Canadian investor, it’s time to broaden your horizons. Explore these hidden stock gems that promise stability and growth, while continuing to evolve with the changing market landscape. The golden opportunities may just be waiting for your keen eye!