2 Canadian Stocks You Can Buy and Hold Forever

Brookfield Asset Management stock and Scotiabank stock are ideal assets to buy and hold for the long haul in your TFSA.

| More on:
Dollar symbol and Canadian flag on keyboard

Image source: Getty Images

Having the ability to find the right high-quality companies and holding them for the long haul is one of the best ways to set yourself up for success as an investor. Many new investors try to time the market or make quick trades in and out of positions in companies to attempt to capture quick profits. Unfortunately, these decisions result in more harm than good for investors.

If you want to create sustainable wealth for yourself, finding forever stocks to buy and hold in a Tax-Free Savings Account (TFSA) is the ideal approach to stock market investing. Today, I will discuss two such stocks that you can buy and hold for the long haul.

Brookfield Asset Management

Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) boasts the reputation for being one of the top assets to buy and hold for the long run to enjoy compounded returns. Brookfield Asset Management has provided its investors with an average of 15.88% returns each year since 1995. Its returns reflect almost three times the returns that the broader stock market has provided investors in the same period.

The company invests in and operates real assets, including infrastructure, real estate, and renewable energy assets. Due to the diversified nature of its assets, it would be wise to keep a close eye on the company’s financial reports. Brookfield Asset Management boasts a top-notch management team that knows how to find and acquire high-quality assets to boost the company’s cash flows.

Trading for $71.47 per share at writing, it could be a stock well worth buying and holding onto for the long haul.


Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is one of the Big Six Canadian banks, and it is a top stock for investors with a long investment horizon. Canadian banking stocks operate in a highly regulated industry that makes it challenging for new competitors in the banking sector to displace the leading operators.

While you cannot go wrong with picking any of the top banking stocks, Scotiabank is an ideal stock pick due to its massive upside potential.

Scotiabank has established a strong presence in the countries that constitute the Pacific Alliance. The region includes countries like Chile, Mexico, Peru, and Columbia. The region is expected to grow much faster than the G7 countries in the coming years due to the rapidly growing middle class that these countries boast. Such a development could see Scotiabank enjoy a massive boost to its revenues, which the bank will reflect in shareholder returns.

The stock is trading for $79.80 per share at writing and boasts a juicy 4.51% dividend yield — another reason why it’s an attractive asset to buy and hold for the long run.

Foolish takeaway

Adding long-term buy-and-hold stocks to your TFSA portfolio can help you truly benefit from the tax-sheltered status of the account type to enjoy sustainable and long-term wealth growth. Since you use after-tax dollars to store investments in your TFSA, the Canada Revenue Agency (CRA) does not deduct any taxes from the earnings inside the account. Additionally, withdrawals from your TFSA are also tax-free.

Allocating the contribution room in your TFSA to high-quality dividend stocks can help you generate significant tax-free returns as long as you remain invested through dividend income and capital gains. Scotiabank stock and Brookfield Asset Management stock could be ideal stocks to begin building such a portfolio.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Brookfield Asset Management. The Motley Fool recommends BANK OF NOVA SCOTIA and Brookfield Asset Management Inc. CL.A LV.

More on Dividend Stocks

Man holding magnifying glass over a document
Dividend Stocks

Passive-Income Investors: 2 TSX Dividend Stocks to Watch in February

There’s never a bad time to think about building a passive-income stream. Here are two top dividend stocks to get…

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Dividend Stocks

Better Buy: Enbridge Stock vs. Telus

Enbridge and Telus are top TSX dividend stocks. Is one a better bet right now?

Read more »

Dividend Stocks

TFSA: How to Invest $88,000 to Get $5,450/Year in Passive Income

Top TSX dividend stocks such as Enbridge can be held in your TFSA to benefit from steady payouts and capital…

Read more »

edit Sale sign, value, discount
Dividend Stocks

3 Cheap Dividend Stocks (Down Over 30%) to Buy in January 2023

Given their discounted stock prices and high yields, these three cheap dividend stocks could be attractive for income-seeking investors.

Read more »

A worker drinks out of a mug in an office.
Dividend Stocks

TFSA Investors: Earn Passive Income With 3 Blue-Chip Stocks

TFSA investors can worry less about a recession and earn passive income with three blue-chip stocks as core holdings.

Read more »

Hourglass projecting a dollar sign as shadow
Dividend Stocks

Is Now the Right Time to Buy Consumer Discretionary Stocks?

Investors cannot paint consumer discretionary stocks with a wide brush. Each stock must be investigated individually. Here's why.

Read more »

Golden crown on a red velvet background
Dividend Stocks

2 Ultra-Stable Canadian Stocks Just Crowned as Dividend Aristocrats for 2023

Waste Connections (TSX:WCN) stock and another Dividend Aristocrat could help investors crush the markets in 2023.

Read more »

Golden crown on a red velvet background
Dividend Stocks

Create $200 in Passive Income Every Quarter From 1 Defensive Stock

Risk-averse investors can seek safety in a defensive stock and earn more in passive income in 2023 and beyond.

Read more »