Top Canadian Stocks to Buy Now and Hold for a Lifetime in a TFSA

If you want stability in your long-term TFSA, then these four are choices you can pick up again and again.

Amy Legate-Wolfe

Author Bio

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband.

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Favorite Investment Quote

“October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published November 11, 2024 8:30 pm EST

The Tax Free Savings Account (TFSA) was meant for long-term investing. But when it comes to buying for a lifetime, where should Canadians go? Some of the best investment options are those that have already demonstrated a long-term growth strategy. So let’s look at some that are ideal for long-term investors.

Granite REIT

Starting with Granite REIT (TSX: GRT.UN), this real estate investment trust (REIT) specializes in industrial and logistics properties – a sector that’s been thriving with the rise of e-commerce. Granite’s recent earnings show solid revenue growth, with a year-over-year increase of 7.6% and a profit margin of 42.5%, indicating strong profitability. Its dividends are appealing too, with a yield over 4%. This is rare in the REIT space. The combination of growth, income, and industrial focus makes Granite REIT an excellent choice for those seeking passive income with real estate exposure in their TFSA.

Granite REIT’s recent performance further supports its reputation as a strong dividend stock. With a five-year average dividend yield of 4% and an ex-dividend date coming up, Granite provides investors with reliable income. It also maintains a payout ratio of 89.7%, indicating a commitment to returning value to shareholders. For a TFSA, these dividend payments are tax-free, making Granite a sound pick for long-term income.

Extendicare

Extendicare (TSX: EXE) is a great option for those interested in healthcare, specifically senior care – an industry with long-term demand due to Canada’s aging population. In its most recent quarter, Extendicare reported impressive revenue growth of 13.3% year-over-year, and a forward dividend yield of 5.3% – a solid income source for TFSA investors. Although the healthcare sector has challenges, Extendicare’s focus on senior care aligns well with demographic trends, thus making it a resilient stock to hold long term.

Extendicare, while not without its challenges, has shown resilience. This highlights its effective management, even in the face of increased demand for healthcare services. With a five-year average dividend yield of 6.9%, Extendicare is an income powerhouse for TFSAs, especially as Canada’s aging population continues to drive demand for senior care.

goeasy

Goeasy (TSX: GSY) stands out for those who seek growth and income combined. This alternative lender has demonstrated consistent earnings growth, with quarterly earnings increasing 17.7% year-over-year. GSY’s dividend is also attractive, with a yield of around 2.6%, backed by a low payout ratio of 27.7%. With goeasy’s history of solid performance and innovative loan products, this stock could be a growth engine for your TFSA, especially with its focus on expanding consumer credit services in Canada.

Goeasy has proven itself with a 42.5% stock price range in the past year and a high ROE of 25.3%. Its high beta of 1.9 suggests potential for price movement – ideal for investors comfortable with a bit of volatility in exchange for growth. GSY’s strategic expansion into new markets and consumer lending make it a prime choice for those looking to maximize TFSA growth while enjoying quarterly dividends.

Manulife

Manulife Financial (TSX: MFC), one of Canada’s financial giants, is another compelling choice. Manulife’s recent earnings show stable quarterly revenue growth of 12.8%, highlighting its resilience in a competitive sector. Its trailing Price/Earnings (P/E) ratio of 17.7 and forward dividend yield of 3.9% add to its appeal as a stable, income-generating stock. For TFSA investors, Manulife offers exposure to insurance and wealth management – industries that benefit from economic recovery and population growth.

Manulife’s extensive financial services portfolio, combined with a low debt-to-equity ratio and strong institutional backing, positions it well for future growth. The company’s robust quarterly revenue growth and consistent dividend history underscore its stability – an essential factor for TFSA investors looking to hold onto stocks long-term without excessive volatility. With a 52-week range showing a steady climb, Manulife can be a pillar of financial strength in a diversified TFSA.