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

Author Bio

Robin Brown has been a regular contributor to The Motley Fool Canada since January 2020. He began investing in 2009, during the depths of the global financial crisis, and has continued to refine his approach over the years. His investment philosophy emphasizes patience, quality, and identifying businesses with the potential to create lasting value. Robin currently lives in St. Albert, Alberta, where he manages a portfolio of Western Canadian industrial properties and private investments. Having lived in Canada, Norway, and Australia, he brings a broad perspective to his work and investing. Outside of work, Robin enjoys traveling, hiking, hunting, fishing, biking, and cooking for his wife, two daughters, and son.

Education

Bachelor's degree in Theology
Advanced Diploma in Business Management

Areas of Expertise

Dividend investing, value investing, quality stocks, small-cap stocks, long-term investing, business fundamentals, balance sheet analysis, capital allocation, industrial real estate, and private investments.

Social Media Profiles

Favorite Investment Quote

"Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down." — Warren Buffett

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.