3 TSX Stocks to Buy for a Set-It-and-Forget-It TFSA

A truly hands-off TFSA works best with boring, essential businesses that can grow and pay you through almost any market.

Key Points
  • Fortis is a regulated utility with steady earnings and a long dividend-growth streak backed by a big capital plan.
  • Royal Bank offers diversified, scale-driven profits and a reliable dividend, with the main risk being a weaker economy.
  • Canadian National Railway owns irreplaceable infrastructure with pricing power, even if freight volumes dip in slowdowns.

A set-it-and-forget-it Tax-Free Savings Account (TFSA) should hold businesses that don’t need constant babysitting. Canadians should look for durable advantages, steady cash flow, reliable dividends, and room to grow through different market cycles. It also helps to own companies tied to essential services or core parts of the economy, as those businesses tend to keep humming even when headlines get noisy. So let’s look at the top ones to consider.

man crosses arms and hands to make stop sign

Source: Getty Images

FTS

Fortis (TSX: FTS) is about as close to sleep-well-at-night as the TSX gets. It owns regulated electric and gas utilities across Canada, the United States, and the Caribbean. That’s a great fit for a TFSA you want to leave alone for years. Over the last year, Fortis gave investors exactly what they want from a long-term compounder: quiet progress. In February, it reported 2025 net earnings of $1.7 billion, or $3.40 per share, while adjusted earnings rose to $3.53 per share from $3.28 in 2024.

The real draw is what comes next. Fortis stock now has a $28.8 billion capital plan for 2026 through 2030, up $2.8 billion from its prior five-year plan, and expects that to drive 7% annual rate base growth and support yearly dividend growth of 4% to 6% through 2030. That gives Fortis stock a very clear roadmap.

The shares trade at about 23 times trailing earnings, so it’s not a bargain-bin pick, but investors are paying for stability, a 52-year dividend-growth streak, and a business built around essential infrastructure. The main risk is valuation, since utilities can look pricey when sentiment gets too cozy. Yet investors can pick up a solid 3.2% yield.

RY

Royal Bank of Canada (TSX: RY) looks like another easy TFSA anchor. It’s Canada’s biggest bank, with exposure to personal banking, wealth management, capital markets, insurance, and commercial lending. That scale gives Royal Bank multiple ways to grow, and it makes the business harder to knock off course. Over the last year, Royal Bank kept building on the HSBC Canada deal and, just recently, said it plans to deploy up to $1 billion over time to help support homegrown Canadian companies.

The earnings picture still looks strong. Royal Bank reported 2025 net income of $20.4 billion, up 25% year over year. Then in its latest quarter, it posted record net income of $5.8 billion, with adjusted diluted earnings per share of $4.08, up 13% from a year earlier. Canadian Banking remained a major engine, while wealth and fee-based businesses added support.

Royal Bank stock trades at about 16.4 times trailing earnings and yields roughly 2.6%, which looks reasonable for a top-tier bank still compounding at scale. Risks include credit losses if the economy weakens, but for a set-it-and-forget-it TFSA, RBC still checks a lot of boxes.

CNR

Canadian National Railway (TSX: CNR) brings a different kind of strength. Railroads are hard to replicate, deeply embedded in the economy, and critical for moving everything from grain to consumer goods. It also has a network advantage that stretches across Canada and into the United States, which gives it reach that few businesses can match. Even through freight softness and trade uncertainty over the last year, CNR stock kept improving its operating performance.

In 2025, CNR stock generated $17.3 billion in revenue, $4.7 billion in net income, and diluted earnings per share of $7.57. Fourth-quarter revenue rose 2%, while adjusted diluted earnings per share (EPS) climbed 14%. It also repurchased about 15 million shares for roughly $2 billion over the year.

At about 20 times trailing earnings with a dividend yield near 2.4%, CNR stock is not dirt cheap, but it offers quality, pricing power, and long-term relevance. The risk is that rail volumes can wobble when trade or industrial demand weakens, but this still looks like the sort of stock you can tuck away and revisit years later with a smile.

Bottom line

If you want a TFSA that doesn’t demand much attention, these three fit the brief. Especially when putting $7,000 in each for further income.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
RY$240.9429$6.56$190.24Quarterly$6,987.26
FTS$78.0889$2.56$227.84Quarterly$6,949.12
CNR$151.6846$3.66$168.36Quarterly$6,977.28

For a set-it-and-forget-it TFSA, boring winners usually age very well.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Canadian National Railway and Fortis. The Motley Fool has a disclosure policy.

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