When it comes to investing and putting your hard-earned money to work for you, the Tax-Free Savings Account (TFSA) is one of the most powerful tools Canadian investors have to buy high-quality Canadian stocks and build real, long-term wealth.
Taxes are one of the biggest drags on long-term investment returns, quietly eroding gains year after year, which is why utilizing and maxing out your TFSA is so important for Canadian investors.
Every dollar of capital gains, every dividend payment, and every reinvested return inside a TFSA grows completely tax-free. Over the years and especially decades, that advantage becomes massive because you aren’t just saving a bit on taxes each year. You’re allowing all your returns to compound on themselves, which makes the snowball effect faster and far more powerful.
That’s why long-term investing and using the power of the TFSA go hand in hand. When you buy high-quality Canadian stocks with years of growth potential inside a tax-free investing account, the results can be incredibly powerful. And when you invest in businesses you have confidence in and plan to hold for the long haul, day-to-day market noise matters far less, and fundamentals take over.
That’s why long-term investing in your TFSA is essential. The real strength of the account comes from patience, discipline, and owning businesses that can continue to perform through different economic cycles.
So, with that in mind, if you’ve got cash on the sidelines you’re looking to put to work today, here are four top Canadian stocks to buy and hold forever in your TFSA.
Two top Canadian growth stocks to buy in your TFSA today
High-quality growth stocks are some of the best investments Canadians can buy in their TFSA, especially if you plan to hold these companies for years.
For example, Alimentation Couche-Tard (TSX:ATD) is one of the best examples of a Canadian stock you can buy and confidently hold inside a TFSA for decades. The company operates a massive global network of convenience stores and fuel stations, giving it consistent cash flow and exposure to everyday consumer spending.
What makes Couche-Tard so attractive for long-term investors is its disciplined growth strategy. The company has an exceptional track record of acquiring businesses, improving operations, and steadily expanding margins. And when you combine that strategy with the defensive businesses it operates, Couche-Tard has demonstrated it can continue to generate strong earnings growth over time, even through economic slowdowns.
In addition to Couche-Tard, Aritzia (TSX:ATZ) is another high-quality Canadian growth stock you’ll want to buy and hold in your TFSA. The company has built a powerful brand with a loyal customer base, which has allowed it to expand rapidly while maintaining pricing power and strong margins in a competitive retail environment.
What sets Aritzia apart is its expansion opportunity, particularly in the United States. While the brand is already well established in Canada, its U.S. growth runway remains significant, giving the company plenty of room to scale revenue and earnings over time.
Dividend stocks can provide both growth and stability in your TFSA
While high-quality growth stocks can be some of the biggest gainers in your TFSA, high-quality dividend stocks are also some of the best investments Canadians can buy due to their reliability and consistency, especially since they can earn you a return even when the market is trading sideways or pulling back.
AltaGas (TSX:ALA), for example, is a top Canadian stock you can buy in your TFSA if you’re looking for a mix of income and long-term stability. The company operates a diversified portfolio of regulated utilities and midstream energy infrastructure across Canada and the United States, which helps generate predictable cash flow year after year. Furthermore, it offers a current yield of 3.3%.
In addition to AltaGas, CT REIT (TSX:CRT.UN) is another reliable investment that Canadian investors can buy in their TFSAs. The real estate investment trust owns a large portfolio of retail and mixed-use properties across the country, with the majority of its rent coming from long-term leases with its majority owner, Canadian Tire.
That relationship provides exceptional stability. Canadian Tire is a high-quality tenant with strong credit, and many of CT REIT’s leases include built-in rent escalators, which help grow cash flow over time.
So, if you’re looking for a reliable dividend-growth stock to buy in your TFSA today, CT REIT currently offers a yield of more than 5.6%.
