2 Top Canadian Stocks I’d Happily Buy and Hold Forever (and Ever)

Two TSX lifers to tuck in your TFSA: a logistics compounding machine and a dependable power producer.

Key Points
  • TFI International grows by acquiring and optimizing trucking and logistics businesses, generating strong cash flow, buybacks, and a steadily rising dividend.
  • Capital Power owns contracted power assets, shifting to cleaner generation, delivering stable cash flow and a sizable, growing dividend.
  • A TFSA lets these long-term winners compound tax-free, boosting income and returns over decades.

When you’re seeking out a top Canadian stock, the best place to start is with a Tax-Free Savings Account (TFSA). It’s the ideal place to invest for lifelong holds because it lets your best stocks compound without taxes ever getting in the way.

When you keep long-term winners in a TFSA, every dividend, every bit of growth, and every surge in share price stays yours forever, with no capital-gains bill waiting down the road. That means the earlier you fill it with stocks you plan to hold for decades, the more powerful the compounding becomes, since none of your gains get dragged down by yearly taxation. With that in mind, let’s look at two I’d pick up today, and hold forever and ever.

Hand Protecting Senior Couple

Source: Getty Images

TFII

TFI International (TSX: TFII) is compelling right out the gate. Its strength and the consistency of its business model is hard to find elsewhere. The Canadian stock acquires trucking, logistics, and last-mile delivery companies; trims the fat, boosts efficiency, and then uses the stronger cash flow to fuel the next smart acquisition.

Over the years, this discipline has transformed TFII from a regional trucking operator into a North American logistics powerhouse with operations across the U.S., Canada, and Mexico. Its revenue is diversified across multiple segments from package and courier to LTL, truckload, and logistics, thus offering resilience through every market cycle. Even when the economy slows, people and businesses still need goods moved, and TFII remains profitable because it has the scale, profitability discipline, and pricing power to protect margins.

Long term, TFII’s biggest tailwind is that supply chains only grow more complex, not less. Companies are re-shoring manufacturing, increasing e-commerce shipments, and streamlining transportation networks. These are all trends that benefit logistics consolidators with scale. TFII also stands out for exceptional capital allocation. Management consistently buys undervalued companies, integrates them efficiently, and then aggressively buys back its own shares when the stock dips. Its dividend, while modest, rises steadily and is backed by strong, recurring cash flow.

With decades of growth momentum, a proven acquisition engine, and an essential role in North American supply chains, TFII offers exactly what lifelong investors want. That’s long-term compounding, stability, and a business model that’s built to thrive through every economic cycle.

CPX

Capital Power (TSX: CPX) is another Canadian stock long-term investors can hold for life. It sits at the heart of an industry that never goes out of style: electricity. No matter what the economy does, people still heat their homes, charge their cars, and run their businesses.

CPX has built a portfolio of power assets across North America that produce steady, predictable cash flow, and it continues to shift toward cleaner, lower-emission generation to stay competitive for decades. Its long-term contracts lock in revenue, which keeps earnings stable even when energy markets get choppy.

What really strengthens CPX as a permanent portfolio holding looking ahead is its combination of growth potential and dependable income. The Canadian stock continues to expand through new renewable projects, strategic acquisitions, and upgrades to existing facilities, all of which help drive future earnings. Its dividend is substantial, regularly growing, and backed by real cash flow, not financial engineering. This makes it an attractive source of steady income over time.

Risks like interest rates and regulatory changes are real, but CPX has repeatedly shown it can adapt and operate profitably through shifting market conditions. For investors who want a Canadian stock that offers stability today, growth tomorrow, and income every year in between, Capital Power fits the bill as a long-term buy-and-hold gem on the TSX.

Bottom line

The TFSA is the perfect place to put your long-term holdings, and these two Canadian stocks are some of the best options out there. Even with some lower investments, you can bring in dividends that can compound over years. In fact, here’s what $7,000 would bring in on the TSX today.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL ANNUAL PAYOUTFREQUENCYTOTAL INVESTMENT
TFII$119.2158$2.62$151.96Quarterly$6,914.18
CPX$60.34116$2.69$312.04Quarterly$6,999.44

Together, you can add these dividends to new shares of each stock, piling up earnings again and again for lifelong income that stands the tests of time.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Capital Power and TFI International. The Motley Fool has a disclosure policy.

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