TFSA: 4 Growth Stocks to Buy And Hold Forever

With their compelling growth prospects, these four stocks make excellent additions to a long-term TFSA portfolio.

Key Points
  • Shopify, Celestica, Dollarama, and Savaria offer strong growth potential for TFSA investors, capitalizing on expanding markets and robust business models.
  • These companies are positioned for long-term profitability through innovations, market expansion, and strategic efficiency improvements, making them ideal for tax-free compounding in a TFSA.

A tax-free savings account (TFSA) is an excellent wealth-building vehicle because it allows eligible investors to earn tax-free returns on a specified investment amount, known as the contribution limit. For this year, the Canada Revenue Agency has set the contribution room at $7,000, while the cumulative value for Canadians who were 18 years of age or older in 2009 stands at $109,000.

Against this backdrop, let’s look at four Canadian growth stocks that investors can buy and hold forever in their TFSA.

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Source: Getty Images

Shopify

Shopify (TSX: SHOP) is my top pick, as the continued growth of e-commerce and the shift toward omnichannel retail have expanded its addressable market, creating long-term growth potential. Its ability to help small and mid-sized enterprises navigate increasingly complex global regulatory requirements further enhances its value proposition.

Shopify continues to launch innovative products that improve product discovery, streamline the checkout experience, and enhance post-purchase engagement. It is also expanding its presence in the B2B segment, strengthening offline retail capabilities, and extending its payments ecosystem into new international markets. Additionally, partnerships with leading logistics and fulfillment providers are improving delivery speeds and offering merchants more flexible shipping options.

Combined with ongoing efforts to improve efficiency through automation and deeper AI integration, these initiatives position Shopify to drive profitability and deliver attractive long-term returns, making it an ideal addition to a TFSA.

Celestica

Second on my list is Celestica (TSX: CLS), an electronics manufacturing services provider that supplies critical data centre infrastructure supporting AI, cloud computing, and other advanced technologies in fast-growing end markets. As enterprises and consumer applications increasingly adopt artificial intelligence (AI), hyperscalers are expanding their infrastructure investments, driving strong demand for Celestica’s products and services.

In addition to favourable industry tailwinds, Celestica continues to develop and launch innovative solutions, including advanced networking switches and storage platforms, which should further strengthen its competitive positioning. Reflecting this momentum, management expects revenue and adjusted earnings per share to grow by 26.4% and 52%, respectively, in 2025, followed by 31.1% and 39% growth, respectively, in 2026.

Despite these robust growth prospects, the stock currently trades at just 2.3 times analysts’ consensus sales estimates over the next four quarters, offering an attractive valuation and making Celestica a compelling growth opportunity.

Dollarama

Through its efficient direct sourcing model and well-optimized logistics network, Dollarama (TSX: DOL) offers a broad range of everyday consumer products at highly competitive prices. This value-focused strategy enables the retailer to generate strong same-store sales growth across economic cycles. Building on this momentum, the Montreal-based retailer plans to expand its Canadian store network from 1,684 locations to approximately 2,200 by the end of fiscal 2034, while its Australian footprint could grow from 401 stores to about 700 over the same period.

In addition to organic expansion, Dollarama owns a 60.1% stake in Dollarcity, which operates 683 stores across five Latin American countries. Dollarcity plans to increase its store count to roughly 1,050 by the end of fiscal 2031. Moreover, Dollarama has the option to raise its ownership stake to 70% by the end of next year. As Dollarcity continues to scale, its contribution to Dollarama’s net income is likely to rise meaningfully. Taken together, these multiple growth drivers position Dollarama to deliver superior long-term returns for investors.

Savaria

Another growth stock well suited for a TFSA is Savaria (TSX: SIS), a leading provider of accessibility solutions for individuals with physical challenges. Supported by an aging population and rising incomes, demand for Savaria’s products continues to grow. To capitalize on these favourable trends, the company is investing in innovative product development and expanding its manufacturing capacity to increase market share.

Operationally, Savaria’s “Savaria One” initiative has meaningfully improved efficiency by enhancing factory layouts, optimizing inventory management, and streamlining procurement across its operations. As a result, the company’s adjusted EBITDA margin has risen above its 20% target, reflecting improved profitability. With a strong presence in both Canada and the United States, Savaria is actively reviewing its supply chain and manufacturing network to optimize its North American operations amid geopolitical uncertainty.

Despite these positives, the stock trades at an attractive next-12-month price-to-sales multiple of 1.8 and offers a monthly dividend yield of approximately 2.4%, making Savaria a compelling growth-and-income opportunity.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Celestica and Dollarama. The Motley Fool has a disclosure policy.

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