Top Canadian Stocks to Buy for Your TFSA

These four companies are some of the top Canadian stocks you can own, making them ideal investments to buy and hold in your TFSA.

Daniel Da Costa

Daniel joined the Motley Fool Canada team in 2019 with years of experience in banking and investing. Growing up the son of a proprietary stock trader and educator, Daniel’s always found joy in helping Canadians to improve their financial situations. With the Motley Fool, Daniel sees an even more rewarding way to impact Canadians positively. A student and great admirer of Warren Buffett, he’s always looking for investments offering growth at a reasonable price. Outside of finance, Daniel enjoys spending his time with family, sailing, and watching Formula One.

Published February 6, 2025 4:40 pm EST

There’s no question that the Tax-Free Savings Account (TFSA) is one of the best tools for investors to grow their hard-earned money. Canadians have the opportunity to buy some of the top stocks in the country while avoiding the significant taxes that would otherwise limit their growth potential.

It’s essential, though, to make sure the stocks you buy are high-quality companies you can count on for the long haul. Remember that TFSA contributions are limited, and what you may lose by investing in poor stocks you can’t get back.

So, with that in mind, if you’ve got cash in your TFSA that you’re looking to put to work, here are four of the top Canadian stocks to buy today.

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement. — Source: Getty Images

Two of the top Canadian growth stocks to buy for your TFSA

Growth stocks are some of the best investments for your TFSA because they offer significant upside, and all those gains come tax-free.

That’s why two of the top Canadian stocks to buy in your TFSA are Aritzia (TSX:ATZ), the vertically integrated retailer and goeasy (TSX:GSY), a specialty finance stock that’s grown rapidly for years.

Aritzia’s growth has been unbelievable over the past few years, including through the pandemic. However, it was impacted heavily by higher inflation and elevated interest rates over the past few years.

What’s promising about its pullback, though, is that inflation impacted it from a margin standpoint and not necessarily from a revenue standpoint. So, while many consumers slowed down their discretionary spending as the cost of living increased, Aritzia’s products continued to resonate with consumers, and its sales continued to grow.

So, with its margins now recovering, its earnings are also recovering. In fact, throughout 2024, its normalized earnings per share (EPS) increased by over 100%, and over the next two years, analysts estimate more than 30% growth in its EPS annually.

So, although the stock has recovered from its pullback over the last few years, it continues to have significant growth potential going forward.

Meanwhile, goeasy is another incredible growth stock to buy for your TFSA that grows rapidly and consistently.

For example, its sales are expected to grow more than 12% on average annually over the next two years. More importantly, though, its normalized EPS are expected to increase more than 20% in 2025 and another 13.4% in 2026.

To put that into perspective, goeasy reported normalized EPS of $5.17 in 2019. By the end of 2026, its normalized EPS is projected to be $22.74, showing what an unbelievable investment it is and why it’s one of the top growth stocks to buy in your TFSA.

Two top defensive growth stocks you can plan to hold for years to come

In addition to rapid growth stocks, many investors prefer reliable companies that can still grow significantly over the long haul. That’s why Brookfield Infrastructure Partners (TSX:BIP.UN) and GFL Environmental (TSX:GFL) are two of the top Canadian stocks to buy in your TFSA.

Brookfield, for example, owns a portfolio of essential infrastructure assets all over the world. Therefore, the revenue and cash flow it generates are robust and highly predictable.

Furthermore, it operates like a growth stock, consistently selling off its more mature assets and reinvesting the proceeds into new opportunities.

In fact, it has a stated goal of growing shareholder capital by 12% to 15% over the long haul while increasing its dividend by 5% to 9% annually. And if you buy Brookfield today, you can lock in a yield of more than 5.2%.

Meanwhile, GFL is a top defensive growth stock because it operates in one of the most important industries in our economy, waste management. Yet, it also consistently expands its business, especially by making value-accretive acquisitions.

As the waste management industry consolidates, stocks like GFL continue to grow, which helps scale costs and improve margins.

Therefore, it’s no surprise that its earnings before interest, taxes, depreciation and amortization (EBITDA) increase so quickly. For example, while analysts estimate its revenue grew by 4.5% in 2024 and will rise another 6.8% in 2025, its EBITDA is projected to have increased by 11.4% in 2024 and will jump another 11.2% in 2026.

So, if you’re looking for top Canadian stocks to buy for your TFSA, these two defensive growth stocks are easily some of the best to consider.