While it’s a smart decision to invest using your Tax-Free Savings Account (TFSA) to multiply your savings, it’s just as important to choose the right kinds of stocks — especially if your goal is to grow wealth steadily over time. That simply means focusing on fundamentally strong, large-cap stocks with resilient business models and consistent performance.
In this article, I’ll highlight three Canadian stocks that are ideal for buy-and-hold investors looking to maximize their TFSA over the long run.
Suncor stock
First, let’s begin with Suncor Energy (TSX:SU), the Calgary-based top integrated oil and gas firm that you may want to add to your TFSA portfolio. After climbing by 10% over the last year, SU stock currently trades at $54.97 per share with a market cap of $68 billion. The stock also comes with a solid 4.1% annualized dividend yield, paid every quarter.
Although Suncor’s adjusted net profit slightly fell to $1.57 billion in the fourth quarter of 2024, it still reported record upstream production of 875,000 barrels per day as its refining utilization hit 104%. The company’s bottom line was mainly affected by lower product realizations and higher royalties but offset by increased sales volumes.
Interestingly, Suncor recently hit its net debt target, triggering a shift to returning 100% of excess funds to shareholders. Plus, with new infrastructure like the cogeneration facility and ongoing investments in lower-emissions power, this dividend-paying stock could outperform the broader market in the long run.
Royal Bank stock
Now, take a look at another long-term gem for your TFSA: Royal Bank of Canada (TSX:RY). Based in Toronto, this banking heavyweight serves over 19 million clients with a wide range of services. After climbing by 20.4% over the last year, RY stock currently trades at $166.65 per share with a market cap of $235 billion and offers a 3.6% annualized dividend yield.
In the latest quarter ended January 2025, Royal Bank posted a record net profit of $5.1 billion, reflecting a 43% increase from a year ago, while its adjusted earnings hit $3.62 per share. This growth came from all of the bank’s business lines, boosted mainly by its recent HSBC Canada acquisition, higher lending volumes, and strong fee-based revenue.
Royal Bank is investing heavily in technology, expanding digital services, and maintaining a strong capital base. These moves could drive stable, long-term returns for patient TFSA investors.
Fortis stock
Fortis (TSX:FTS) is another solid pick to round out your TFSA portfolio, especially if you’re after stability and steady returns. Based in St. John’s, it runs a massive network of regulated electric and gas utilities across Canada, the U.S., and the Caribbean. FTS stock currently trades at $63.44 per share with a 6.2% year-to-date gain, giving it a market cap of $31.7 billion. At this market price, it also offers a steady annualized dividend yield of 3.8%.
In 2024, Fortis reported adjusted net profit rose nearly 9% YoY to $1.63 billion due mainly to steady rate base growth and new customer rates across its U.S. and Canadian utility businesses.
Moreover, Fortis continues to focus on long-term expansion, with its rate base expected to grow 6.5% annually through 2029, making it a reliable compounder for long-term TFSA investors.
