If you’re aiming to build a robust, lasting investment portfolio, investing in stocks remains one of the most effective strategies. Over time, equities have consistently outperformed most other asset classes, making them powerful investments for generating wealth. Moreover, investing in stocks through a Tax-Free Savings Account (TFSA) can enhance your returns by shielding your capital gains and dividends from taxes.
While markets can be volatile, staying invested in top TSX stocks through the ups and downs can be a smart strategy that pays off in the long run.
Against this background, here are two top Canadian stocks I’d buy and hold for life in a TFSA. They have significant long-term tailwinds and are poised to deliver stellar returns.
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MDA Space
TFSA investors could consider adding MDA Space (TSX:MDA) stock to their portfolios for solid long-term gains. This Canadian space technology firm is experiencing significant growth. Over the past year, its stock has soared more than 206%, and the strong demand trends suggest that it is getting started.
The rally in MDA Space stock is led by its solid financial performance and a growing backlog. In the first quarter, the company saw a 68% jump in revenue. Moreover, MDA ended the quarter with a backlog of approximately $4.8 billion. It represents future revenue that provides solid visibility into the company’s outlook for 2025 and beyond. It’s also a strong indicator of sustained demand in a sector that’s heating up.
MDA’s strength lies in its diverse and reliable space technology offerings, which position the company to benefit from rising demand across multiple end-markets. Its pipeline is healthy, supported by both long-standing programs and new opportunities, giving the company a solid foundation for sustained growth.
The company is investing in next-generation technologies and expanding into high-growth markets, both geographically and sector-wise. Strategic acquisitions are also part of the equation, helping MDA strengthen its competitive edge. Its recent acquisition of SatixFy Communications will enhance MDA’s capabilities in end-to-end satellite systems and solidify its position in the fast-growing digital satellite communications space.
All told, MDA Space is firing on all cylinders and offers strong growth potential in the long term.
5N Plus
5N Plus (TSX:VNP) is one of the most promising long-term stocks to buy and hold in a TFSA. This small-cap Canadian company is a leading provider of specialty semiconductors and targets fast-growing sectors. Thanks to the solid demand for its products, the company has consistently delivered solid financials, which have pushed its share price higher.
So far in 2025, 5N Plus stock has surged more than 34%. Moreover, it delivered a massive 546% return over the past three years. The company holds dominant positions in several niche markets, including space-based solar power, terrestrial renewable energy, healthcare, and advanced imaging technologies.
Further, it is a leading non-Chinese supplier of ultra-high-purity specialty semiconductor materials. These specialty products are essential for a wide range of critical and emerging technologies, presenting substantial growth potential in the years ahead.
With its solid manufacturing capacity, deep client relationships, and focus on high-value sectors, 5N Plus is well-positioned to deliver solid returns.
