Tax-Free Savings Account (TFSA) millionaires are often portrayed as if they simply picked one huge winner. In reality, the habits behind their portfolio’s long-term compounding are usually less dramatic. They save consistently, avoid unnecessary trading, reinvest, and stay focused on durable businesses that can grow through different market environments.
Another overlooked habit of many TFSA millionaires is respecting boring businesses. While market sectors like retail, healthcare, and real estate may not sound thrilling, they can generate dependable cash flow and steady earnings growth over time.
In this article, I’ll talk about two TSX stocks that reflect the kind of businesses many TFSA millionaires like to hold for decades.
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A retail stock with staying power
A strong example of a TFSA-friendly stock is Loblaw Companies (TSX:L), Canada’s largest food and pharmacy retailer. Its banners include Loblaw, No Frills, Maxi, Real Canadian Superstore, Shoppers Drug Mart, and President’s Choice.
After climbing 15% over the last year, Loblaw stock recently closed at $64.09 per share with a market cap of $74.6 billion. At this market price, it has a dividend yield of 1%, paid quarterly.
The company is continuing to execute well as its recent results showed revenue growth of 4.2% year-over-year (YoY), backed by food and drug retail sales. Similarly, its e-commerce sales rose 20.3%, while adjusted diluted net earnings per common share increased 10.6% YoY. At the same time, Loblaw’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 6.5%, showing continued operating strength.
Meanwhile, the company is also investing in discount banners, digital grocery, pharmacy services, and store growth. Those initiatives could help it defend market share while serving everyday consumer needs.
A quieter way to own the same strength
Another top TSX stock that long-term TFSA investors love is George Weston (TSX:WN). The company owns a major stake in Loblaw and also controls Choice Properties Real Estate Investment Trust, giving investors exposure to grocery retail and real estate.
After rising 13% over the last 12 months, WN stock now trades at $101.34 per share, with a market cap of $38.1 billion. At this market price, it pays a dividend yield of 1.3%, paid on a quarterly basis.
In the first quarter, George Weston’s total revenue rose 4.2% YoY to $14.6 billion, while its adjusted EBITDA jumped 6.2% from a year ago to $1.7 billion.
Its Choice Properties business added to that stability as its revenue grew 4% to $361 million, while funds from operations rose 2.6% YoY to $196 million. That matters because Choice owns necessity-based retail, industrial, mixed-use, and residential properties across Canada.
During the quarter, George Weston also repurchased 2.9 million common shares for $275 million. It announced an 8% dividend increase, marking its 15th straight year of dividend hikes.
Overall, WN is not just a quieter way to own Loblaw. It also gives TFSA investors exposure to a growing real estate platform backed by essential retail tenants. That mix of grocery, pharmacy, dividends, buybacks, and property income is exactly the kind of boring compounding machine patient TFSA millionaires love to hold for years.
