The One Canadian Stock I’d Keep in My TFSA Indefinitely

Here’s why this reliable and consistent Canadian stock is the perfect long-term investment to own in your TFSA forever.

Key Points
  • The TFSA is ideal for buy‑and‑hold investors—own high‑quality stocks and let decades of tax‑free compounding do the work.
  • Enbridge (TSX:ENB) is well suited for a TFSA: its vast North American pipeline network generates fee‑based, predictable cash flow that’s less sensitive to commodity prices.
  • The stock yields roughly 5%, has raised its dividend annually for three straight decades, and those tax‑free dividends make it a strong passive‑income long‑term holding.

There’s no question that the Tax-Free Savings Account (TFSA) is one of the best tools Canadians have for investing in the stock market and building long-term wealth. Yet many investors still overcomplicate the process.

Some try to time the market; others are constantly chasing the next high-growth stock or looking for the latest investing trend; while others keep cash on the sidelines, constantly waiting for the “perfect” time to put their cash to work.

However, long-term investing doesn’t have to be that complicated.

In fact, the best TFSA stocks are often the ones you can buy, hold, and rarely have to think about again, especially when you consider how powerful decades of tax-free compounding can be.

After all, if you’re investing for decades, constantly second-guessing every decision can do more harm than good.

That’s why one Canadian stock that is so high-quality and reliable that it’s a stock I plan to keep in my TFSA indefinitely is Enbridge (TSX: ENB).

Trans Alaska Pipeline with Autumn Colors

Source: Getty Images

Why Enbridge is the perfect Canadian stock to buy and hold in a TFSA

One of the biggest reasons Enbridge is such an attractive long-term investment is the nature of its business.

The company owns one of the largest pipeline networks in North America, transporting massive volumes of oil and natural gas every day.

Therefore, as an infrastructure stock, Enbridge doesn’t rely heavily on commodity prices to generate revenue. Instead, it gets paid for moving energy through its system.

That distinction is important because it helps make Enbridge’s cash flow far more predictable than that of a typical oil producer. Whether oil prices are soaring or pulling back, energy still needs to be transported, and Enbridge continues collecting fees for providing that service.

Furthermore, the company has spent decades building an infrastructure network that would be nearly impossible to replicate today. That creates a significant competitive advantage and helps support the stable cash flow that makes it one of the best Canadian dividend stocks you can buy in your TFSA.

A top pick for passive income seekers

As with any stock you’re buying for the long haul, the most important factor is the strength of the underlying business. And with Enbridge, those reliable operations are also what make it such an attractive income investment.

Not only does the stock currently yield roughly 5%, generating meaningful income for investors while they hold the stock, but even more importantly, Enbridge has a long history of growing that dividend over time.

In fact, Enbridge has increased that dividend every year for three straight decades, while continuing to retain cash to invest in expanding and strengthening its business.

Therefore, it is consistently expanding its operations and growing its distributable cash flow, which ensures consistent dividend growth for years to come.

And inside a TFSA, those dividends can be collected completely tax-free, making the stock even more attractive for investors focused on building wealth over the long run.

Remember, one of the biggest advantages of a TFSA is that it rewards patience. You don’t need to constantly trade in and out of positions, you don’t need to predict short-term market movements, and you certainly don’t need to chase every new investing trend that comes along.

Instead, you can focus on owning high-quality businesses and allowing them to compound over time, and that’s exactly why Enbridge is a stock I’m comfortable holding in my TFSA indefinitely.

Fool contributor Daniel Da Costa has positions in Enbridge. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

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