The Best Canadian Stocks to Buy and Hold Forever in a TFSA

To build lasting wealth, you may want to forget chasing short-term market trends or quick wins. One of the simplest and most effective strategies for Foolish Investors is to invest in great companies and hold them for the long term.

That’s how compounding works best. By staying invested, reinvesting dividends, and ignoring short-term market noise, you give your money time to grow. A Tax-Free Savings Account (TFSA) makes this even more powerful by shielding your gains from taxes. But the key is choosing the right stocks to hold inside it. In this article, I’ll highlight two such Canadian stocks TFSA investors can buy now and hold forever.

Metro stock

Metro (TSX:MRU) is a well-known retailer in Canada’s grocery and pharmacy sector. It operates nearly 1,000 food stores and about 640 pharmacies across Quebec and Ontario under banners like Metro, Food Basics, and Jean Coutu. MRU stock currently trades at $94.12 per share with a market cap of $19.9 billion.

The company has delivered stable long-term returns, gaining 29% over three years and 64% over five years. While ongoing geopolitical tensions have driven its stock down 5% so far in 2026, that could present a buying opportunity for long-term investors. Metro stock also pays a quarterly dividend of $1.63 per share, with a yield of 1.7%.

In the first quarter of 2026 (ended in December), Metro continued to perform well despite a challenging economic environment. It also announced a $350 million senior unsecured notes offering, which will help repay debt and support future growth.

To accelerate its financial growth further, Metro is also focused on expanding its e-commerce operations, improving supply chain efficiency, and growing its private label offerings. These initiatives should support steady earnings growth over time and propel the stock in the long run.

Magna International stock

Magna International (TSX:MG) is a global automotive supplier that designs and manufactures a wide range of vehicle components and systems. It works with major automakers around the world. MG stock currently trades at $75.50 per share with a market cap of $20.9 billion.

Despite some recent volatility, Magna has delivered solid long-term performance. While the stock is down about 21% from its 52-week high, it has rebounded strongly from its lows. At the current market price, Magna also offers a quarterly dividend of $2.71 per share, resulting in a 3.6% yield.

In the fourth quarter of 2025, the company posted a 2% YoY (year-over-year) increase in its sales to US$10.8 billion. For the quarter, its adjusted EBIT (earnings before interest and taxes) also rose 18% YoY to US$814 million, showing improving profitability.

Meanwhile, Magna continues to invest in innovation, including new technologies like its hybrid drive system designed to improve electric vehicle performance.

With growing demand for electric vehicles and advanced driver-assistance systems, Magna is well-positioned for long-term growth. Its global presence and diversified product portfolio add to its strength.

The bottom line

Overall, Metro and Magna International offer a great mix of stability and long-term growth potential. Both companies have strong fundamentals and clear strategies for the future. For TFSA investors, holding quality businesses like these over the long term can be a powerful way to build wealth.

The post The Best Canadian Stocks to Buy and Hold Forever in a TFSA appeared first on The Motley Fool Canada.

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More reading

• The Sectors Where Canada Actually Beats the United States
• The Average TFSA Balance for Canadians at 50 — and 3 Stocks to Close the Gap
• The Best Canadian Stocks to Own During a Trade War
• 3 Dividend Stocks That Could Help You Sleep Better in 2026
• A Deeply Undervalued TSX Stock Down 17.5% Worth Holding Long Term

Fool contributor Jitendra Parashar has positions in Magna International. The Motley Fool recommends Magna International. The Motley Fool has a disclosure policy.