TFSA: 4 Canadian Stocks to Buy and Hold Forever

These Canadian stocks have strong growth prospects, offer steady dividend income, and are more likely to generate above-average returns.

| More on:

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investing in Canadian stocks through a Tax-Free Savings Account (TFSA) can significantly boost overall returns in the long run. This is due to the fact that capital gains and dividends are exempt from tax in a TFSA. Therefore, adding fundamentally strong Canadian stocks to your TFSA portfolio could help create significant wealth. With this background, here are four Canadian stocks to buy and hold forever in a TFSA.

goeasy

goeasy (TSX:GSY) is a must-have stock in your TFSA portfolio for growth and income. This subprime lender has delivered double-digit growth in sales and earnings over the past decade. Moreover, it enhanced its shareholders’ value through higher dividend payments. Thanks to its stellar financials and solid dividend payments, goeasy stock spiked over 1,118% in 10 years.

Created with Highcharts 11.4.3Goeasy PriceZoom1M3M6MYTD1Y5Y10YALL6 Apr 20202 Apr 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '252021202120222022202320232024202420252025050100150200250www.fool.ca

The momentum will likely be sustained owing to its leadership in Canada’s large non-prime lending market, solid credit underwriting capabilities, and omnichannel offerings. Further, goeasy’s wide product range, geographic expansion, and increasing funding capacity will continue to drive its loan portfolio and revenue. In addition, operating leverage, steady credit performance, and improved efficiency will expand its earnings and support higher dividend payouts.

Alimentation Couche-Tard

TFSA investors could consider Alimentation Couche-Tard (TSX:ATD). It operates a network of convenience stores, supplies fuel, and offers electric vehicle (EV) charging. Thanks to its defensive business model and value pricing strategy, Alimentation Couche-Tard consistently delivers solid financials.

The company’s growing earnings base enabled it to increase its dividends at a compound annual growth rate (CAGR) of 25.6% over the past decade. Moreover, its solid financials led to a spike in its share price of over 246% during the same period.

Created with Highcharts 11.4.3Alimentation Couche-Tard PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Looking ahead, Couche-Tard’s extensive network of stores, diversified revenue base, increased penetration of private-label products, and value proposition will likely drive its financials. Further, its strategic acquisitions, expanding EV charging footprint, and customer loyalty augur well for future growth.

Brookfield Asset Management

Brookfield Asset Management (TSX:BAM) is another top Canadian stock to buy and hold in your TFSA portfolio. This alternative asset management company benefits from its asset-light model and exposure to diversified high-growth sectors such as nuclear power, renewable energy, and artificial intelligence (AI) infrastructure. The company’s focus on these high-quality investments will likely provide it with significant growth opportunities and enable it to deliver solid returns.

Created with Highcharts 11.4.3Brookfield Asset Management PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Brookfield is also consolidating its credit operations into the Brookfield Credit division, which will position it well to capitalize on the solid demand for credit solutions. Further, Brookfield targets to double the size of its business within the next five years, which will further drive its earnings growth at a double-digit rate, supporting its payouts. In addition, its growing fee-bearing capital and higher fee-related income will continue to support its dividend payouts and share price.

CES Energy Solutions

CES Energy Solutions (TSX:CEU), which produces advanced chemical solutions for the energy industry, is another top stock to buy and hold forever. CES is witnessing increasing demand for specialized solutions amid the growing complexity of oil and gas extraction. Further, as operators push for techniques like longer lateral drilling, enhanced hydraulic fracturing, and pad optimization to achieve higher efficiency, CES could see solid demand for its innovative production and drilling chemicals that help maximize output.

Created with Highcharts 11.4.3Ces Energy Solutions PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

CES Energy will likely deliver solid free cash flows in all commodity cycles, driven by its asset-light business model, high exposure across all major U.S. basins, and steady revenues from production chemicals. Additionally, favourable commodity prices, growing adoption of advanced chemical technologies, and steady upstream activity in North America will support its growth. Moreover, CES’s strategic procurements provide a competitive edge and will support its future growth.

Should you invest $1,000 in Canadian Natural Resources right now?

Before you buy stock in Canadian Natural Resources, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Canadian Natural Resources wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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 has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Brookfield Asset Management and Ces Energy Solutions. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

grow money, wealth build
Dividend Stocks

Why I’d Invest $10,000 in This Undervalued Dividend-Growth Stock for Decades of Income

This undervalued dividend stock offers a high yield of over 8% and can help you earn more than $200 in…

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Here’s Exactly How a $20,000 TFSA Could Potentially Grow to $200,000

Index funds like the iShares S&P/TSX Capped Composite Index (TSX:XIC) are tax free in a TFSA.

Read more »

Dividend Stocks

How I’d Invest $6,000 in Canadian Real Estate Stocks to Build Lasting Wealth

Canadian REITs on sale! See how grocery-anchored retail properties offering 9% yields could turn $6,000 into lasting wealth despite US…

Read more »

rain rolls off a protective umbrella in a rainstorm
Dividend Stocks

Economic Headwinds: Should You Still Consider Buying the Dip?

A market dip might seem like a bumpy road, but it can be far smoother in the future with the…

Read more »

e-commerce shopping getting a package
Dividend Stocks

Consumer Spending Plays Amidst the Current Market Dip

Consumption may go down in market dips, but certain consumer stocks are certainly better off than others.

Read more »

Asset Management
Dividend Stocks

12% Dividend Yield! I’m Buying This TSX Stock and Holding for Decades

Stocks with high-dividend yields carry risks. But they could be a good long-term investment. Here is a 12% dividend stock…

Read more »

Canadian flag
Dividend Stocks

How I’d Build a Foundation of Canadian Value Stocks in My Investment Strategy

Canadian investors can explore iShares Canadian Value Index ETF for value stock ideas to build a foundation for their diversified…

Read more »

Canadian dollars are printed
Dividend Stocks

How I’d Transform a $30,000 TFSA Into a Cash-Flow Machine

Here's why TFSA investors should consider owning dividend stocks such as Mullen Group in 2025.

Read more »