5 Canadian Stocks to Buy and Hold Forever in Your TFSA 

Are you planning your TFSA portfolio for 2024? Here are a few stocks you can buy at the dip and hold for a decade or more to get rich.

| More on:
TFSA and coins

Image source: Getty Images

The Tax-Free Savings Account (TFSA) has a limit of $7,000 for 2024. But in which stocks should you invest? The overall stock market has been slightly bearish over anticipation of interest rate decisions. A 5% interest rate has dried up money in the market and forced many companies and individuals to divert their funds towards servicing their debt. But those without debt are at a bright spot in terms of investments. 

Five Canadian stocks to buy and hold forever in your TFSA

Buying stocks in a market downturn inflates your long-term returns. In 2009, Canada introduced the TFSA to encourage savings habits. Those who invested in strong stocks then are now wealthy and unaffected by the bear market. If you missed the 2009 dip, now is the time to buy the following stocks and hold them for the long term to generate wealth. 

Automotive stocks 

The stock market has been ruthless on auto stocks. Their post-pandemic revival was short-lived as semiconductor shortages inflated the inventory of all automakers. They couldn’t deliver cars due to a lack of components. When the supply issue eased, demand took a hit as people postponed their car purchases because of high borrowing costs.

These are all temporary setbacks. The long-term demand for electric vehicles (EVs) is intact. Auto components maker Magna International (TSX:MG) reported a strong recovery in sales (up 13%) and profits (up 105%) in 2023 and expects continuous growth in the next two years as global light vehicle production increases. However, the stock did not price in this recovery, and the stock price slipped more than 6.5% in a year. While profits improved, the company continued to grow its dividend during this difficult time, showcasing its commitment to give returns to shareholders.

The automotive sector is cyclical, with phases of down and up cycles. After the 2020–2021 upcycle, there was a downturn. But another upcycle is nearby as EV and autonomous vehicle momentum picks up. You could see the stock surge more than 100% in an upcycle. In the meantime, the stock can give you an over 3% annual dividend, hedging your money against inflation. 

BlackBerry (TSX:BB) was also affected by the automotive downturn. It has a QNX royalty revenue backlog of $640 million. This royalty is related to the QNX design wins for cars. When cars are produced and sold, BlackBerry gets a share as royalty. BlackBerry shareholders have been waiting for the moment when the company realizes this backlog revenue. The stock could see a sharp jump at that point. And a turnaround could set the stage for long-term growth. 

The dividend balance

Beyond cyclical stocks, you could give your portfolio the stability of dividends with BCE (TSX:BCE). The telco has been in a downtrend since interest rate hikes began, as high-interest expenses ate up the profits. The company posted strong 2023 profits but a weak 2024 outlook as it restructures its business. BCE is closing some of its slow-growth radio stations and investing in high-growth cloud services and digital transformation. Change is always difficult. But BCE has undergone many such changes in the last 50 years without dividend cuts. 

Now is an opportune time to buy and hold BCE stock while it trades at its 10-year low. You can lock in an 8%-plus dividend yield, and if you opt for a dividend reinvestment plan, you can even compound your returns in the long term. 

Stocks in a long-term growth pattern

You could balance your portfolio with long-term growth stocks Descartes Systems and goeasy. Descartes is a supply chain management solutions provider that helps companies simplify the complex tasks of trade and inventory. The stock has been growing at an average annual rate of over 20% for the last 10 years and can continue this momentum as trade and logistics get more complicated. 

goeasy is a non-prime lender that gives short-term loans at a high interest rate. It has been growing steadily, which helped it keep risk in check and increase its stock price gradually over the long term. All these stocks can give decent returns in the long term. 

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 Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Descartes Systems Group and Magna International. The Motley Fool has a disclosure policy.

More on Top TSX Stocks

gas station, car, and 24-hour store
Stocks for Beginners

Should You Buy Alimentation Couche-Tard Stock?

The decision to buy Alimentation Couche-Tard stock isn’t as easy as it once was. Here’s a look at the case…

Read more »

edit Woman in skates works on laptop
Stocks for Beginners

3 Defensive TSX Stocks for Lower-Risk Investors

Looking for some of the best defensive TSX stocks to buy? Here's a trio of options that will appeal to…

Read more »

Index funds
Tech Stocks

Constellation Software Stock: Buy, Sell, or Hold?

Unveiling the Code: Should you Buy, Hold, or Sell Constellation Software (TSX:CSU) stock at current levels?

Read more »

Hourglass projecting a dollar sign as shadow
Top TSX Stocks

Just Released: 5 Top Stocks to Buy in March 2024 [PREMIUM PICKS]

Forget the hype. The best opportunity is in a sector the market is ignoring.

Read more »

question marks written reminders tickets
Dividend Stocks

Better Buy: Loblaw Companies or Metro Stock?

Loblaw Companies (TSX:L) stock is riding on recent momentum. Meanwhile, Metro (TSX:MRU) is executing for future earnings growth.

Read more »

Redwood trees stretch up to the sunlight.
Tech Stocks

These 3 Magnificent Stocks Keep Driving Higher

Constellation Software, Dollarama and another TSX stock have consistently generated positive investment returns. Here’s why they belong in your retirement…

Read more »

Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization
Dividend Stocks

Got $5,000? These 2 Growth Stocks Are Smart Buys

Kinaxis Inc (TSX:KXS) is a Canadian growth stock worth considering.

Read more »

Striking match creates fire and light.
Stocks for Beginners

Just Released: 10 Stocks Every Canadian Should Own in 2024 [PREMIUM PICKS]

The Motley Fool's yearly list of "Starter Stocks" is our attempt to answer a simple question: “Where do I go…

Read more »