A Tax-Free Savings Account (TFSA) is an excellent investment vehicle that allows investors to earn tax-free returns within a prescribed contribution limit. For this year, the Canada Revenue Agency (CRA) has set the annual TFSA limit at $7,000, while the cumulative contribution room for individuals aged 18 or older in 2009 stands at $109,000.
However, investors must exercise caution when investing through a TFSA. A decline in stock prices followed by selling at a loss can permanently reduce available contribution room, leading to capital erosion and limiting future tax-free growth potential. Therefore, investors should look to buy high-quality, resilient businesses and hold on to them over the long term.
Against this backdrop, here are four Canadian stocks well suited for a buy-and-hold-forever strategy in a TFSA.
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Fortis
Fortis (TSX:FTS) operates nine regulated utility businesses, serving about 3.5 million customers across the United States, Canada, and the Caribbean. Its focus on low-risk transmission and distribution assets enables the utility to generate stable and predictable financial results across market cycles.
This consistency has helped Fortis deliver an average annual total shareholder return of 9.6% over the past 20 years. Additionally, it has increased its dividend for 52 consecutive years and currently offers a 3.51% dividend yield.
Looking ahead, Fortis plans to invest $28.8 billion over five years, which could grow its rate base at a 7% compound annual rate to $57.9 billion by 2030. These investments should support steady earnings growth and dividend increases of 4–6% annually through 2030, making Fortis a compelling long-term TFSA investment.
Waste Connections
Another stock that could be an excellent addition to a TFSA is Waste Connections (TSX:WCN), a leading non-hazardous solid waste management company. It operates primarily in exclusive and secondary markets, which reduces competitive pressures and supports higher operating margins.
WCN has expanded steadily through a mix of organic growth and disciplined acquisitions, driving strong financial performance and long-term share price appreciation. Over the past decade, the company has delivered total returns of more than 875%, representing an impressive annualized return of 12.1%.
Looking ahead, management plans to continue its active acquisition strategy, supported by a strong balance sheet and healthy cash flows. Its acquisition pipeline includes private companies in the United States and Canada that could contribute up to $5 billion in annualized revenue. Additionally, investments in technologies such as robotics and optical sorting systems are improving operational efficiency.
Given its resilient business model and strong growth outlook, WCN remains a compelling long-term TFSA investment.
Dollarama
Dollarama (TSX:DOL) is a leading discount retailer operating 1,684 stores in Canada and 401 stores in Australia. Its efficient direct-sourcing model and strong logistics network allow the company to keep costs low and offer a wide range of consumer products at attractive price points, supporting steady sales across different economic environments.
The company also has robust expansion plans, aiming to increase its Canadian store count to 2,200 and its Australian footprint to 700 locations by fiscal 2034. In addition, Dollarama owns a 60.1% stake in Dollarcity, which operates 683 stores across five Latin American countries. Dollarcity continues to pursue aggressive expansion and expects to grow its store count to 1,050 by fiscal 2034. Dollarama also has the option to raise its ownership stake to 70% by the end of next year.
Supported by multiple growth drivers, Dollarama is well-positioned to deliver sustained financial performance and long-term share price growth.
Enbridge
Enbridge (TSX:ENB) operates more than 200 revenue-generating assets and derives 98% of its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) from regulated operations and long-term, take-or-pay contracts. With minimal exposure to commodity price fluctuations and about 80% of EBITDA indexed to inflation, the company generates stable and predictable cash flows. This consistency has enabled Enbridge to raise its dividend for 31 consecutive years, and it currently offers an attractive dividend yield of 5.95%.
Looking ahead, the Calgary-based energy infrastructure giant is expanding its rate base through $37 billion in secured capital projects, with annual investments of roughly $10 billion. Alongside these growth initiatives, management expects to return $40–$45 billion to shareholders over the next five years, supporting the safety and sustainability of its dividends and making Enbridge a substantial long-term TFSA investment.
