TFSA: 3 Canadian Stocks to Buy and Hold for Life

If you want a dividend stock portfolio that you can sit back and simply watch grow over time, these are some to consider.

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Some Canadian stocks are just built to last. Through market ups, downs, and the occasional panic-inducing headline, certain companies manage to keep growing, keep paying dividends, and keep making investors glad they never sold. For a Tax-Free Savings Account (TFSA) investor who wants to set it and forget it, three names stand out right now. Those are Bank of Montreal (TSX:BMO), Enbridge (TSX:ENB), and Agnico Eagle Mines (TSX:AEM). These operate in very different corners of the economy, but all have a track record of rewarding patience.

BMO

Let’s start with Bank of Montreal. BMO has been around since 1817, so it’s seen more market drama than most investors could stomach in a lifetime. Today, it’s the fourth-largest bank in Canada, with a growing presence in the U.S.

In its latest quarter, the bank reported $2.05 billion in adjusted net income, up slightly from last year, and lifted its dividend to $1.63 per share. That works out to an annual yield of around 4.2%, well above what you’ll get on most savings accounts.

BMO’s capital levels remain strong, with a common equity tier-one ratio of 13.5%, which means it has a good cushion to weather tougher times. The main risk here is the economic cycle, as banks can face higher loan losses when economies slow, but BMO’s history suggests it adapts and bounces back. For long-term TFSA investors, the combination of steady income and growth potential is hard to ignore.

Enbridge

Enbridge brings a different kind of stability. This energy infrastructure giant is an essential piece of North America’s oil and gas network, moving about 30% of the continent’s crude oil and 20% of its natural gas. It’s also quietly growing in renewable energy.

In the second quarter of 2025, Enbridge delivered record earnings before interest, taxes, depreciation, and amortization (EBITDA) of $4.6 billion, a 7% increase from last year, and reaffirmed full-year guidance. The dividend yield is a hefty 5.8%, supported by predictable cash flows from long-term contracts.

It’s also sanctioning new projects like the $1.2 billion Clear Fork Solar development and expanding gas storage in British Columbia, which could help future earnings. The debt load is high, a common trait in capital-intensive infrastructure, but Enbridge’s stable cash flow and disciplined capital allocation give it breathing room. For TFSA investors, the high yield and steady growth make it a reliable income anchor.

Agnico

Then there’s Agnico Eagle Mines, which gives this trio some exposure to a different asset class entirely: gold. In times of inflation or uncertainty, gold can be a useful portfolio diversifier, and Agnico is one of the best-run gold miners in the world.

The second quarter of 2025 was a blockbuster, with record free cash flow of $1.3 billion, more than double the prior quarter, and net income topping $1 billion. Production costs were well controlled at $933 per ounce, below the midpoint of guidance, and the balance sheet swung to a net cash position of nearly $1 billion.

Agnico also returned $300 million to shareholders through dividends and buybacks during the quarter. Risks here include gold price volatility and the capital intensity of mining projects, but Agnico’s diverse portfolio of high-quality mines gives it more stability than most peers.

Bottom line

Holding all three in a TFSA offers balance. Each has a strong dividend, solid long-term growth plans, and the kind of staying power that can make compounding work for decades. The mix means you’re not betting on one sector’s fortunes, and you have assets that can shine in different economic conditions. And right now, $5,000 invested in each could bring in about $553 annually from dividends alone!

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
BMO$155.5632$6.52$208.64Quarterly$4,977.92
ENB$65.4676$3.77$286.52Quarterly$4,974.96
AEM$186.5726$2.22$57.72Quarterly$4,851.00

No dividend stock is risk-free, and even the strongest companies can hit bumps. But when you combine a history of resilience with current financial strength and clear plans for future growth, you get the kind of holdings that make TFSA investors sleep a little easier. For those looking to buy and hold for life, this trio is a compelling place to start.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

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