Whether the stock market is going up or sliding down, your Tax-Free Savings Account (TFSA) should keep working for you. That’s the beauty of long-term investing in a tax-free account — you can grow wealth steadily without worrying about capital gains or dividend taxes along the way. But to achieve that, picking the right stocks is important. Especially in today’s environment of inflation uncertainty and market volatility, TFSA investors need to focus on top Canadian stocks with strong fundamentals, dependable growth, and the ability to thrive across market cycles.
In this article, I’ll highlight two large-cap Canadian stocks that are ideal for TFSA investors looking to buy now and hold for the long term.
Source: Getty Images
Waste Connections stock
The first trustworthy Canadian stock TFSA investors can consider right now is Waste Connections (TSX:WCN), a company that has the potential to deliver results year after year, even amid economic slowdowns.
This Woodbridge-based company collects, transfers, and disposes of non-hazardous waste across Canada and the United States. In addition, it also recycles waste and generates renewable fuels. With nearly nine million customers, it’s one of North America’s largest waste services providers.
After climbing by 19% over the last year, WCN stock is currently trading at $275.39 per share, giving it a market cap of $70.9 billion. At this market price, the stock also offers a modest dividend yield of 0.7%.
In 2024, the company’s total revenue rose 11.2% YoY (year over year) to US$8.9 billion. Despite macroeconomic challenges, Waste Connections’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed by 15% YoY to US$2.9 billion, helped by strong pricing and a record year for new acquisitions. In fact, the company added about US$750 million in annualized revenue through new private deals last year. As a result, its adjusted EBITDA margin also expanded to 32.5% in 2024 from 31.5% in the previous year.
Going forward, Waste Connections expects even more growth in 2025, including a potential EBITDA margin expansion to as high as 33.3%. Its strong balance sheet and steady free cash flow give it plenty of room to keep acquiring, reinvesting, and rewarding long-term shareholders.
Pembina Pipeline stock
Another dependable Canadian stock TFSA investors may want to consider right now is Pembina Pipeline (TSX:PPL), a major player in the energy infrastructure industry. Based in Calgary, it transports oil and natural gas across Western Canada and owns gas processing plants, storage terminals, and pipelines.
PPL stock is up nearly 21% over the past year and currently trades at $57.25 per share, with a market cap of $33.1 billion. It also has an appealing 4.8% annual dividend yield, making it attractive for income-focused investors.
In the latest quarter ended December, Pembina posted record results as its revenue rose to $2.15 billion, while adjusted EBITDA jumped 21% YoY to $1.25 billion. This strong performance was mainly driven by volume growth and new infrastructure deals. Pembina’s long-term growth outlook remains bright with its growing exposure to U.S. markets and long-term contracts, making it an amazing choice for long-term TFSA investors.
