The TFSA (Tax-Free Savings Account) is the smart place for permanent stock holdings. If you think a stock has big potential to multiply your hard-earned savings, you don’t want to pay any tax on those potential gains.
That is the beauty of the TFSA. You can accumulate a substantial amount of wealth and the CRA (Canada Revenue Agency) has no share in it. If I had $12,000 to deploy into Canadian stocks, here are four stocks I would buy in a TFSA on any major pullback.
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A European software consolidator
Despite a volatile stock market in 2025, Topicus.com (TSXV: TOI) stock is actually up 24% this year. Topicus.com has been an attractive way to get technology exposure, but away from the U.S.
Topicus acquires specialized software companies around Europe and abroad. While the company has been delivering strong +25% growth in the past five years, it is also considered defensive. Its software is diversified across country and industry. Likewise, its software is specific, essential, and irreplaceable to its customers.
As a result, its business should perform well, even if there is a global recession. Topicus has the backing of its parent company, Constellation Software. It has ample firepower to deploy if acquisition opportunities arrive during an economic downturn.
A top Canadian technology stock
Another stock I’d buy as a permanent TFSA holding is Descartes Systems Group (TSX: DSG). It operates the top global logistic network in the world. It complements that with several transport/logistics-focused software offerings.
Concerns about global trade have caused this stock to pull back 14%. While that is a concern, goods still need to be moved. Trade partnerships will change, but then supply chains will adapt. Descartes has a suite of software services that can help companies quickly and efficiently adapt their supply chains to these changes.
This company is very well managed and has a strong cash-rich balance sheet, and there could be great opportunities to acquire more businesses into its fold.
A growing healthcare software company
VitalHub (TSX: VHI) is an up-and-coming software company worth holding in a TFSA. This company has been consolidating software in the healthcare industry. Its software focuses on healthcare flow, efficiency, and patient outcomes.
Healthcare systems are incredibly stressed these days. Its software is gaining strong traction from major health systems around the world.
VitalHub has a founder-led management team, a cash-rich balance sheet, and dry powder to keep growing via acquisition. It is a nice buy-and-hold stock for any TFSA portfolio open to a small-cap stock.
A Canadian stock with a global opportunity
WSP Global (TSX: WSP) is another stock to hold long-term for a TFSA. Factors like population growth, urbanization, climate change, and the electrification/digitization of society all play favourably for this company.
WSP is one of the largest advisory, engineering, project management, and design firms in the world. Like the stocks above, it has used a market consolidation strategy to become a leading global player.
The company is projecting strong mid-teens annual growth over the coming three years. As it gets bigger, it gets more opportunities to take on larger, more complex, higher-margin projects. WSP has a large, diverse backlog and the ability to keep growing its capabilities and expertise. This is a great TFSA stock if you have a decades-long time horizon.
