There’s something comforting about finding a Canadian stock you can tuck away in your Tax-Free Savings Account (TFSA) and not worry about for years. You know the type: steady performance, dependable earnings, and a business model that grows stronger over time. With economic uncertainty, high interest rates, and a mixed global outlook, finding those kinds of Canadian stocks feels more valuable than ever. If you’re looking to build wealth tax-free over the long haul, these three names are strong contenders to buy and hold for life.
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RBC
Let’s start with Royal Bank of Canada (TSX:RY). As Canada’s largest bank by market cap, it’s a fixture in almost every long-term portfolio. The Canadian stock just reported its second-quarter results for 2025, delivering strong performance across core business lines. Net income rose to $4 billion, up 7% year over year. Its capital markets division had a record quarter with revenue of $3.84 billion, while personal and commercial banking continued to drive stable growth.
Even with ongoing economic concerns, RBC’s diversified operations help it weather volatility. Its quarterly dividend coming out as $6.16 per share annually is both generous and well-supported by earnings. Over time, this kind of steady performance has made RBC a classic compounder. For TFSA investors, that kind of consistency is gold.
Shopify
Then there’s Shopify (TSX:SHOP), which has become one of Canada’s most iconic tech stories. It’s also a bit of a roller coaster. But if you can stomach short-term swings, the long-term upside could be worth it. In Q1 2025, Shopify reported revenue of US$1.9 billion, up 23% year over year. Gross merchandise volume also jumped 25% to US$65 billion, showing that businesses continue to rely on its platform.
The Canadian stock is finally turning a profit again, reporting net income of US$273 million, or US$0.21 per share, compared to a net loss in the same quarter last year. The big shift has been Shopify’s ability to manage expenses while expanding its product ecosystem. It’s no longer chasing growth at any cost. For long-term investors, especially those using a TFSA to capture capital gains tax-free, Shopify still offers enormous growth potential.
Element
Finally, consider Element Fleet Management (TSX:EFN). It may not grab headlines like some energy names, but it’s the world’s largest pure-play fleet manager, serving Canada, the U.S., Mexico, Australia and New Zealand. In Q1 2025, Element grew net revenue 5% year-over-year to US$276 million, driven by higher utilization of its service offerings and robust financing income. Adjusted operating income came in at US$151 million, reflecting strong operating leverage in its capital-light model.
Element’s forward dividend yield sits at about 1.5%, with a quarterly payout of $0.13 per share, making it a steady, if modest, income source in a TFSA. Its blend of recurring services revenue (55% of total net revenue) and net financing revenue (40%) delivers resilient cash flow and supports its dividend and buyback programs. While EFN’s yield is lower than some high-yield names, its scalable platform, rate-regulated financing initiatives, and global footprint position it to benefit from the ongoing shift toward outsourced fleet management.
Bottom line
These three Canadian stocks serve different purposes in a TFSA. Royal Bank brings stability and dividends. Shopify offers innovation and high-growth potential. Extendicare adds income and demographic resilience. Combined, these give a strong base for wealth-building in a tax-free account.
There are no guarantees in investing. But if you can find businesses with solid fundamentals, clear long-term growth paths, and reasonable valuations, you’ve already done most of the hard work. For TFSA investors looking to grow their money without constant babysitting, these three stocks offer a well-rounded starting point. Buy them, hold them, and let them do what they do best: grow.
