The Absolute Best Canadian Stocks to Buy and Hold Forever in a TFSA

These absolute best Canadian stocks are well-positioned to capitalize on multi-year demand trends and deliver solid growth.

Key Points
  • These Canadian stocks are solid investments for TFSA investors as these companies are set to benefit from strong growth tailwinds and durable business models.
  • Cameco is positioned to benefit from rising global electricity demand driven by AI infrastructure and nuclear energy expansion, as well as from its low-cost uranium assets.
  • MDA Space offers long-term growth potential through expanding satellite, robotics, and geointelligence businesses supported by a large contracted backlog.

A Tax-Free Savings Account (TFSA) is an effective wealth-building tool available to Canadian investors. Every dollar your investments earn inside a TFSA can compound free from taxes. That means your capital gains, dividends, and long-term returns stay fully in your pocket.

Against this background, here are the absolute best Canadian stocks to hold forever in a TFSA.

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Source: Getty Images

Best Canadian stock #1: Cameco

As artificial intelligence (AI) drives one of the biggest infrastructure buildouts in decades, TFSA investors could consider adding the best Canadian stocks positioned to benefit from soaring electricity demand.

The rapid expansion of AI data centres is placing enormous pressure on global power grids. At the same time, governments and corporations continue pushing toward electrification and decarbonization, increasing the need for stable, large-scale energy generation. This is creating a solid long-term tailwind for nuclear energy companies such as Cameco (TSX: CCO).

Cameco owns some of the highest-quality uranium assets in the world, including several of the industry’s lowest-cost reserves. This gives the company a competitive advantage. During periods of weaker uranium prices, Cameco’s low-cost production helps protect profitability. When uranium markets strengthen, the company is positioned to generate significant upside leverage.

Further, Cameco has strategically expanded across the nuclear fuel supply chain through investments in Westinghouse Electric Company and Global Laser Enrichment. Moreover, long-term contracting also strengthened Cameco’s business model. The company’s long-duration agreements improve revenue visibility and cash flow stability.

Looking ahead, as AI infrastructure expands and electricity consumption rises, reliable baseload power is becoming increasingly critical, potentially putting uranium demand in a strong multiyear growth cycle. This provides a solid growth opportunity for Cameco.

Overall, Cameco is the absolute best Canadian stock to capitalize on AI infrastructure buildout and green energy.

Best Canadian stock #2: MDA Space

MDA Space (TSX: MDA) is a solid TSX stock to buy and hold in a TFSA forever. The Canadian space technology company is one of the most compelling growth opportunities on the TSX, backed by booming demand for satellite infrastructure, rising defence spending, and a multi-billion-dollar backlog that provides strong revenue visibility.

MDA Space operates across three high-growth businesses, including satellite systems, geointelligence, and advanced robotics. This positions it well to capitalize on demand.

Its satellite systems division has become a major growth engine for the company. MDA is participating in multiple communications satellite programs while also gaining momentum in next-generation satellite constellation projects.

Its robotics and space operations segment continues to gain traction through government-backed programs and commercial partnerships. The company has deep expertise in robotics technology, an area likely to remain strategically important as lunar exploration and orbital infrastructure projects expand. At the same time, its geointelligence segment is delivering steady growth through increasing demand for Earth observation and data services.

As of the first quarter of fiscal 2026, the company reported $3.7 billion in contracted backlog, providing strong visibility into future revenue growth. Further, MDA’s longer-term opportunity pipeline remains compelling.

MDA is targeting roughly $40 billion in potential opportunities over the next five years, which will boost its financials and drive its share price higher.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Cameco and MDA Space. The Motley Fool has a disclosure policy.

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