A TFSA (Tax-Free Savings Account) isn’t just a place to hold cash. Instead, you can turn it into a powerful investment vehicle that could help you build life-changing wealth. The key is to invest in companies with long-term growth fundamentals, a long track record of posting strong earnings growth and rewarding investors with stable dividends.
In this article, I’ll highlight four of the best Canadian stocks that you can buy now and hold forever, which will ensure your TFSA continues to grow tax-free for years to come.
Couche-Tard stock
Let’s start with Alimentation Couche-Tard (TSX:ATD), a Laval-headquartered company that has built a stronghold in the convenience store and fuel retail business across North America, Europe, and beyond. ATD stock currently trades at $75.60 per share, with a market cap of $71.6 billion, and offers an annualized dividend yield of 1%.
Despite recent economic challenges, Couche-Tard’s revenue rose 6% YoY (year over year) to US$17.4 billion in the quarter ended in October 2024, supported by acquisitions and solid performance in its European wholesale fuel segment. However, same-store sales saw a slight decline as consumer spending remained weak.
As declining interest rates give a boost to consumer spending in the coming quarters, its financial growth trend is likely to improve significantly. Moreover, its strong balance sheet, focus on strategic growth, and ability to weather economic shifts make it a solid long-term bet for TFSA investors.
Nutrien stock
Nutrien (TSX:NTR) could be another value stock for TFSA investors to consider now. This Saskatoon-based agricultural chemicals giant plays an important role in the global crop nutrition industry. NTR stock is currently trading at $74.12 per share, with a market cap of $36.4 billion and an annualized dividend yield of 4.19%. While the stock has seen some fluctuations, it has gained 9.2% over the last year.
Nutrien reported US$582 million in net profit for the first nine months of 2024, with record potash sales volumes and improved retail product margins in North America. However, overall earnings dipped due to lower selling prices.
For the long run, Nutrien is doubling down on efficiency, aiming for US$200 million in annual cost savings by 2025. With its global scale, strong distribution network, and strategic capital allocation, NTR stock is a strong fit for TFSA investors looking for steady growth and income.
Imperial Oil stock
Speaking of reliable long-term bets for TFSA investors, Imperial Oil (TSX:IMO) could also be a quality stock to own. This Calgary-based energy giant is a major player in oil refining, marketing, and production. Currently, IMO stock trades at $95.16 per share, with a market cap of $48.4 billion and a 3% annualized dividend yield.
Despite market fluctuations, Imperial posted a quarterly net profit of $1.23 billion in the December 2024 quarter, supported by record-high production at Kearl and strong downstream performance.
Its strong financial performance is the key reason why IMO stock has delivered nearly 200% returns in the last five years. In addition, the company continues to expand with investments in renewable diesel and cost-efficient oil sands production, making it a future-proof stock pick for TFSA investors.
Telus stock
Let’s wrap up our list with Telus (TSX:T), a top telecommunications provider in Canada known for its top-tier wireless and broadband services. Telus stock is currently trading at $20.85 per share, with a market cap of $31.3 billion and a solid annualized dividend yield of 7.7%.
Even as macroeconomic concerns continue to haunt businesses, Telus posted a 58% YoY increase in its free cash flow in the third quarter of 2024, while net profit jumped 88% from a year ago to $257 million. Moreover, Telus is doubling down on cost efficiencies, expanding its PureFibre and 5G networks, and growing its digital services, making it a compelling long-term pick for TFSA investors.
