The Single Stock I’d Hold Forever in a TFSA

If I could own just one stock in my TFSA and never sell, it would be Fortis. Here’s why this “boring” utility belongs in your account.

Key Points
  • Fortis has raised its dividend for 52 straight years, one of the longest streaks in Canada.
  • The company is 100% regulated, which makes its earnings unusually steady and easy to forecast.
  • A TFSA shelters every dividend and capital gain from tax, which suits a slow-and-steady compounder like this one.

If I had to pick one stock to buy in my Tax Free Savings Account (TFSA) and never touch again, it would be Fortis (TSX: FTS).

Valued at a market cap of $39 billion, Fortis is among the largest utility companies in Canada. In the last 10 years, the TSX stock has returned 176% to shareholders after adjusting for dividends. Despite its inflation-beating returns, the Canadian dividend stock offers you a yield of 3.4% in June 2026.

pig shows concept of sustainable investing

Source: Getty Images

Own this TSX dividend stock in the TFSA

Most people invest in a TFSA hoping for big, fast gains. The smarter play is often the opposite. You want to own a stock that keeps paying you year after year while steadily increasing dividends.  

Fortis fits that brief:

  • The company runs nine regulated electric and gas utilities across Canada, the United States, and the Caribbean.
  • Roughly 95% of its assets are tied to the transmission of electricity and natural gas through poles, wires, and pipelines. Basically, Fortis operates in a recession-resistant sector, making it a top buy in 2026.
  • As Fortis is 100% regulated across 16 jurisdictions, its earnings potential is largely set by regulators.

A 52-year dividend streak

What makes Fortis special is that the growth engine is still running.

At its 2026 annual meeting on May 7, management laid out a $28.8 billion capital plan, which is $2.8 billion larger than the prior plan.

Chief Financial Officer Jocelyn Perry told shareholders the plan should lift the rate base by about $16 billion through 2030, supporting a roughly 7% average annual rate base growth.

Basically, the rate base is the pile of approved assets on which a utility earns a regulated return. When it grows, earnings and dividends tend to follow.

Fortis earned $1.7 billion in 2025, or $3.40 per share, while adjusted earnings rose 5% to $3.53 per share. The board then raised the dividend for the 52nd year in a row, lifting payments to $2.49 per share, up 4% from 2024.

Management is now targeting 4% to 6% dividend growth every year through 2030. It shows that the growth story for Fortis is far from over.

Fortis yields about 3.4% today, with the stock near $78. Inside a TFSA, every one of those dividend payments lands in your account tax-free.

Now picture that 4%-6% annual dividend growth, reinvested year after year, with zero tax liability. That is how a slow mover quietly turns into a serious wealth builder over decades.

Bay Street forecasts Fortis to increase its adjusted earnings per share from $3.53 in 2025 to $4.71 in 2030. Comparatively, dividends are forecast to expand from $2.49 per share to $3.21 per share in this period.

Investors should note that every investment carries certain risks. Utility companies carry significant debt on their balance sheet and are impacted by interest rate hikes.

However, few Canadian businesses offer a mix of predictable income, steady growth, and a 52-year streak of dividend hikes.

If you are building a TFSA you never plan to touch, Fortis is the one stock I would be comfortable holding forever.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

More on Dividend Stocks

people sit in two wooden beach chairs facing the Caribbean ocean holding drinks and making a toast
Dividend Stocks

2 Canadian Dividend Stocks I’d Buy and Hold for Life

These two Canadian dividend stocks offer an attractive mix of dividend income and future growth, making both worth a closer…

Read more »

person with spyglass looks at ocean horizon
Dividend Stocks

This 5.9% Dividend Stock Is One I’ll Never Sell — Here’s Why

This Canadian dividend stock has a great combination of a 5.8% dividend yield, resilient cash flow, and billions of dollars…

Read more »

concept of growth
Dividend Stocks

The Dividend Stock I’d Never Sell, Even in a Downturn

Fortis is a dividend stock I'd hold through a downturn. Its regulated utilities and dividend growth support a patient approach…

Read more »

frustrated shopper at grocery store
Dividend Stocks

2 Dividend Stocks Retirees Can Count on for Decades

These two Canadian dividend stocks offer a great mix of essential businesses, regular dividends, and long-term growth investments that could…

Read more »

customer comparison shops in liquor store
Dividend Stocks

How Much TFSA Income Triggers an OAS Clawback?

The OAS clawback is based on net world income, with a 2025 minimum recovery threshold of $93,454, not on a…

Read more »

ETF is short for exchange traded fund, a popular investment choice for Canadians
Dividend Stocks

Create a Set-And-Forget Portfolio With Just 3 ETFs

Build a set-and-forget portfolio with VCN, XUU, and XEF, three ETFs offering broad exposure to Canadian, U.S., and international stocks.

Read more »

voice-recognition-talking-to-a-smartphone
Dividend Stocks

1 Canadian Dividend Stock Down 22% I’d Buy Right Now

The Canadian dividend stock has witnessed a notable pullback, creating a buying opportunity for investors looking for steady income.

Read more »

Colored pins on calendar showing a month
Dividend Stocks

How to Build a Canadian Portfolio That Pays You Monthly

If you like monthly income, this mix of five real estate, industrials, and energy stocks can pay you attractive monthly…

Read more »