If you use it wisely, your Tax-Free Savings Account (TFSA) has the enormous potential to turn modest contributions into a million-dollar portfolio over time. But to get there, you might want to focus on investing in fundamentally strong Canadian stocks and letting long-term compounding take over.
With no taxes on capital gains, the TFSA is a rare financial gift that can boost your retirement strategy if used well. The challenge, however, is knowing which stocks are truly worth holding for the long term. In this article, I’ll share two must-have Canadian stocks that could help turn your TFSA into a powerful wealth-building machine.
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Celestica stock
A top Canadian stock that might fit into a long-term TFSA strategy is Celestica (TSX:CLS), a tech name that’s been on a serious tear lately. If you haven’t heard of it, this Toronto-based company supports leading global innovators by building hardware platforms, streamlining supply chains, and offering comprehensive manufacturing solutions.
CLS stock has gained an eye-popping 123% over the past year and an incredible 1,090% in just three years. Right now, the stock trades at $156.77 per share, giving the company a market cap of $18.1 billion. It doesn’t pay a dividend, but with this kind of capital gains, that’s easy to overlook.
In the first quarter of 2025, Celestica’s revenue rose 20% YoY (year over year) to hit US$2.7 billion. This jump came mainly from higher demand in its Connectivity & Cloud Solutions segment, especially from artificial intelligence (AI) and cloud-focused customers. More importantly, its hardware platform business nearly doubled its revenue compared to last year.
Similarly, strong execution and momentum in AI-driven infrastructure drove its net profit up by a solid 37% YoY, and helped the company post its best-ever adjusted operating margin of 7.1%.
Recently, Celestica lifted its 2025 outlook and now expects US$10.85 billion in revenue and US$5 per share in adjusted earnings. With AI continuing to reshape the tech landscape, the company is seeing robust demand across cloud and data centre markets.
For TFSA investors hunting long-term growth, Celestica’s strong foothold in AI-related hardware makes it a compelling pick to help build serious wealth over time.
Waste Connections stock
Another Canadian stock that could help turn your TFSA into a million-dollar portfolio over time is Waste Connections (TSX:WCN). The company operates a full-service waste management business across 46 U.S. states and six Canadian provinces, covering everything from garbage and recycling to oilfield waste recovery and rail transport.
WCN stock has surged an impressive 468% in the last decade and has gained nearly 20% over the past year alone. With this, it now trades at $272.74 per share with a market value of $70.5 billion.
In the latest quarter ended in March 2025, the company’s revenue rose 7.5% YoY to US$2.2 billion with the help of solid waste price growth and strong acquisition activity. Meanwhile, its net profit increased to US$241.5 million, even after dealing with weaker volumes due to bad weather.
Moreover, Waste Connections has added over US$125 million in new annualized revenue year to date through acquisitions. With steady cash flows and room for expansion, this top Canadian stock has the potential to deliver solid long-term TFSA growth.
