3 Canadian Stocks That Are the Best Buy and Holds in a TFSA

Buy-and-hold Tax-Free Savings Account (TFSA) winners share a few traits. You want a business that Canadians keep using in good times and bad, plus a model that can raise prices each year without losing customers. You also want execution you can track in quarterly results, not a story you need to defend at dinner. Inside a TFSA, that steadiness matters because tax-free compounding quietly rewards consistency, and it punishes panic selling. A good pick also lets you stay invested while you build contribution room year after year.

WCN

Waste Connections (TSX:WCN) earns its spot because it collects waste, runs transfer and disposal sites, and builds recycling and renewable fuels operations across North America, including six provinces in Canada. It sells a service customers rarely cancel, and it often works in exclusive or secondary markets that support disciplined pricing. The Canadian stock has cooled from its highs, making it now look like a solid buy.

In Q3 2025, Waste Connections grew revenue to US$2.5 billion and delivered adjusted earnings per share (EPS) of US$1.44. That result shows earnings power even as some volumes softened, because pricing and route density still do heavy lifting. It currently holds a trailing price to earnings (P/E) ratio near 69, so investors already pay up for quality. It also keeps investing in efficiency and recycling, which can widen the moat over time. The game plan rests on steady price increases, smart tuck-in deals, and disciplined costs, while fuel, labour, and permitting delays can still bite.

L

Loblaw (TSX:L) looks like a TFSA staple as it sells essentials through grocery banners and Shoppers Drug Mart, and it leans hard into value, loyalty, and convenience. Canadians trade down when budgets tighten, and Loblaw has the discount formats and points engine to capture that shift. The Canadian stock has climbed toward its highs, with shares up about 37% in the last year.

In Q3 2025, Loblaw grew revenue to $19.4 billion and posted diluted earnings per share (EPS) of $0.66. Management pointed to ongoing store and pharmacy expansion, and that keeps the growth engine moving even when shoppers tighten belts. Its private-label strength and loyalty ecosystem can also defend margins in choppy periods. Its P/E ratio sits around 30, so the valuation assumes Loblaw keeps executing. Food inflation, competition, and political scrutiny on pricing remain real risks, and these can pressure margins in any quarter.

DOL

Dollarama (TSX:DOL) adds a different flavour of durability. It runs discount stores across Canada and keeps expanding through Dollarcity in Latin America while it starts reshaping The Reject Shop platform in Australia. When households feel squeezed, they still shop, but trade to cheaper baskets, and Dollarama often wins that battle. The Canadian stock reflects that strength, with shares up 38% in the last year alone.

In fiscal 2026 Q3, Dollarama increased sales 22.2% to $1.9 billion and grew diluted EPS to $1.17. Management also raised its Canadian outlook ranges for comparable sales and gross margin, which supports a confident tone going into 2026. Continued store growth and the Dollarcity partnership can add fuel without relying on a boom cycle. Its P/E ratio is around 41, so investors pay a premium for that mix of growth and consistency. Yet currency swings, wage costs, and the pace of the Australia turnaround can still create bumps.

Bottom line

Together, these three Canadian stocks can anchor a TFSA that you actually hold. WCN gives you essential infrastructure with a runway for pricing and acquisitions. Loblaw gives you staples and pharmacy strength in a value-seeking country. Dollarama gives you a retailer that often thrives when life feels pricey. None of them needs a perfect economy to work, and that makes the TFSA experience calmer. If you want a portfolio you can forget about for months at a time, this trio checks a lot of boxes. Keep the plan simple, keep adding, and let time do the loud work.

The post 3 Canadian Stocks That Are the Best Buy and Holds in a TFSA appeared first on The Motley Fool Canada.

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More reading

• Dollarama Stock: Buy, Sell, or Hold in 2026?
• How I’d Invest $20,000 of TFSA Cash in 2026
• Canadian Defensive Stocks to Buy Now for Stability
• TFSA: 4 Canadian Stocks to Buy and Hold Forever
• Retire Richer With 2 Resilient Growth Stocks

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Dollarama. The Motley Fool has a disclosure policy.