2 of the Best Canadian Stocks to Buy and Hold in Your TFSA

If you have room in your TFSA and are looking for some of the best Canadian stocks to buy, here are two that are perfect for this environment.

Daniel Da Costa ❯

Daniel joined the Motley Fool Canada team in 2019 with years of experience in banking and investing. Growing up the son of a proprietary stock trader and educator, Daniel’s always found joy in helping Canadians to improve their financial situations. With the Motley Fool, Daniel sees an even more rewarding way to impact Canadians positively. A student and great admirer of Warren Buffett, he’s always looking for investments offering growth at a reasonable price. Outside of finance, Daniel enjoys spending his time with family, sailing, and watching Formula One.

Published April 22, 2022 3:45 pm EDT

The TFSA is an important tool that Canadians have to build wealth. And the best way to utilize your TFSA is to find the best Canadian stocks to buy, but it’s also to buy and hold them for the long haul.

Buying and holding stocks has proven to be one of the best and simplest ways to invest your money. It helps you mitigate against short-term risk, and it helps investors to avoid getting emotional, being impatient, or not exercising enough discipline.

When you find high-quality businesses that you are comfortable and happy to own for the long haul, they will be some of the best investments to protect and grow your capital.

With that in mind, here are two of the best Canadian stocks to buy and hold in your TFSA today.

A top Canadian infrastructure stock to buy in your TFSA

One of the best businesses in Canada and an incredible long-term investment to make has to be Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP). There are numerous reasons why Brookfield is one of the best Canadian stocks to buy in your TFSA today.

First off, it’s one of the few Canadian stocks that could actually be benefitting from this high-inflation environment, as much of its revenue is tied to rising prices, while much of its costs are fixed. However, besides the short-term potential it has, Brookfield is also an incredible long-term growth stock, making it a business that’s ideal for TFSAs.

That’s not all, though. Because Brookfield owns tonnes of defensive assets, and because they are diversified so well, it’s an incredibly safe business. Plus, most importantly of all, the stock has an incredible management team that has helped find growth for years now.

If you have room in your TFSA and you’re looking to buy the absolute best Canadian stocks today, there’s no doubt that Brookfield Infrastructure Partners should be one of the first investments to consider.

A top consumer staple stock that can protect and grow your capital

Another high-quality investment to consider is North West Company (TSX:NWC). North West is one of the best Canadian stocks to buy for your TFSA, especially in this market environment, because it’s so defensive. However, in addition to the safety that it provides your portfolio, North West is also a dividend-growth stock, and lately, it’s been improving its business substantially.

The company operates mostly in remote regions across northern Canada and Alaska. This gives it a significant advantage, because it faces little competition in these regions. Not only that, but in recent years the company has been vertically integrating its business, which has helped improve its margins considerably.

So, it’s the perfect Canadian stock to buy and hold in your TFSA. Over the long haul, it should continue to expand its operations and grow its income as well as the dividend that it’s paying to investors. And should higher inflation and rapidly rising interest rates continue to impact the economy, you can have confidence that North West’s operations will be robust.

Therefore, if you’re looking to buy the best Canadian stocks for your TFSA today, North West stock currently offers a dividend yield of roughly 4.1%.