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

Many new investors enter the stock market with very unrealistic expectations, often chasing quick wins without truly understanding what drives long-term growth. But Tax-Free Savings Account (TFSA) investing doesn’t need to be complicated. It’s actually the simplest strategy that works best. Buying dependable businesses with real cash flows, strong performance, and room to grow can go a long way in building tax-free wealth. That way, your TFSA becomes more than just a savings account and turns into a powerful growth engine that could work for you for decades.

In this article, I’ll highlight two of the best Canadian stocks that look ideal for a buy-and-hold strategy inside your TFSA.

Brookfield stock

To anchor a TFSA with growth that plays out over decades, Brookfield Corporation (TSX:BN) is worth considering. It’s a global investment firm focused on alternative asset management and wealth solutions, and operating businesses across renewable power, infrastructure, private equity, and real estate.

BN stock is currently trading at $62.87 per share with 14% year-to-date gains, giving it a market cap of about $155.7 billion. The company also rewards investors with quarterly dividends, offering an annualized yield of roughly 0.5%.

Recent pressure in the stock price largely reflects broader economic swings rather than company-specific weakness. Brookfield’s distributable earnings before realizations climbed 18% over the last 12 months to US$5.4 billion, with the help of record fee-related earnings in its asset management and continued growth in wealth solutions. In the third quarter alone, the company’s fee-related earnings rose 17% YoY (year-over-year), backed by strong fundraising and higher fee-bearing capital.

Clearly, growth trends remain healthy across Brookfield’s operations as its operating businesses delivered resilient cash flows, while asset monetizations continued at or above carrying values.

What makes BN stock especially attractive for a TFSA is its long-term strategy. With US$178 billion in deployable capital, expanding private credit through Oaktree, and large-scale investments in energy transition and artificial intelligence (AI) infrastructure, Brookfield appears to be on track for durable growth over the coming decades.

Royal Bank of Canada stock

While Brookfield adds global asset exposure, balancing it with a dominant Canadian financial institution like Royal Bank of Canada (TSX:RY), or RBC, could bring added stability to your TFSA portfolio. As the country’s largest bank, Royal Bank has operations spanning personal banking, commercial banking, wealth management, capital markets, and insurance.

Following a 31% year-to-date rally, RY stock is currently trading at $228.29 per share and carries a market cap of roughly $319.6 billion. RBC also pays a quarterly dividend with an annualized yield of about 2.9%.

The recent strong momentum in Royal Bank’s stock could mainly be attributed to its improving earnings, disciplined cost control, and solid credit performance. For its fiscal year 2025 (ended in October), RBC’s net income jumped 25% YoY to $20.4 billion. For the year, its revenue growth was mainly driven by higher net interest income, strong capital markets activity, and continued expansion in the wealth management segment.

Overall, RBC’s long-term strength lies in its diversified earnings base, trusted brand, and ability to return capital to shareholders. With rising dividends, consistent share buybacks, and a revised return-on-equity target of 17% or higher, Royal Bank remains a top Canadian stock for TFSA investors seeking stable, tax-free income and growth.

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

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More reading

• 2 Blue-Chip Stocks to Buy in a TFSA and Hold for Life
• TSX Is Beating Wall Street This Year, and Here Are Some of the Canadian Stocks Driving the Rally
• The Sole 2 Canadian Stocks to Hold Forever
• Here’s the Average TFSA Balance at Age 40 in Canada
• 5 Reasons to Buy and Hold This Canadian Stock Forever

Fool contributor Jitendra Parashar has positions in Brookfield. The Motley Fool has positions in and recommends Brookfield. The Motley Fool recommends Brookfield Corporation. The Motley Fool has a disclosure policy.