Investing in stocks through a Tax-Free Savings Account (TFSA) is one of the most effective ways to build long-term wealth. Any returns you earn inside a TFSA are completely tax-free. Over time, this advantage can significantly enhance your returns. The key is to focus on high-quality TSX stocks with solid growth prospects. Moreover, diversifying your TFSA portfolio can help reduce overall portfolio risk.
So, if you have $3,000 available to contribute to your TFSA, here are three reliable Canadian stocks for long-term wealth building.
Source: Getty Images
Dollarama stock
Dollarama (TSX: DOL) is a reliable Canadian stock for long-term wealth building. The discount retailer has consistently outperformed the broader market and delivered significant capital gains. Dollarama stock has compounded at approximately 30.7% annually over the last five years, resulting in capital gains of roughly 282%.
Further, Dollarama has shown commitment to rewarding shareholders. It has raised its dividend 14 times since 2011. These increases reflect the company’s solid earnings base and a resilient business.
Dollarama’s focus on value pricing and broad product assortment continues to attract customers across economic cycles. Further, the retailer’s expanding store footprint in Canada, coupled with international growth initiatives, supports continued revenue expansion. Partnerships with third-party delivery platforms also extend Dollarama’s reach, allowing it to serve customers beyond its physical locations.
In addition, Dollarama’s strong supplier relationships and a balanced mix of private-label and branded merchandise augur well for earnings growth. This structure helps protect margins while giving the company flexibility in pricing and product selection. The recent acquisition of Australia’s The Reject Shop adds another growth avenue for the company and expands its international base.
Overall, Dollarama stock offers growth, income, and stability, making it a perfect TFSA stock for wealth building.
Shopify stock
Shopify (TSX: SHOP) is a reliable TSX stock for long-term wealth building. While Shopify stock has appreciated significantly over the past decade, its growth story is far from over. Even after a strong run over the past decade, the company still stands to benefit as retail shifts further toward multichannel selling. Businesses increasingly need seamless ways to sell online, in stores, and across multiple platforms, and Shopify’s unified commerce ecosystem will enable it to capitalize on the demand.
Shopify continues to attract merchants of all sizes, including large global brands. Further, Ongoing product innovation continues to strengthen customer loyalty.
For Shopify, growth is also becoming more diversified. Payments remain a key driver, while offline retail and business-to-business solutions are expanding rapidly, highlighting Shopify’s ability to scale beyond its core offerings. Supported by digital adoption, AI integration, and a sharper focus on efficiency, Shopify appears well-positioned to compound value and generate attractive long-term returns for investors.
Bird Construction
Bird Construction (TSX: BDT) is a solid long-term TSX stock to add to your TFSA. The Canadian construction and maintenance company is benefiting from an expanding national footprint and exposure to high-demand areas such as civil infrastructure, industrial work, and defence. These sectors offer resilient, multi-year demand that supports consistent earnings growth.
While macroeconomic headwinds have affected the broader construction landscape, Bird’s core operating momentum remains intact. Its combined backlog exceeding $10 billion provides strong revenue visibility and will support future growth. Although delayed project starts and softer industrial activity have weighed on near-term results, these pressures appear temporary. Further, Bird’s solid balance sheet further enhances its ability to navigate uncertainty and pursue strategic acquisitions.
The recent acquisition of Fraser River Pile & Dredge expands Bird’s capabilities into marine construction, diversifies its revenue base, and positions it well to capitalize on long-term infrastructure investment trends across Canada.
Overall, Bird Construction’s exposure to resilient end markets, strong backlog, and strategic acquisitions positions it well to deliver notable returns in the long run.
