Not every stock is worth holding through market cycles, rate cuts, and economic slowdowns. Many growth-oriented trending stocks shine briefly, then fade when business conditions turn less friendly. That’s why a forever stock is different, as it has the ability to earn its place by staying relevant in both good times and tougher ones.
For Tax-Free Savings Account (TFSA) investors, that reliability could make a big difference because long-term compounding works best when the business itself keeps delivering. In Canada, consumer spending habits have been under pressure lately, but one Canadian retailer continues to post strong sales and expand margins at the same time. That tells you something important about the demand for its products and its pricing power.
In this article, I want to focus on this top Canadian stock that combines defensive qualities with consistent financial growth and has rewarded patient investors for years – making it a strong pick to hold forever inside a TFSA.
A top Canadian stock TFSA investors can hold forever
That great combination of defensive qualities and stable growth can be found in Dollarama (TSX:DOL), a TFSA-friendly stock that has repeatedly proven its ability to perform across very different economic environments. To understand why this stock looks so attractive for TFSA investors, let’s start by quickly looking at what the company actually does.
In short, Dollarama operates Canada’s largest discount retail chain, offering everyday consumables, general merchandise, and seasonal items at fixed price points. Currently, it runs more than 1,600 stores across the country and also has exposure to international markets through Dollarcity in Latin America and its recent expansion into Australia.
Right now, Dollarama stock trades around $197 per share with a market cap of about $54 billion. While its annualized dividend yield of 0.2% may not look appealing, the real attraction for long-term TFSA investors has been its consistent capital appreciation backed by a highly repeatable business model. Notably, the stock has risen 41% so far in 2025 – marking its 14th year of double-digit gains out of the last 15 years.
Strong performance even in a pressured environment
Despite macroeconomic uncertainties and cautious consumer spending, Dollarama’s business model is continuing to show strength. The reason is simple. When budgets tighten, shoppers tend to prioritize value, leading to higher sales for discount retailers like Dollarama without relying on heavy discounting or promotions.
In the third quarter of its fiscal year 2026 (three months ended in October 2025), Dollarama’s revenue climbed 22.2% YoY (year-over-year) to $1.9 billion, driven by a 6% rise in its comparable store sales in Canada and a growing store base. More importantly, its adjusted quarterly earnings jumped 19.4% YoY to $1.17 per share, reflecting higher operating profit and disciplined cost control.
During the quarter, the Canadian discount retailer also used its cash flow to repurchase over $480 million worth of shares, reflecting its continued focus on shareholder returns.
Why this TFSA-friendly stock makes sense for the long run
Going forward, Dollarama plans to grow its Canadian store count toward a long-term target of 2,200 locations, backed by efficient logistics and short store payback periods. Meanwhile, its stake in Dollarcity continues to pay off, as Dollarcity scales across Latin America, with store growth and earnings contributions rising at a healthy pace.
These strong fundamentals, combined with its consistent free cash flow, a disciplined balance sheet, and a business that benefits from value-focused consumer behaviour make Dollarama one of the safest stocks to hold forever for TFSA investors.
