Investing in stocks through a Tax-Free Savings Account (TFSA) can help generate significant tax-free capital gains and dividend income in the long run. With the TFSA contribution limit set at $7,000 for 2025, investors could consider investing in fundamentally strong TSX stocks with the potential to grow significantly in the long term.
Against this background, here are three TSX stocks worth considering now.
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Aritzia stock
Aritzia (TSX:ATZ) is one of the high-quality Canadian stocks TFSA investors could consider buying. This fashion retailer has consistently delivered double-digit revenue and earnings growth since fiscal 2016, thanks to its focus on exclusive fashion brands, boutique expansion, presence in high-growth markets, and efficient supply chain. As a result, its stock has gained over 76% in one year and over 195% in the past five years.
The momentum in Aritzia’s business will likely sustain as it focuses on bringing newness to its offerings and increasing its presence in prime retail locations. Further, Aritzia’s new boutique openings will likely expand its retail space, strengthen brand recognition, and boost revenue. The company aims to open 8 to 10 new boutiques annually in the U.S. through fiscal 2027 and projects its revenue to increase at a compound annual growth rate (CAGR) of 15–17% during the same timeframe.
Meanwhile, its thriving e-commerce business and expansion of omnichannel capabilities will further accelerate its growth. Leverage from higher sales and Aritzia’s focus on operational efficiency and cost management will support its profitability, driving its share price higher.
WELL Health stock
TFSA investors could also consider WELL Health (TSX:WELL) stock to grow their wealth tax-free. This digital healthcare company is rapidly growing its top line and focusing on improving its profitability. Further, its focus on strategic acquisitions and growing patient visits on its omnichannel platform augurs well for growth.
WELL Health operates within the defensive healthcare sector, which provides stability. Further, its business does not rely on cross-border sales, which makes it immune to the uncertainty related to the U.S. tariffs on Canada.
The health tech is expanding its network across its omnichannel healthcare platforms and strengthening its position as a leader in the digital healthcare space. As it scales its operations further through acquisitions, it expects to generate solid revenue from its Canadian operations. At the same time, the company is reducing debt and strengthening its balance sheet. Despite its impressive growth trajectory, WELL Health stock remains attractively priced on the valuation front, making it a compelling investment for long-term investors.
Shopify stock
Shopify (TSX:SHOP) is another high-quality TSX stock that TFSA investors could consider buying now. This Canadian tech company has been delivering impressive revenue growth, driven by a solid increase in gross merchandise volume (GMV), a key indicator of e-commerce growth. Shopify’s GMV growth increased by 24% in 2024, the highest growth achieved in three years. The company’s profitability is also improving, with operating income growing significantly. It has also recorded nine consecutive quarters of positive free cash flow.
The momentum in Shopify’s business will continue as it attracts large global brands to its platform. With more businesses embracing Shopify’s integrated platform and its expanding suite of products, the company is well-positioned to capitalize on the digital shift. Additionally, the increasing adoption of Shopify’s payment solutions further strengthens its growth prospects.
Shopify is broadening its reach through international expansion, offline retail, and B2B channels. These areas provide significant growth potential. Moreover, its shift toward an asset-light business model and usage of artificial intelligence (AI) will enhance operational efficiency and drive long-term profitability.
