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TFSA Investors: 2 Canadian Stocks to Buy and Hold for Life

Own Ontario’s power grid and a global infrastructure consultant inside one TFSA for a mix of stability and long-term growth.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published July 22, 11:45 am EDT

Key Points

A TFSA rewards patient compounding because gains and dividends stay tax-free and don’t affect benefits.
Hydro One offers regulated, rate-base growth and a steadily rising dividend, but relies on regulators and carries debt.
WSP has a record backlog tied to global infrastructure spending, but acquisition and valuation risks can hit returns.

One Tax-Free Savings Account (TFSA) can own the electricity network serving 1.5 million customers and the engineers designing everything from power systems to transportation projects around the world. That combination gives Canadian investors two very different businesses built to benefit from decades of infrastructure demand.

A lifetime holding still needs more than a strong story. It should provide essential services, generate dependable cash flow, and have room to increase earnings long after today’s market headlines disappear.

dividends can compound over time — Source: Getty Images

Why the TFSA rewards patience

Dividends and capital gains earned inside a TFSA generally remain free from Canadian tax. Withdrawals also won’t affect federal income-tested benefits, including Old Age Security and the Guaranteed Income Supplement.

Those advantages become more valuable as an investment compounds, making business quality more important than finding the highest yield this afternoon. For a blend of stability and growth, I’d consider Hydro One (TSX: H) and WSP Global (TSX: WSP).

Hydro One

Hydro One stock operates Ontario’s largest electricity transmission and distribution network. Homes, businesses, factories, and data centres all need reliable power, while Ontario’s growing population and aging electrical system require years of network investment.

Hydro One stock invested $715 million during the first quarter of 2026 and placed $484 million of new assets into service. Those projects can expand its regulated rate base, which supports future earnings as long as regulators approve the related costs and returns.

That growth also reaches shareholders through the dividend. Hydro One stock raised its quarterly payment to $0.3531 per share in May, bringing the annualized dividend to $1.4124 and continuing its roughly 6% average annual dividend-growth pace.

The yield sits near 2.4% at recent prices, so this isn’t a stock for investors demanding enormous income immediately. Instead, Hydro One stock offers a steadier foundation, leaving room for the second company to pursue faster growth.

WSP Global

WSP provides engineering, design, and consulting services across transportation, property, environmental, water, and power projects. Governments and corporations increasingly need those skills as they upgrade infrastructure, strengthen electrical grids, and prepare communities for population growth and extreme weather.

That demand filled WSP’s backlog to a record $19.7 billion at the end of the first quarter, up 19% over 12 months. The backlog represented about 11.5 months of revenue, giving management considerable visibility into work already waiting to move forward.

WSP also expands through acquisitions, allowing it to enter new markets and add specialized expertise. That strategy can create powerful growth, although investors pay a premium for it, making the stock more attractive during market pullbacks than after a sudden rally.

Foolish takeaway

There are some considerations for these investments. Hydro One stock carries substantial debt and depends on regulators approving its investment plans. Storm damage, project delays, or higher borrowing costs could also pressure results, while WSP must integrate acquisitions and deliver large projects without damaging margins.

Those risks deserve monitoring, even among strong Canadian blue-chip stocks. Holding for life should mean following the businesses for life, not placing the statements in a drawer and hoping everyone behaves.

But together, Hydro One stock offers regulated electricity growth and a rising dividend, while WSP provides global exposure to the infrastructure boom building around power, transportation, and urban development. Buying both gradually could give TFSA investors a durable foundation that keeps expanding as Canada and the world build what comes next.