TFSA Investors: 3 Canadian Stocks to Buy and Hold for Life

These three Canadian stocks are each long-term winners. Here’s why I would add them to a TFSA for a lifetime buy and hold strategy.

Robin Brown

Robin Brown has been a Motley Fool contributor since January 2020. He has lived in Canada, Norway, and Australia where he studied theology and business management. Robin works as a commercial real estate manager, as well as an investment research advisor for a private investment manager. Today, he provides equity research and analysis for a private family office. He enjoys traveling, hiking, fishing, and spending time with his wife and children.

Published October 21, 4:40 pm EDT

Building lasting wealth inside a Tax-Free Savings Account (TFSA) requires investors to be extremely patient. They need to pick stocks in high-quality companies that can compound returns through changing markets and economies.

Rather than chasing trends, wise investors pick Canadian stocks with dependable cash flows, strong business models, and predictable growth prospects. Here are three quality stocks that would be worth compounding in a TFSA for many years ahead.

container trucks and cargo planes are part of global logistics system — Source: Getty Images

A top tech stock for a TFSA

Descartes Systems Group (TSX: DSG) has faced its largest single drawdown in the past 10 years. At one point, it had fallen 48% between 2025 and 2026. Yet, its stock has been delivering a nice recovery. It is up 18% in the past six months.

Despite the recent drawdown, Descartes has a great record of long-term returns. Its stock is up 305% in the past 10 years for a 15% compounded annual return.

The future continues to look bright. Descartes provides a crucial global logistics network that is complimented by essential software services. The network is a major differentiator as it is not something that can easily be disrupted by artificial intelligence (AI).

In fact, Descartes is using the vast amounts of data it collects from the network to monetize AI applications for customers.

Descartes has everything to appreciate in a long-term TFSA stock. It has a cash-rich balance sheet, a track record of intelligent acquisitions, high profit margins, huge cash generation, and mid-teens growth. While this stock is down, it still looks like an attractive buy at these levels.

A fast-growing utility stock

If you want a very defensive stock, AltaGas (TSX: ALA) looks to be a very attractive long-term TFSA play. AltaGas has two unique, but attractive businesses.

Fifty percent of its income comes from natural gas utilities in the northern United States. This utility segment has been growing by around 8% per year for the past several years. It continues to aim for a high single-digit growth rate.

The remainder of its business comes from an integrated midstream business focused on liquefied petroleum gases (LPG). It has become the largest LPG exporter in Canada. With the conflict in the Middle East, it continues to take market share in Asian markets.

AltaGas pays a 2.4% yield with an aim to grow its dividend by a mid-single-digit rate every year. For a mix of income and high single-digit growth, this is a solid long-term TFSA stock.

A top retail growth story for a TFSA

If you want something a little more growthy in your TFSA, Aritzia (TSX: ATZ) could be a good choice. Its concept of “Everyday Luxury” brands has been resonating strongly in Canada and the United States.

Despite the market’s doubts, Aritzia just delivered an incredible quarter. Net revenues increased 44% to $1.2 billion and same-store sales grew 35%! The company is firing on all cylinders and executing its growth plan very well.

It could double or even triple its current U.S. boutique count even before it expands internationally. As long as it keeps up its strong execution, there is no reason this won’t be a great stock to hold in a TFSA for many years ahead.