The Tax-Free Savings Account (TFSA) is one of the most incredible tools available to Canadian investors. Whether you’re saving for your dream home, a luxurious vacation, a comfortable retirement, or aiming to build generational wealth, the TFSA allows your investments to grow completely tax-free. That’s why I’m always on the hunt for stocks that have the potential to significantly outperform the market over time.
Below are three top Canadian stocks I’d be thrilled to own in a TFSA. All three have crushed the market over the past decade — and they still have plenty of room to run for investors with a long-term view.
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1. Brookfield: A global compounder
Brookfield (TSX: BN) has long been a go-to name for serious investors seeking compounding wealth. Over the past 10 years, the stock has delivered total returns of nearly 15.9% annually, transforming a $10,000 investment into about $43,530 — far surpassing the TSX’s roughly 10.2% average annual return.
What drives this outperformance? Brookfield’s edge lies in its global scale, disciplined capital allocation, and its expertise in operating real assets like infrastructure, real estate, and renewable energy. With its asset management business (of which it has 73% ownership interest) having over US$1 trillion in assets under management, it earns consistent, recurring revenue through management fees and performance incentives.
Impressively, Brookfield has delivered over 15% annualized returns to shareholders for more than 30 years — a feat few global companies can match. With strong leadership and a proven playbook, it remains one of the most compelling long-term holds in Canada.
2. FirstService: Quietly dominating its sector
FirstService (TSX: FSV) might not be a household name, but its stock performance is hard to ignore. In the past decade, FSV has delivered a staggering 21.5% annual return, turning a $10,000 investment into approximately $69,870.
The company operates in two key segments: FirstService Residential, which manages residential communities across North America, and FirstService Brands, which provides property services like painting, home inspections, and restoration. Its success stems from a diversified, recurring revenue model and a decentralized structure that empowers local operators while providing them with resources and support.
This approach has fueled both organic growth and strategic acquisitions, allowing FirstService to expand rapidly while maintaining high service quality. Operating in a fragmented industry with significant consolidation opportunities, FirstService is poised to keep growing — and rewarding shareholders.
3. goeasy: A quiet wealth multiplier
Last but certainly not least is goeasy (TSX: GSY), a stock that has truly been in beast mode. Over the past 10 years, it has delivered jaw-dropping annualized returns of 31.6%, turning a $10,000 investment into an incredible $155,230!
goeasy is a leading provider of non-prime lending solutions to Canadians who are often overlooked by traditional banks. With over nine million potential customers, the company operates in a niche market with huge unmet demand.
From 2014 to 2024, goeasy grew revenue and net income at compound annual growth rates of 19% and 30%, respectively. The company maintains high margins and aims to help its customers improve their credit quality.
Despite this growth, the stock trades at a modest price-to-earnings (P/E) ratio of about 12, offering reasonable value and long-term upside potential. Plus, it has increased its dividend for 10 consecutive years, making it even more attractive for TFSA investors.
Investor takeaway
In a TFSA, you want stocks with strong growth potential, durable business models, and long-term compounding power. Brookfield, FirstService, and goeasy all fit that description — and then some. These aren’t just stocks I’d be happy to own — they’re stocks I’d be thrilled to hold for years, watching them grow tax-free over time.
That said, with the market once again hovering near all-time highs and optimism running strong, it’s wise to stay grounded. Market corrections are a natural part of the investing cycle. While timing them is nearly impossible, it’s always wise to have dry powder on the sidelines to deploy opportunistically into quality businesses with proven track records. Especially in a TFSA, this can help you stay on course for long-term wealth creation.
