The 1 Single Stock That I’d Hold Forever in a TFSA

There are plenty of great stocks to buy, but this gem is the one single stock that that I’d hold forever in a TFSA.

| More on:
TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins

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

There’s no shortage of great investments for both seasoned and new investors alike. Between all those great stocks, there is one single stock that I would love to hold forever in a Tax-Free Savings Account (TFSA).

That stock is Enbridge (TSX:ENB), and here’s why it’s the single stock to hold forever in a TFSA.

Let’s start with an introduction

Enbridge is best known for its lucrative pipeline network, and there’s a good reason for that. The energy infrastructure behemoth hauls a whopping one-third of all North American-produced crude across its network.

But that’s not all. Enbridge’s pipeline network also consists of a natural gas segment, which is responsible for transporting one-fifth of the natural gas needs of the U.S.

Let that sheer volume sink in for a moment.

As defensive as that sounds, there’s another key point to note. Enbridge charges for the use of that network and not by the volatile price of the commodity hauled. In other words, irrespective of which way oil prices go, Enbridge generates a massively reliable (and growing) revenue stream.

Suffice it to say, Enbridge is an incredibly lucrative defensive investment, and that’s just one reason why this is the single stock to hold forever in a TFSA.

Enbridge offers much more

Apart from that pipeline business, Enbridge offers investors other impressive verticals that increase its overall appeal. This includes both a renewable energy segment as well as a natural gas utility business.

The renewable energy business comprises over 35 facilities located across North America and Europe. Those facilities include solar, wind and hydro elements, generating a 3,481-megawatt net capacity. That’s enough to meet the energy of 1.3 million homes and, incredibly, isn’t even the best part.

Renewable energy facilities are bound by long-term regulated contracts that last decades. This provides yet another recurring and stable revenue stream for the company, which leaves plenty of room for Enbridge to invest in growth and pay out a generous dividend (more on that in a moment).

Enbridge has also invested heavily into the segment, dropping nearly $10 billion over the segment over the past two decades.

Turning to the natural gas segment, Enbridge’s gas business is one of the largest utilities in North America, with seven million customers. The segment provides Enbridge with another source of recurring revenue stream that continues to see strong growth.

Again, this helps to make Enbridge the single stock to hold forever in a TFSA.

What about income?

One of the main reasons why investors continue to flock to Enbridge is for its juicy dividend. As of the time of writing, Enbridge offers investors a tasty quarterly dividend that carries a yield of 5.84%. That makes it one of the better-paying dividends on the market.

This means that investors purchasing $25,000 worth of Enbridge can expect to generate an income of just over $1,450 in the first year. I say in the first year because Enbridge has an established precedent of providing investors with an annual healthy bump to that dividend. That tradition has been in place for 30 consecutive years, and Enbridge has no plans to discontinue that cadence.

Created with Highcharts 11.4.3Enbridge PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Should you buy Enbridge as a single stock to hold forever in a TFSA?

Enbridge is the complete package for investors. The company offers a diversified business with defensive appeal, significant growth potential and a juicy dividend.

This makes Enbridge, in my opinion, a stellar stock to hold forever in a TFSA as part of any well-diversified portfolio.

Buy it, hold it, and watch it (and your future income) grow.

Should you invest $1,000 in Allied Properties Real Estate Investment Trust right now?

Before you buy stock in Allied Properties Real Estate Investment Trust, 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 Allied Properties Real Estate Investment Trust 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 Demetris Afxentiou has positions in Enbridge. The Motley Fool recommends Enbridge. 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

Confused person shrugging
Dividend Stocks

Where to Invest $2,500 in the TSX Today

These TSX stocks offer attractive dividends and a shot at decent upside on a rebound.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

Invest $25,000 in These Dividend Stocks for $1,956.66 in Annual Passive Income

Dividends stocks can make a huge difference, even if shares don't move an inch. And these might be the best.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

Got $5,000? 5 Income Stocks to Buy and Hold Forever

These income stocks have a solid dividend-payout history that can help you earn stress-free passive income.

Read more »

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 »