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

These Canadian stocks are backed by proven businesses and strong growth opportunities led by significant demand tailwinds.

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Key Points
  • Bird Construction offers long-term infrastructure-driven growth, supported by an $11 billion project backlog and exposure to high-demand sectors such as data centres, energy, transportation, and defence.
  • Celestica is benefiting from the AI infrastructure boom, with rapid growth in its networking business and a strong pipeline that supports continued expansion through 2026 and beyond.
  • 5N Plus is capitalizing on demand for specialty materials in renewable energy, space, and healthcare, backed by strong order visibility, capacity expansion, and continued growth opportunities.

Investors with unused Tax-Free Savings Account (TFSA) contributions could consider holding high-quality Canadian growth stocks to build tax-free wealth.

Any capital gains and dividends earned in a TFSA can grow tax-free, enhancing overall returns in the long run.

With this background, here are three Canadian stocks that are compelling options to buy and hold in a TFSA.

Canada national flag waving in wind on clear day

Source: Getty Images

Best Canadian stock #1: Bird Construction

Bird Construction (TSX: BDT) is a compelling Canadian stock to buy and hold in a TFSA. As Canada increases investment in major nation-building projects, the company is well-positioned to benefit from long-term growth across several high-priority sectors.

Management expects both revenue and profit margins to improve throughout the year, with all business segments projected to deliver double-digit revenue growth. Demand remains strong in key areas such as defence, nuclear energy, healthcare, LNG, renewable power, transportation infrastructure, ports, and critical minerals.

A particularly promising opportunity is the fast-growing data centre market. Bird estimates Canada’s data centre project pipeline exceeds $20 billion. Its ability to self-perform significant portions of projects gives it greater control over quality, costs, and timelines, creating a competitive edge.

Further, Bird’s solid balance sheet provides flexibility to invest in growth, pursue acquisitions, and continue paying dividends to shareholders. The company has excellent revenue visibility through its record $11 billion backlog, including $5.4 billion in secured contracts and $5.6 billion in pending awards.

With exposure to major infrastructure trends, growing data centre opportunities, and a strong project pipeline, Bird Construction offers significant growth potential.

Best Canadian stock #2: Celestica

Celestica (TSX: CLS) is one of the best Canadian stocks to buy and hold inside a TFSA. It is one of the biggest beneficiaries of the artificial intelligence (AI) infrastructure boom, and its growth trajectory remains solid.

As cloud providers and businesses invest heavily in AI-powered data centres, demand for Celestica’s networking equipment and technology solutions continues to rise. This has fueled impressive financial growth and strong stock performance. Notably, after the significant rally, Celestica stock has pulled back, providing a solid entry for TFSA investors with a long-term outlook.

Celestica’s growth outlook remains encouraging. A growing backlog, stronger customer relationships, and a healthy pipeline of orders provide greater visibility into revenue and earnings growth through 2026 and beyond.

Celestica’s Connectivity & Cloud Solutions (CCS) division is leading the charge. In its latest quarter, CCS revenue surged 76% year over year to $3.2 billion. Communications revenue rose 69%, driven by demand for 800G networking switches, while enterprise revenue jumped 101% as companies expanded AI and machine-learning investments.

Looking ahead, the launch of next-generation 1.6T networking switches and the company’s growing presence in AI computing platforms could create additional growth opportunities. With strong AI tailwinds, expanding market opportunities, and a growing business pipeline, Celestica appears well-positioned to deliver long-term growth and wealth-building potential.

Best Canadian stock #3: 5N Plus

5N Plus (TSX: VNP) is another top stock to buy and hold inside a TFSA. Although its shares have climbed by more than 132% over the past year, the company remains well-positioned for further growth.

5N Plus produces specialty semiconductor and performance materials used in fast-growing sectors such as renewable energy, space technology, healthcare imaging, and advanced manufacturing. Rising demand across these industries continues to create strong growth opportunities.

Its Specialty Semiconductors division is the main growth engine, benefiting from higher sales volumes, stronger pricing, and a more profitable product mix. Demand from renewable energy projects and the expanding space solar market remains particularly strong. The Performance Materials segment has also gained momentum from improved pricing for bismuth-based products.

At the end of Q1 2026, 5N Plus reported a backlog equal to roughly 336 days of annualized revenue, reflecting strong customer demand and solid revenue visibility.

Supported by capacity expansion, efficiency improvements, and growing demand in several high-growth markets, 5N Plus remains one of the most compelling growth stocks on the TSX.

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

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