A Tax-Free Savings Account (TFSA) is an excellent vehicle for long-term wealth creation, letting investors earn tax-free returns on investments within their available contribution room. However, investors should exercise caution when selecting stocks for their TFSA. Unlike regular investment losses, capital losses incurred within a TFSA do not restore contribution room. Selling investments at a loss permanently reduces available tax-free contribution room. Therefore, amid ongoing equity market volatility, investors should focus on fundamentally strong businesses with resilient financials, reliable cash flows, and attractive growth prospects.
Against this backdrop, here are four Canadian stocks that could make excellent additions to a long-term TFSA portfolio.
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Dollarama
Dollarama (TSX: DOL) is a leading discount retailer operating 1,734 stores in Canada and 414 in Australia. Its efficient operating model, direct sourcing strategy, and optimized logistics help keep costs low, allowing it to offer a wide range of consumer products at competitive prices. This value proposition attracts cost-conscious shoppers and supports healthy same-store sales growth, even during economic uncertainty.
Dollarama is also pursuing an aggressive expansion strategy. Management aims to increase its Canadian store count to 2,200 and its Australian network to 700 by fiscal 2034. Additionally, its 60.1% stake in Dollarcity provides exposure to Latin America, where the retailer operates 760 stores and plans to expand to 1,050 by the end of 2031.
Given its resilient business model, attractive growth opportunities, and diversified market presence, Dollarama could be an excellent addition to a long-term TFSA portfolio.
Waste Connections
Waste Connections (TSX: WCN) provides non-hazardous solid waste management services across the United States and Canada. Its focus on secondary and exclusive markets limits competition, strengthens pricing power, and supports higher profit margins. The company has also consistently expanded through organic growth and strategic acquisitions, driving financial performance and shareholder returns.
Last month, Waste Connections reported impressive third-quarter results, surpassing its internal guidance. Revenue and adjusted earnings per share (EPS) increased 7.3% and 9.7%, respectively. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) also grew 7.9%, while its margin expanded 20 basis points to 34%.
Looking ahead, the company plans to pursue further acquisitions, supported by a healthy pipeline of privately held targets. Investments in renewable natural gas facilities, technology, and employee retention could also enhance efficiency and profitability. Given its resilient business model, improving margins, and attractive growth prospects, Waste Connections could be a solid long-term TFSA holding.
Fortis
Third on my list is Fortis (TSX: FTS), which provides electricity and natural gas to approximately 3.5 million customers. Its regulated asset base and focus on low-risk transmission and distribution operations make its financial performance relatively resilient to macroeconomic fluctuations. These characteristics support stable cash flows, enabling Fortis to increase its dividend for 53 consecutive years. The utility company currently pays a quarterly dividend of $0.67 per share, offering a forward yield of approximately 3.1%.
Fortis is also expanding its regulated asset base to support long-term growth. After investing $4.2 billion so far this year, the company expects its total capital investments to reach $6 billion for this year. Its latest five-year capital plan for 2027–2031 targets rate base growth to $63.9 billion by the end of 2031, representing an annualized increase of 7.5%. These investments, combined with favourable customer rate revisions and cost-optimization initiatives, could strengthen its financial performance. Management also expects dividends to grow 4–6% annually through 2031, making Fortis an attractive TFSA holding for long-term investors.
Bank of Nova Scotia
My final pick is Bank of Nova Scotia (TSX: BNS), which provides a broad range of financial services across multiple markets. Its diversified revenue streams support healthy and stable cash flows, enabling the bank to pay dividends consistently since 1833. It currently offers a quarterly dividend of $1.14 per share, translating into an attractive forward yield of 3.6%.
Furthermore, Scotiabank is focusing on expanding its more profitable North American operations while scaling back exposure to riskier, less profitable Latin American markets. This strategic shift could improve operational efficiency, enhance earnings quality, and support sustainable long-term growth. The bank is also returning capital to shareholders through share repurchases, recently increasing its buyback authorization from 15 million to 40 million shares. This new share repurchase program could reduce its outstanding share count by approximately 3.3%. Given its long dividend history, diversified operations, and ongoing strategic initiatives, Scotiabank appears well-positioned to sustain dividend growth and deliver attractive long-term shareholder returns.
