A well-diversified Tax-Free Savings Account (TFSA) should ideally include high-growth stocks as they can compound in the long run and deliver solid, tax-free returns. In this article, I’ll reveal five top Canadian growth stocks that could deliver exceptional returns over time, making them perfect additions to your TFSA portfolio.
Aritzia stock
Aritzia (TSX:ATZ) is a Canadian apparel designer and retailer with a strong presence in North America. ATZ stock has been on a tear of late, climbing 82% in the last year to currently trade at $70.40 per share with a market cap of $8 billion.
In its latest quarter ended November 2024, Aritzia’s revenue jumped 11.5% YoY (year over year) to $728.7 million, fueled by a 23.6% surge in its U.S. sales and robust e-commerce growth of 14%. Its adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) also soared 48.7% YoY.
Aritzia continues to focus on its real estate expansion strategy with new flagship stores and accelerating e-commerce investments to strengthen its brand presence. With an expanding U.S. footprint and rising profitability, it’s a solid pick for long-term TFSA investors.
Shopify stock
Now, let’s turn our attention to another major player in Canada’s growth sector, Shopify (TSX:SHOP). After rallying by 46% over the last year, SHOP stock currently trades at $167.67 per share with a market cap of $216.8 billion.
In the third quarter of 2024, the Ottawa-based e-commerce platform giant’s revenue surged 26% YoY to US$2.16 billion, with its free cash flow expanding to 19% of revenue. This marked its sixth straight quarter of over 25% revenue growth, highlighting its financial durability.
Shopify’s long-term focus includes enhancing its artificial intelligence (AI)-driven commerce tools, strengthening payment solutions, and expanding internationally. Given these growth drivers, it remains an excellent buy-and-hold stock for TFSA investors looking for long-term, tax-free returns.
Bombardier stock
Speaking of strong long-term picks, let’s talk about Bombardier (TSX:BBD.B), a top name in the business jet manufacturing industry. Despite some recent volatility, Bombardier stock has climbed nearly 60% in the last year and is currently trading at $83.15 per share, with a market cap of $8.3 billion.
In 2024, Bombardier’s revenue surged 7.7% YoY to US$8.7 billion, surpassing its guidance, with services revenue hitting a record US$2.04 billion, achieving its long-term target one year early. Similarly, its adjusted EBITDA jumped 11% from a year ago to US$1.36 billion.
Besides its strong financials, Bombardier’s focus on expanding its defence and services segments, improving margins, and strengthening its balance sheet makes it an excellent buy-and-hold stock for TFSA investors.
Air Canada stock
Air Canada (TSX:AC) is another solid stock to consider in 2025. As Canada’s largest passenger airline, it connects over 180 destinations worldwide. Despite recent volatility, AC stock currently trades at $18.12 per share, with a market cap of $6.2 billion.
In the third quarter of 2024, the Canadian flag carrier’s revenue jumped 11% sequentially to $6.1 billion, while adjusted quarterly EBITDA surged 67%. By 2028, Air Canada plans to achieve $30 billion in revenue, improve margins, and further expand its network, which should accelerate its financial growth, making it a strong TFSA pick for patient investors.
Dollarama stock
And finally, let’s talk about Dollarama (TSX:DOL), a top discount retailer in Canada. DOL stock has surged over 41% in the last 12 months to currently trade at $139.55 per share with a market cap of $38.8 billion. While its annualized dividend yield sits at a modest 0.3%, the company’s strong financials make up for it.
In its latest quarter ended October 2024, the company’s sales grew 5.7% YoY to $1.6 billion, while its adjusted earnings increased by 6.5% from a year ago to $0.98 per share. In addition, its EBITDA margin expanded to 32.6% last quarter.
Dollarama plans to expand its Canadian store count to 2,200 by 2034 and is investing in a new logistics hub in Western Canada. These long-term initiatives, alongside its consistent revenue growth, make it a solid TFSA stock to hold forever.
