TFSA: 3 Canadian Stocks to Buy and Hold for Life

The TFSA is the perfect place to create income for years, and these three are the best Canadian stocks to consider.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published May 8, 2025 4:20 pm EDT

When thinking about building a Tax-Free Savings Account (TFSA) that can grow quietly in the background for years, it’s all about choosing quality over flash. You want Canadian stocks that can weather market dips, keep paying dividends, and continue expanding businesses without drama. Some companies just have that steady-as-she-goes vibe, making these stocks ideal to buy once and hold forever. If I were picking three Canadian stocks to tuck away in a TFSA and forget about, I’d go with Toromont Industries (TSX:TIH), Canadian National Railway (TSX:CNR), and Manulife Financial (TSX:MFC).

TIH

Toromont Industries isn’t exactly a household name, but it plays a major role behind the scenes. The Canadian stock is one of the largest Caterpillar equipment dealers in Canada and is also involved in industrial refrigeration through its CIMCO division. In other words, it keeps the construction, mining, and food storage industries running smoothly.

In the first quarter of 2025, Toromont reported revenue of $1.09 billion, up 7% from the year before. Equipment sales jumped 17%, and rentals grew 11%. While net income dipped to $74.4 million, down 11% year over year, that was mostly due to margin pressures and product mix, not demand. Earnings per share (EPS) came in at $0.92, which is still solid for a Canadian stock built on consistent, long-term performance.

Where Toromont really shines is in its dividend history. The Canadian stock has paid a dividend for 56 straight years. That’s longer than most Canadians have been investing. Its latest quarterly payout was $0.52 per share, up from $0.48 the year before. That kind of dependability is hard to find, and when you hold a stock like this in a TFSA, every dividend dollar is yours to keep, tax-free.

CNR

Then there’s Canadian National Railway, or CNR for short. It’s not just any railway, this Canadian stock is a backbone of Canadian trade. It connects the Pacific and Atlantic coasts and runs deep into the U.S., linking ports, farms, and factories all along the way. In a world where supply chains are still adjusting to post-pandemic shifts, owning CNR is like owning a piece of essential infrastructure.

CNR’s first quarter of 2025 was right on track. Revenue climbed to $4.4 billion, up 4% year over year. Operating income rose 4% as well, hitting $1.61 billion. Diluted EPS increased 8% to $1.85. CNR also improved its operating ratio to 63.4%, which basically means it’s getting more efficient. It generated $626 million in free cash flow and plans to invest $3.4 billion this year to keep its network running smoothly.

The Canadian stock’s goal is to grow adjusted EPS by 10% to 15% in 2025. It has a long history of increasing its dividend, and right now, it pays about $0.845 per share quarterly. That might not seem huge, but it adds up nicely over time, especially in a TFSA where those payouts can compound without any tax drag.

MFC

The final pick for a buy-and-hold TFSA portfolio is Manulife Financial. If you’ve ever had life insurance or a retirement savings plan, chances are you’ve come across Manulife. It’s one of the biggest insurance and wealth management firms in the country, with a strong presence across Asia and the U.S. as well.

Manulife is expected to report its first-quarter 2025 results shortly, with analysts forecasting EPS around $0.98. In the last quarter of 2024, it beat expectations with $0.74 per share. It also pays a healthy dividend of $1.76 per share, which is good for a yield near 4.08% at recent share prices. That kind of income is a TFSA dream, reliable, tax-free, and growing over time.

What makes Manulife appealing is its mix of stable insurance operations and growing asset management business. It’s well-diversified geographically and across business lines, which helps reduce risk. Plus, the Canadian stock continues to buy back shares and return capital to shareholders, which is always a nice bonus.

Bottom line

Together, these three companies offer a mix of industrial, infrastructure, and financial exposure. All three have strong balance sheets, stable earnings, and a history of rewarding shareholders. These aren’t hype-driven tech plays or risky growth bets. They’re the kind of Canadian stocks you can feel good about holding for the next 10, 20, or even 30 years.