Whenever someone asks me what belongs in a Tax-Free Savings Account (TFSA) for the long haul, I do not start by looking at whichever stock has had the best year. I mainly look for businesses I’d still feel comfortable owning through the next recession, the next market correction, and the next economic cycle.
And interestingly, such companies usually have something in common: they keep finding new ways to grow, generate plenty of cash, and reward patient investors without relying on short-term market excitement. In this article, I’ll highlight two top Canadian stocks I’d be happy to own in a TFSA for decades.
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Constellation Software stock
For TFSA investors seeking a long-term compounder, Constellation Software (TSX: CSU) could be an easy choice to keep on the radar. The business has built its growth story around buying and developing mission-critical software companies.
So basically, it develops, installs, and supports vertical market software across more than 100 industries worldwide. CSU shares recently closed at $3,020.30 per share, giving the company a market cap of about $64 billion. The stock had gained more than 13% over the last month, yet it remained 39% below its 52-week high. Investors can also benefit from its modest but reliable dividend yield of 0.2%.
That share-price weakness doesn’t tell the whole story, as Constellation’s latest results clearly showed that its underlying business continued to expand at a healthy pace. In the first quarter, the company’s revenue rose 20% year over year (YoY) to US$3.2 billion, driven mainly by acquisitions. Its organic revenue growth reached 6%, or 2% after adjusting for foreign exchange movements.
The software provider’s cash flow from operations increased 9% YoY during the quarter to US$897 million. At the same time, its free cash flow to shareholders jumped 44% to US$733 million, giving it more capital to keep funding its acquisition strategy.
Overall, Constellation’s strong cash flow, disciplined deal-making, and expanding software portfolio continue to support its long-term investment appeal.
Dollarama stock
Another quality Canadian stock worth considering is Dollarama (TSX: DOL). Unlike Constellation, it offers exposure to a familiar consumer business built around affordable everyday products and a growing store network.
It runs one of Canada’s largest discount retail chains and also has a presence in Australia and Latin America. At the time of writing, DOL shares traded at $190.62 apiece, giving the retailer a market cap of about $51.6 billion. The company’s stock has risen 3% over the last year, but it still trades 9% below its 52-week high. The stock’s dividend yield at the current market price stood at 0.3%.
In the first quarter of its fiscal year 2027 (ended on May 3, 2026), Dollarama’s sales jumped 21.4% YoY to $1.8 billion. That increase came from new stores, 5.6% comparable store sales growth in Canada, and a $192.8 million contribution from the Australian business.
The firm’s Canadian comparable sales benefited from a 3.5% rise in the number of transactions and a 2% increase in average transaction size. Strong demand for consumables and general merchandise drove those results.
Store expansion remains central to Dollarama’s growth plans. The retailer opened 28 net new locations in Canada in the latest quarter and ended the period with 1,719 stores. Dollarcity expanded to 752 stores, while the Australian network reached 410 locations as more stores began adopting Dollarama’s layout and operating model.
That international expansion is still a work in progress, but it gives the business more ways to grow over time. Overall, steady customer demand, a strong value proposition, and a widening store footprint make Dollarama an attractive stock for long-term TFSA investors today.
