It’s no secret how powerful the Tax-Free Savings Account (TFSA) can be for long-term investors. However, the TFSA works best when you ensure that the Canadian stocks you buy for it are the best of the best.
When you buy high-quality Canadian stocks inside a TFSA and hold them for years, or even decades, every dollar of growth and income compounds tax-free. That’s a massive opportunity, especially when it’s paired with businesses that have reliable and consistent operations, strong balance sheets, and the ability to grow through different economic environments.
That doesn’t mean every stock in a TFSA needs to be well-established and pay a dividend. In fact, while many high-quality businesses do return cash to investors, some of the best TFSA holdings are companies that can reinvest capital at high returns, expand their businesses over time, and steadily increase shareholder value.
So, if you’re looking for high-quality Canadian stocks to buy in your TFSA and hold for years, here are some of the best of the best.
One of the best growth stocks in Canada
If you’re looking for high-quality growth stocks to buy now, Aritzia (TSX:ATZ) is undoubtedly a top pick
Aritzia is one of the best Canadian growth stocks you can buy and hold for the long haul due to its premium apparel brand, loyal customer base, and strong pricing power. That strategy has allowed it to grow revenue and earnings at an impressive pace over time.
What makes Aritzia so compelling is that its growth isn’t dependent on constant discounting or chasing trends. Instead, it focuses on brand strength, vertical integration, and expanding its footprint, particularly in the United States.
It has proven for years that its products resonate with consumers, and its e-commerce platform plays a much bigger role than just driving online sales. Not only does it help Aritzia grow in regions where it has limited physical locations, but it also gives the company valuable data on where demand is strongest, helping guide where it opens new brick-and-mortar stores next.
So, if you’re looking for a high-potential Canadian growth stock to buy in your TFSA, there’s no question Aritzia is a top pick.
Defensive growth stocks are some of the best investments Canadians can buy in their TFSA
In addition to a more volatile growth stock like Aritzia, three more of the best Canadian stocks to buy in your TFSA today are Brookfield Infrastructure Partners (TSX:BIP.UN), Jamieson Wellness (TSX:JWEL), and GFL Environmental (TSX:GFL).
These companies are some of the best to buy and hold for years in your TFSA because they offer attractive long-term growth potential, but they also operate incredibly reliable and defensive businesses.
Brookfield Infrastructure, for example, is one of the most reliable long-term investments you can own in a TFSA. It owns essential infrastructure assets around the world, including utilities, transport networks, energy infrastructure, and data-related assets that people and businesses rely on every day.
Meanwhile, Jamieson Wellness is one of the best Canadian stocks to buy in a TFSA because it’s a consumer health company that’s a leader in the vitamins, minerals, and supplements market. That makes it incredibly defensive and a stock with a tonne of long-term potential as it continues benefiting from long-term trends toward preventative healthcare and wellness.
Furthermore, Jamieson has incredibly strong brand recognition, a global distribution network, and a disciplined approach to growth, which is why it’s one of the best Canadian stocks you can buy in your TFSA.
The reason GFL Environmental is such a reliable investment is that it owns essential, hard-to-replicate assets that provide waste management and environmental services across Canada and the United States. These are operations that remain in demand regardless of economic conditions.
So, as GFL continues to grow by acquisition, scale its costs and leverage the pricing power that comes with operating regulated and local monopolies in many markets, it’s undoubtedly one of the best Canadian stocks to buy now and have confidence owning in your TFSA for years to come.
