It can be so difficult to wade through all the literal thousands of companies on the TSX when you’re looking for a solid buy in a Tax-Free Savings Account (TFSA). All we want are no-brainer buys. TFSA stocks that will continue to rise in share price, which will allow us to sleep better, while collecting dividends. Is that too much to ask?
Well, it might be, but luckily I’ve done some of the heavy lifting for you. So today, let’s look at why these two TFSA stocks are some of the best no-brainer buys out there.
GSY
goeasy (TSX:GSY) might be one of the smartest, most overlooked opportunities for long-term TFSA investors right now. With a proven business model, decades of consistent growth, and a dividend that keeps climbing, goeasy offers the kind of balance between income and capital appreciation that can turn $7,000 into serious wealth over time, completely tax-free.
goeasy operates as a non-bank lender specializing in consumer credit, offering personal loans and financing to Canadians who don’t always qualify through traditional banks. Over the past decade, the company has grown its loan book from just over $300 million to more than $3.5 billion, while keeping charge-offs stable. The stock’s performance has been equally impressive. Over the last 10 years, goeasy has delivered a total return of more than 1,000%, outpacing even some of Canada’s largest banks.
Yet despite that run, the company still looks attractively priced. Shares trade around 10 times earnings. Its most recent results once again beat expectations, and now the TFSA stock reaffirmed its long-term growth targets. Add in a dividend yield of 3.5% that has increased every year for a decade, and it’s a TFSA stock that fits perfectly into a long-term passive income portfolio.
H
Hydro One (TSX:H) is one of those rare TFSA stocks that combines safety, steady income, and long-term growth. It operates the essential infrastructure that keeps the province’s lights on, with over 30,000 kilometres of transmission lines and 125,000 kilometres of distribution lines serving millions of customers. It’s a regulated utility, meaning its revenues are set through long-term government-approved rate frameworks.
Furthermore, Hydro One has delivered steady growth in both metrics since going public in 2015. Its most recent quarter showed continued earnings stability and rate-base expansion, with net income increasing modestly and management reaffirming its focus on efficiency and reliability improvements. Plus, utilities like this tend to outperform when markets get choppy because their earnings don’t depend on consumer spending or global demand. Even during recessions, Hydro One’s cash flow remains stable, and its share price often holds steady or even climbs as investors flock to safety.
As for dividends, Hydro One offers a yield of roughly 2.5%, with a strong record of annual increases. Management has raised the dividend every year since its IPO, and the current payout ratio sits around 61%, well within sustainable levels for a utility. That means investors can count on consistent, gradually rising income without worrying about cuts. Inside a TFSA, those dividend payments are completely tax-free, giving you the full benefit of compounding without the drag of taxes.
Bottom line
For TFSA investors looking for peace of mind, these are the kind of TFSA stocks you can hold indefinitely without worrying about market timing. So if you’re considering companies to tuck away in your TFSA for years to come, these are the perfect stocks to consider.
