The best time to invest in your TFSA (Tax-Free Savings Account) is when there is volatility in the stock market. If you have a long investment horizon, you can pick-up high-quality stocks while they are temporarily drawn down. It offers attractive entry points for investors to add to new positions or average into current positions.
The TFSA is the best registered account to hold stocks for the long term. You don’t want to pay any tax on a large, compounded gain.
Canadians saw their TFSA contribution room increase by $7,000 in 2025. While that may not seem like much, $7,000 compounded at a high rate for years (or decades) can become a substantial sum. If you are wondering where to deploy that cash for long-term gains, here are three Canadian stocks to contemplate.
A top retailer for a TFSA
Aritzia (TSX:ATZ) has delivered good returns for shareholders over the past few years. Its stock is up 48% in the past year and 300% in the past five years.
Aritzia’s brands of “everyday luxury” elegance have resounded with consumers across Canada and the United States. For the first three quarters of 2025, it grew earnings per share by 51%.
The company continues to gain traction in the United States. It has plans to add eight to 10 stores per annum for the next several years. That doesn’t even include international expansion opportunities.
If Aritzia continues to keep its selections stylish and on-trend, we should see strong results from this company ahead. Its stock has pulled back by about 18% in the past couple of months, so it could be an attractive entry point.
A software leader for the logistics industry
Another stock to add to your TFSA if it pulled back further is Descartes Systems Group (TSX:DSG). Up 173% in the past five years, it has been one of Canada’s best tech stories for the past several years.
Descartes has many of the hallmarks you want in a high-quality stock. It has a pristine balance sheet with over $200 million of cash. The company has high recurring revenues and +20% profit margins.
Descartes operates the largest logistics network in the world. It has an excellent assortment of software services that can help transport and logistic providers navigate the challenging trade environment.
The company has strong management, a great balance sheet, and a stable business to continue generating good returns in the coming years.
A top engineering firm for a TFSA
Like the stocks above, WSP Global (TSX:WSP) has delivered great shareholder returns. Its stock is up 222% in the past five years. It has performed very well. However, no one ever talks about this TFSA stock.
WSP has built out an engineering and advisory empire. As it grows in expertise, it gets more projects awarded. Customers increasingly want one major provider that can provide “ground-up” solutions. Trends such as climate change, aging infrastructure, urbanization, and digitization all mean demand for infrastructure should keep rising.
WSP has a very favourable outlook. It is projecting 40% revenue growth, 60% net earnings growth, and 70% free cash flow growth in the next three years. With an attractive foreseeable future, this is a great stock to add to a TFSA on any potential pullback.
