A Tax-Free Savings Account (TFSA) can be a powerful vehicle for long-term wealth creation, allowing investors to earn tax-free capital gains and dividend income on eligible investments within their available contribution room. However, investors should be mindful of the risks involved. Selling stocks at a loss can not only erode capital but also reduce your cumulative contribution limit permanently.
With that in mind, choosing high-quality, durable businesses matters more when building a long-term TFSA portfolio. Against this backdrop, the following three Canadian stocks could serve as cornerstone holdings in your TFSA. Let’s take a closer look at each one.
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Dollarama
Through its direct-sourcing business model, efficient operations, and optimized logistics network, Dollarama (TSX: DOL) offers a broad range of consumer products at attractive price points. This value-oriented model helps the discount retailer maintain strong customer traffic across economic conditions.
Dollarama is also pursuing an aggressive store expansion strategy. The company plans to grow its Canadian store network from 1,719 locations to approximately 2,200 and its Australian footprint from 410 to 700 stores by the end of fiscal 2034. With disciplined capital investments, rapid store-level sales ramp-ups, relatively short payback periods, and modest maintenance capital requirements, this expansion could provide a durable runway for long-term revenue and earnings growth.
Beyond Canada and Australia, Dollarama also has significant exposure to Latin America through its 60.1% stake in Dollarcity, which operates 752 stores across the region. Dollarcity is likewise targeting substantial expansion, with plans to increase its store count to approximately 1,050 by the end of fiscal 2031.
With a resilient business model, multiple avenues for geographic expansion, and a strong track record of execution, Dollarama appears well positioned to deliver sustained revenue and earnings growth. For long-term investors, these qualities make the stock an attractive potential cornerstone holding for a TFSA.
Fortis
Second on my list is Fortis (TSX: FTS), a leading Canadian utility that serves the electricity and natural gas needs of approximately 3.5 million customers through its nine utility businesses. With a portfolio of regulated utility assets and low-risk transmission and distribution operations, Fortis generates relatively predictable cash flows and resilient financial results across different economic cycles. The company has also rewarded long-term shareholders, delivering an average annual shareholder return of 9.8% over the past 20 years while increasing its dividend for 52 consecutive years.
Looking ahead, rising electricity demand from economic growth, transportation electrification, and the rapid expansion of AI-powered data centers could create additional growth opportunities for Fortis. The company is strengthening its asset base through a five-year, $28.8 billion capital investment plan, which could expand its rate base at an annualized rate of approximately 7% to $57.9 billion by the end of the decade.
Alongside these investments, Fortis continues to focus on operational efficiency and profitability improvements. Management expects these growth initiatives to support annual dividend increases of approximately 4% to 6% in the coming years. With stable cash flows, long-term growth opportunities, and a growing dividend, Fortis could be an attractive cornerstone holding for a long-term TFSA portfolio.
Enbridge
My final pick is Enbridge (TSX: ENB), a diversified energy infrastructure giant with more than 200 energy assets across North America. About 98% of its earnings come from regulated assets and long-term take-or-pay contracts, helping shield the company’s financial performance from commodity price swings and broader economic volatility.
This resilient business model has enabled Enbridge to deliver impressive long-term shareholder returns. Over the past 20 years, the company has generated a total shareholder return of approximately 910%, representing an annualized return of 12.3%. Enbridge has also paid dividends for more than 70 years and has increased its payout for 31 consecutive years. Its current quarterly dividend of $0.97 per share translates into a forward yield of approximately 5.6%, making the stock particularly appealing to income-focused investors.
Looking ahead, Enbridge’s growth outlook remains encouraging. Demand for its energy infrastructure and services could continue to benefit from rising oil and natural gas production and consumption across North America. The company has identified approximately $50 billion in potential growth opportunities and plans to invest $10 billion to $11 billion to advance these projects.
These investments could provide a solid foundation for long-term financial growth while supporting Enbridge’s commitment to shareholder returns. Management expects to return approximately $40 billion to $45 billion to shareholders through the end of this decade. With resilient cash flows, an attractive dividend, and a significant growth pipeline, Enbridge could be a reliable stock for a long-term TFSA portfolio.
