I’m Holding These 2 Canadian Stocks in My TFSA for Life

Understand the life cycle of stocks and why some deserve a permanent place in your investment strategy through a TFSA.

Key Points
  • TFSA is an ideal vehicle for holding long-term stocks like Granite REIT and HIVE Digital Technologies, offering tax-free growth and withdrawals for Canadian residents, though U.S. dividend stocks may incur withholding tax.
  • Granite REIT's diversified and adaptive property portfolio, coupled with its strong financial structure, and HIVE's strategic pivot with evolving tech trends, make them favorable choices for lifetime holding in a TFSA.

Not every stock is worth holding for a lifetime. Every business has a cycle from growth to maturity to recession, followed by a recovery. A company that adapts its business to change thrives, and others barely survive. But for the stocks that are worth holding onto, a Tax-Free Savings Account (TFSA) is a good vehicle.

Blocks conceptualizing Canada's Tax Free Savings Account

Source: Getty Images

Why a TFSA is an ideal instrument to hold long-term stocks

A TFSA allows you to start investing after you turn 18 until your last breath, irrespective of your income. The only condition is that you must be a Canadian resident for tax purposes. If you have lived abroad for two years, you can’t contribute to your TFSA, and your contribution room will also not accumulate for those years.

The TFSA also allows you to withdraw tax-free. It means if you manage to hit a jackpot and buy stocks of the future Nvidia, you can keep selling small portions and withdraw that amount tax-free. Only U.S. dividend stocks might pose a problem, as the Internal Revenue Service withholds tax on dividends, and even a TFSA can’t avoid that tax.

Two Canadian stocks to hold in my TFSA for life

Lifetime holding needs some motivation in the form of dividend payouts. While there are many good dividend stocks, this one is particularly worth holding for the long term.

Granite REIT

Unlike other REITs that are either concentrated in a geographic location, a single tenant, or a property type, Granite REIT (TSX: GRT.UN) has a diversified portfolio. Its largest tenant is Magna International. The REIT has been actively reducing exposure to this tenant from 93% of gross leasable area (GLA) in 2012 to 19% in June 2026. Also, it has 60% of its property in the United States, 22% in Canada, and the rest in Europe. Granite has diversified its portfolio across e-commerce distribution, logistics, warehouse, and industrial properties.

What makes me bullish on Granite is that it actively acquires and disposes of properties to keep up with the evolving demands for property types. In the first six months of 2026, it acquired eight income-producing properties and increased revenue by $9.1 million. This was offset by a revenue decline of $7.9 million from dispositions of five income-producing properties. As for net operating income from the same property, Granite expects this to grow by 6%-6.5% in 2026. All this has helped Granite increase its funds from operations per unit at a compounded annual growth rate of 10% in the last five years.

While Granite is active and modern in its property management, it maintains a conservative balance sheet. Its net debt of $3.1 billion is 32% of its investment property value or 6.6 times its adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). It is way below the industry average of 9.6 times.

The REIT can give you a 4%–5% yield if you buy in September or October, when the REIT’s unit price tends to fall below $75. Moreover, the REIT grows dividends by 4% on average. A consistent payout can help you stay invested.

HIVE stock

HIVE Digital Technologies (TSX: HIVE) is a stock to buy and hold forever and keep taking payouts on occasional growth. This stock has restructured over time. It started as blockchain technology that mines Bitcoin and Ethereum. But the Ethereum merge in 2022 removed the entire business segment overnight, and all Hive was left with was Bitcoin.

It looked to monetize its Nvidia graphics processing unit (GPU)-powered data centre with cloud services. The BUZZ platform started with leasing high-performance computing space on the cloud. However, the artificial intelligence (AI) boom created an opportunity for HIVE to leverage its strength in building and managing GPU-powered data centres. It began converting its Tier 1 data centres to Tier 3. It even partnered with BCE to build AI fabric. HIVE is looking for a hyperscaler customer to accelerate its growth.

The way Hive has modified and adjusted its business to fast-changing technology trends makes me bullish on the stock. It is a stock to buy at $4 or lower and keep booking profits whenever the share price crosses $8.

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Granite Real Estate Investment Trust, Magna International, and Nvidia. The Motley Fool has a disclosure policy.

More on Tech Stocks

man in bowtie poses with abacus
Tech Stocks

A Simple Way to Estimate Your Retirement Number

Here's how Canadian couples can calculate their retirement number in 2026.

Read more »

Thrilled women riding roller coaster at amusement park, enjoying fun outdoor activity.
Tech Stocks

Celestica Stock Has Been a Roller Coaster: What I’d Do With It Now

Despite near-term volatility risks, Celestica’s strong growth prospects could make it an attractive long-term investment for risk-tolerant investors.

Read more »

A chip in a circuit board says "AI"
Tech Stocks

Celestica’s Revenue Jumped 62%, and I Like the Stock’s Outlook

Given its strong financial performance, exposure to high-growth AI infrastructure opportunities, and reasonable valuation, Celestica remains an attractive buy for…

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Dividend Stocks

The Next AI Winners May Own Trusted Data: I’d Watch This Canadian Stock

As AI models become widely available, trusted professional data could become a more valuable competitive advantage.

Read more »

Forklift in a warehouse
Dividend Stocks

Apartment Rents Are Slowing: I’d Buy This Canadian REIT Instead

Cooling apartment asking rents make industrial real estate worth another look for investors seeking a different source of monthly income.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

3 Ways to Maximize Your TFSA Before Year-End

Maximize your TFSA before year-end with three different approaches to investing for long-term income and growth.

Read more »

money goes up and down in balance
Dividend Stocks

One $7,000 TFSA Contribution Could Grow Into $50,000: Here’s How Long It Takes

Once the money is inside a TFSA account, a $7,000 investment can become $10,000, $20,000, or considerably more with compounding,…

Read more »

A robotic hand interacting with a visual AI touchscreen display.
Tech Stocks

Unpopular Opinion: BlackBerry Stock Isn’t All That

Investigate the dramatic rise of BlackBerry stock and analyze the impacts of revenue growth on its performance.

Read more »