3 of the Best Canadian Stocks for a Buy and Hold in a TFSA

Here are three of the best buy and hold Canadian stocks for TFSA investors, offering stability, dividends, and long‑term growth.

Demetris Afxentiou

Published March 27, 9:30 am EDT

The Tax-free Savings Account (TFSA) is one of the most powerful long-term wealth-building vehicles available to Canadian investors. That’s because both contributions and gains compound tax-free, making it the perfect place to hold long-term Canadian stocks.

How to pick the right Canadian stocks to fit that mould is the more important question. They need to offer dependable dividends, stability, and the ability to continue growing across market cycles.

Fortunately, the market gives us plenty of options to help make that decision. That includes this trio of Canadian stocks standing out among the rest. Adding them to any TFSA portfolio can meet all of the above goals, and more.

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Stock #1: Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS) is one of Canada’s big bank stocks. This means that Scotiabank offers both an attractive dividend and a reliable, growing business.

In terms of a dividend, Scotiabank’s yield sits a little higher than its peers, and for good reason. Scotiabank is known as Canada’s most international bank, with a growing presence in international markets around the world. Those markets often provide higher growth, albeit with more risk.

In recent years, Scotiabank has moved to limit that risk by focusing on more mature international markets, such as the U.S. and Mexico. As of the time of writing, Scotiabank’s yield comes in at 4.6%.

Scotiabank has paid that dividend for well over a century. That dividend is supported by a diversified business that spans retail banking, wealth management, and international operations. The bank has also provided annual upticks to that dividend going back over a decade.

TFSA holders seeking Canadian stocks that can provide a reliable income and with long‑term staying power will find Scotiabank a compelling choice.

Stock #2: Fortis

Another one of the top Canadian stocks for investors to consider adding to a TFSA is Fortis (TSX:FTS). Fortis is one of the most dependable stocks on the market, with an impressive 53‑year streak of annual dividend increases.

Part of the reason for that streak – and the appeal of Fortis as a whole – stems back to its reliable business model. As a regulated utility stock, Fortis generates earnings that are both predictable and supported by long‑term contracts. Fortis focuses on essential infrastructure such as electricity and natural gas distribution, making it a steady performer regardless of economic conditions.

This helps to reduce volatility and protect investors during market downturns. That’s an important fact that makes Fortis one of the most defensive picks on the market.

As of the time of writing, Fortis’ quarterly dividend carries a yield of 3.3%.

For TFSA investors who want a stock they can buy and hold indefinitely, Fortis offers stability, income, and consistent long‑term growth.

Stock #3: Canadian National Railway (CNR)

It’s hard to compile a list of some of the top Canadian stocks to own in a TFSA and not mention Canadian National Railway (TSX:CNR).

That’s because Canadian National is one of the strongest long‑term compounders in Canada. Its rail network forms a critical part of North America’s supply chain, giving it a wide economic moat and strong pricing power. Every year the railway hauls over $250 billion worth of goods across its network, which connects to three coastlines in North America.

That defensive setup and strong results help the railway to pay investors a handsome dividend. As of the time of writing, Canadian National boasts a respectable 2.6% quarterly dividend. The railway retains its status as one of the best Canadian stocks to own for income with its stellar three-decade streak of annual increases.

Canadian National has delivered impressive total returns over decades, supported by efficient operations, disciplined capital allocation, and steady dividend growth. Its low volatility and essential role in the economy make it an ideal TFSA holding for investors who want a stock that can quietly compound wealth over the long run.