TFSA: 3 Buy and Hold Dividend Stocks With Massive Long-Term Potential

Buying and holding these three dividend stocks can help create massive wealth in the long-term.

| More on:

Image source: Getty Images

A TFSA (Tax-Free Savings Account) is an excellent tool for saving and investing. As dividends, capital gains, and interest income are not taxed in a TFSA, it significantly boosts your actual returns over time. Thus, even if the market remains uncertain, investors should continue to buy high-quality stocks that offer dividends and growth. This helps create a solid corpus in the long-term and allows you to fetch regular tax-free passive income. 

So, if you have contribution room in your TFSA, consider buying and holding these three dividend-paying stocks with massive long-term potential. 


Shares of the communication giant Telus (TSX:T)(NYSE:TU) are a must-have in your portfolio for solid income and growth. Through its multi-year dividend-growth program, Telus consistently enhances its shareholders’ value. Further, its ability to deliver consistent profit and opportunities from the 5G expansion provides a massive long-term growth opportunity. 

Notably, Telus’ growing customer base and higher revenues support its profitability. Despite significant investments in network infrastructure, Telus’ adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) has an average compound annual growth rate or CAGR of 4% since 2017.

Telus has paid over $16.6 billion in dividends in the last 18 years. Moreover, it expects to increase its dividend by a mid-to-high single-digit rate annually in the coming years. 

Overall, its growing customer base, low blended churn rate (less than 1%), 5G expansion, momentum in the agriculture & consumer goods business, and international expansion position it well to deliver robust growth. Further, investors can earn a well-protected and high yield of 5.1% by investing in Telus stock at current levels. 


goeasy (TSX:GSY) is a solid stock with significant long-term growth potential, and there are good reasons for this. Its earnings have been growing at a double-digit rate (a CAGR of 34% since 2011), which supports its dividend growth. 

goeasy has uninterruptedly paid dividends for over 18 years. Meanwhile, it increased its dividend by a CAGR of 34.5% in the past eight years. goeasy is well-positioned to capitalize on the growing demand for non-prime consumer loans. Meanwhile, the company is expanding its product base and distribution channels. Also, goeasy’s selective acquisitions augur well for earnings and dividend growth. 

Barring 2022, goeasy has delivered exceptional returns and has outperformed the benchmark index by a wide margin. This year, the stock, like many of its peers, was impacted by rising interest rates and the overall market downturn. However, the growth in its loan portfolio, stable credit quality, and margin expansion will lead to a massive upside in goeasy stock, particularly as the economy begins to recover. Further, investors could earn a solid yield of 3.4%.   

Algonquin Power & Utilities

Next up are shares of Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN). Though it operates a low-risk utility business, it has consistently delivered healthy returns and enhanced shareholder value through higher dividend payments (its cumulative five-year total shareholder return stands at 101%). 

Algonquin Power grew its dividend for 12 years (at a CAGR of 10%). These payouts are supported by its growing earnings base which has a CAGR of about 11% in the last five years. The company’s regulated business, opportunities in the renewable segment, and rate base growth will support future earnings growth and dividend payments. 

Algonquin Power projects a 7-9% annual increase in its dividend over the next five years. Meanwhile, investors can now earn a stellar dividend yield of 6.5% by investing near current levels.

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends TELUS CORPORATION. The Motley Fool has a disclosure policy.

More on Dividend Stocks

a person prepares to fight by taping their knuckles
Dividend Stocks

TFSA Investors: 2 High-Yield Heavyweights Worth a Sizeable Investment

SmartCentres REIT (TSX:SRU.UN) and another high-yield heavyweight to buy now while rates and fears remain high.

Read more »

Growing plant shoots on coins
Dividend Stocks

Buy These 3 High-Yield Stocks With Healthy Payout Ratios

The payout ratio is a good way to understand a dividend-paying company’s financial stability, and it’s a good way to…

Read more »

Hour glass and calendar concept for time slipping away for important appointment date, schedule and deadline
Dividend Stocks

Your Guide to the Best Monthly Dividend Stocks in Canada

Three of the best monthly dividend stocks in Canada have market-beating returns despite the elevated volatility in 2023.

Read more »

data analyze research
Dividend Stocks

Passive Income: How to Earn $1,191/ Per Year Tax Free

Make $1,191/year in tax-free passive income with these top TSX dividend stocks.

Read more »

Senior couple at the lake having a picnic
Dividend Stocks

3 Under-$30 Stocks That Pay Over a 5% Dividend Yield

These three dividend stocks below $30 could boost your passive income.

Read more »

grow money, wealth build
Dividend Stocks

2 Small-Cap Growth Stocks Worth Adding to Your Arsenal

While large-cap, blue-chip stocks make for the safest investments, there are plenty of small-cap growth stocks that offer safe and…

Read more »

A worker gives a business presentation.
Dividend Stocks

3 Blue-Chip Stocks to Hold Tight in a Fluctuating Market

These three Canadian blue-chip stocks can be good investments to hold in a volatile market to protect your self-directed investment…

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

$25,000 in This Dividend Stock Pays You $1,920 a Year

Enbridge stock offers you a dividend yield of 7.7%, making it a top choice for income-seeking investors in 2023.

Read more »