The Tax-Free Savings Account (TFSA) is one of the best investment vehicles available to Canadians. And if you have maxed your TFSA this year, that’s a milestone worth celebrating.
That being said, even if you maxed your TFSA, there’s still plenty of growth potential to realize before that new contribution room unlocks next year. Part of that appeal is that both contributions and reinvestments inside the TFSA continue to compound tax-free.
There are also other vehicles to consider, such as the RRSP, FHSA and non-registered accounts.
In other words, investors don’t need to focus on trying to find that next high-yield stock. Instead, investors should focus on finding established businesses that can provide growth over the long term and keep compounding quietly.
Here’s a look at three of those options to consider.
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Invest in a steady Canadian compounder
Canadian National Railway (TSX: CNR) is the type of business that earns a long-term spot in any TFSA. The company operates one of the largest railways in North America. That rail network connects major markets in Canada and the U.S. to three coastlines.
That massive rail network also represents a huge defensive moat. For a competitor to emerge and build out a comparable network would take decades to construct and cost billions.
Canadian National hauls a wide range of goods across that network. That includes grain, forest products, automobiles, and consumer products to name just a few. That diversification helps the railway hold up through different parts of the economic cycle.
In total, the railway transports over $250 billion of goods across its network each year.
In terms of income, Canadian National offers a yield of 2.2%, which comes with three decades of consecutive annual increases.
Dollarama keeps the focus on growth
Another option to consider is Dollarama (TSX: DOL). Canada’s largest dollar-store operator has realized incredible growth over the past decade. In fact, over the past five years, the stock has returned over 230%.
Part of that growth comes down to a simple business model offering affordable everyday products sold at fixed prices. Those fixed price points provide a sense of value that persists across different economic cycles.
Prospective investors should note that Dollarama’s success is now spreading to international markets. The company operates stores in several Latin American countries under the Dollar City name, while Dollarama’s Australian presence falls under the Reject Shop banner.
And that growth continues.
Comparable-store sales in Canada rose 5.5% through the first six months of the year. And despite the push to international markets, Dollarama has a long-term goal of operating 2,200 Canadian stores by 2034, up from the 1,691 stores it operated at the end of fiscal 2026.
While not a bargain stock, Dollarama does offer long-term growth appeal, making it an ideal growth pick for long-term investors.
Brookfield gives investors a broader growth engine
A final option for investors to consider is Brookfield (TSX: BN). Instead of focusing on one business or area of the market, Brookfield has multiple revenue streams. The company invests across asset management, infrastructure, renewable power, real estate, credit, and private equity.
That might sound complex at first, but the appeal is straightforward. Brookfield has several businesses that work at the same time, which gives it multiple ways to grow over a long holding period.
One of the key growth drivers is the asset-management segment. In the most recent quarter, fee-related earnings rose 20% year over year, while fee-bearing capital climbed to US$672 billion.
While Brookfield does offer a dividend, the 0.76% yield is hardly the main appeal of holding the stock. But holding Brookfield can be a way to add global exposure through a single Canadian company.
Have you maxed your TFSA yet?
Finding the right investments takes time. Letting them grow over longer periods takes patience. That’s why the three stocks mentioned above are great long-term compounders.
They are established businesses with a strong history of growth.
In my opinion, they belong in any long-term growth-focused portfolio.
