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.
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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.
