Building a Tax-Free Savings Account (TFSA) that can compound your hard-earned capital for decades is not as difficult as it may seem. All it really takes is the patience and discipline to find high-quality Canadian stocks that you can buy and hold for the long haul. And as we move closer to 2026, now is the perfect time for investors to start thinking about the Canadian stocks that deserve a spot in their TFSA for the year ahead.
The TFSA is easily one of the most powerful investing tools available to Canadians, giving you the ability to earn tax-free growth on everything from dividends to capital gains. Because of that, the stocks you choose to buy and hold in your TFSA become incredibly important.
However, just as buying high-quality stocks and holding them is the best strategy for investing in general, it is also the most effective way to use your TFSA.
When you own reliable companies that consistently grow their operations, the steady increase in their share prices, along with the dividends you receive and reinvest, can quietly build significant wealth for you over time, especially if you aren’t paying any taxes on those earnings.
So, if you’re already looking at what Canadian stocks to consider buying in your TFSA for 2026, here are three top picks to add to your watchlist.
Two ultra-cheap stocks that could see a significant rally in 2026
It’s essential to ensure the stocks you’re buying in your TFSA are the highest-quality businesses on the market. You don’t want to sacrifice quality just to try and buy stocks that are trading cheaply.
However, when you can buy a top-notch business for your TFSA while it’s undervalued, the rebound back to fair value plus the long-term growth that follows can create massive returns over time.
That’s why two of the best Canadian stocks to buy in your TFSA for 2026 are WELL Health Technologies (TSX:WELL) and Canadian Apartment Properties REIT (TSX:CAR.UN).
It’s been a tough year for WELL Health; however, the stock continues to have tremendous growth potential, has already proven it can grow rapidly and consistently, and is trading dirt-cheap in this environment.
WELL has a tonne of potential as it looks to sell off some of its non-core technology assets and concentrate on expanding its national network of outpatient clinics.
It has already grown into the largest owner and operator of medical outpatient clinics in Canada, and as it continues to acquire new locations and expand its footprint, its operational expertise keeps improving. At the same time, the company continues to see cost efficiencies as it scales, strengthening both its margins and long-term growth outlook.
And right now, with WELL shares trading at roughly $3.70, the stock is trading at a forward price-to-earnings (P/E) ratio of just 10.7 times, incredibly cheap for a high-quality growth stock.
Meanwhile, Canadian Apartment Properties REIT (CAPREIT) also has a tonne of potential to rally in 2026, especially as interest rates continue to decline.
And right now, with CAPREIT trading at essentially the bottom of its 52-week range, it’s not just cheap; it’s a no-brainer.
Currently, CAPREIT trades at a forward price-to-funds-from-operations (P/FFO) ratio of just 14.5 times, well below its five-year average of 19.5 times.
So, if you’re looking for Canadian stocks to add to your TFSA in 2026, these two are both some of the highest-quality companies you can buy at a discount today.
One of the best Canadian stocks to own forever in your TFSA
In addition to those two undervalued picks, another top Canadian stock you’ll want to own in your TFSA for 2026 and beyond is Brookfield Infrastructure Partners (TSX:BIP.UN).
Brookfield is an ideal long-term investment because it owns and operates reliable defensive assets all over the world. However, at the same time, it operates like a growth stock, consistently disposing of its more mature assets and recycling that capital into new high-potential opportunities.
Plus, in addition to the resiliency and the long-term capital gains potential that it offers, Brookfield also pays a consistently growing dividend that currently yields roughly 4.8%.
So, if you’re looking for a top Canadian stock to buy for your TFSA in 2026 and hold for years to come, Brookfield is certainly one of the best choices you have.
