For Canadian investors, a Tax-Free Savings Account (TFSA) offers a great opportunity to invest in top-tier stocks without worrying about taxes eating into your profits. But to truly benefit from compounding growth, it’s important to hold the right stocks for the long term. If you’re looking for top Canadian stocks to buy and hold forever in your TFSA, these picks are worth considering.
CNR stock
Canadian National Railway (TSX:CNR) has long been a top player in North America’s transportation network. CNR stock is currently trading at $144.19 per share, with a market cap of $90.6 billion and an annualized dividend yield of 2.5%.
In the latest quarter ended December 2024, CN saw a 3% YoY (year-over-year) drop in revenue to $4.36 billion, while its operating income declined by 10% due mainly to lower freight volumes and weaker pricing power in some segments. However, it still remained profitable, with $1.82 per share in adjusted quarterly earnings.
In 2025, CN targets 10% to 15% earnings per share growth and plans to invest $3.4 billion to expand and modernize its network. With a strong infrastructure and steady demand for its freight services, it remains a solid long-term pick for TFSA investors seeking growth and stability.
Couche-Tard stock
If you’re after a solid long-term TFSA stock, then Alimentation Couche-Tard (TSX:ATD) is worth a look. The Laval-based firm runs over 16,700 convenience stores and fuel stations across 29 countries, with brands like Circle K and Couche-Tard. ATD stock currently trades at $70.50 per share, with a $66.8 billion market cap and a dividend yield of 1.1%.
Despite economic challenges and declining consumer spending, Couche-Tard’s revenue rose 6% YoY in the October 2024 quarter to US$17.4 billion, supported by strong merchandise sales. However, its adjusted quarterly net profit fell 11% due to lower U.S. fuel margins.
Nevertheless, the company is expanding aggressively, with a US$1.6 billion recent deal to acquire 270 GetGo locations in the United States. With a proven track record and growth plans, Couche-Tard continues to be a strong buy-and-hold stock for TFSA investors.
Aritzia stock
If you’re looking to diversify your TFSA with a strong Canadian growth stock, Aritzia (TSX:ATZ) could be worth a look. The Vancouver-based fashion retailer, known for its Everyday Luxury brand, currently trades at $67.08 per share with a market cap of $7.7 billion. While Aritzia doesn’t pay a dividend, its strong growth makes it an attractive long-term stock.
The company seems on a roll as its revenue in the November 2024 quarter jumped 11.5% YoY to $728.7 million, while U.S. sales soared 23.6%. On top of that, its adjusted quarterly earnings surged 51%, helped by better pricing and cost efficiencies. With 11 new boutiques opened in the last year and continued e-commerce expansion, Aritzia is a high-potential long-term stock for TFSA investors.
National Bank stock
If you want a TFSA stock that delivers steady growth and solid dividends, National Bank of Canada (TSX:NA) is a strong contender. The Montreal-based bank is a key player in Canadian finance, offering personal and commercial banking, wealth management, and financial markets services. Its stock currently trades at $120.47 per share with a market cap of $47.1 billion and a dividend yield of 3.6%.
In the latest quarter ended in January, National Bank’s net income rose 8% YoY to $997 million, while its adjusted earnings climbed 13% from a year ago to $2.93 per share. The bank’s financial markets and wealth management segments led the charge last quarter, with their net income jumping 35% and 23% YoY, respectively.
Moreover, it’s expanding nationwide with the recent Canadian Western Bank acquisition and maintains strong capital reserves and disciplined cost management, making it a great stock to buy now and hold forever.
