The Only 2 Canadian Stocks Investors Will Ever Need

If you want two Canadian stocks you can buy in a Tax-Free Savings Account (TFSA) and forget, focus on compounding, not hype. A true “hold forever” pick keeps solving a real problem, reinvests cash with discipline, and stays flexible when the economy turns. It also spreads risk across many customers or assets, so one bad quarter cannot wreck the story. Dividends help, but the TFSA superpower comes from letting growth and reinvested payouts stack up tax-free, year after year. So let’s look at two solid, and related, options.

BN

Brookfield (TSX:BN) earns that label as it sits at the centre of an investing ecosystem. It owns stakes in long-life operating businesses and it holds the controlling interest in Brookfield Asset Management (TSX:BAM), which collects fees for managing money. That mix gives it exposure to infrastructure, renewables, real estate, credit, and private equity in one ticker. Over the past year, shares have been up 20%, and over the last five up 145%. This shows what patience can do when the business keeps finding new lanes for growth.

Right now, Brookfield looks relevant as it keeps building earnings power while it keeps dry powder ready. In results for the quarter ended September 30, 2025, it reported distributable earnings before realizations of US$1.3 billion, or US$0.56 per share, and total distributable earnings of US$1.5 billion, or US$0.63 per share. Management also highlighted deployable capital of US$178 billion, which gives it room to buy assets when pricing looks attractive and support its listed affiliates when markets tighten.

Valuation can confuse people here, so keep it simple and stay humble. Right now, it trades at a trailing 133 times earnings, so not cheap, and with a 0.50% dividend yield. Those figures look lofty, but accounting earnings swing around in a holding company with realizations and fair-value moves. The real risk sits in leverage, deal timing, and any shock that hits commercial real estate or credit markets at the wrong moment. You need the stomach to watch it wobble around.

BAM

Brookfield Asset Management offers a cleaner “forever” story as it sells investment management at scale. It runs funds across infrastructure, transition, real estate, private equity, and credit, then it earns fees for years. That business can feel dull on quiet days, but it can compound relentlessly when assets under management grow. In fact, in the last year shares might be down 5%, but over the last five it’s been far higher at 155%.

The latest results show why long-term investors keep it on the shortlist. For the quarter ended Sept. 30, 2025, BAM reported fee-related earnings of US$754 million and distributable earnings of US$661 million, or US$0.41 per share, and it reported net income attributable to BAM of US$724 million. Management also pointed to record fundraising of US$30 billion in the quarter, and it highlighted demand for strategies tied to infrastructure and the buildout behind artificial intelligence (AI) and electrification.

You still need to respect the price you pay for a fee engine. It currently trades at 34.5 times earnings, with a 3.3% dividend yield as well. That valuation can work if fundraising and margins hold, but it can sting if markets freeze. Fundraising can slow, performance fees can arrive in waves, and regulators can tighten the screws on private markets. Even so, the model keeps spitting out cash and it can keep raising the base of fee revenue.

Bottom line

Together, BN and BAM make a strong “hold forever” pairing as both attack the same theme from two angles. BN owns the broader machine and benefits from capital recycling and operating cash flows, while BAM drives fee growth and pays a more visible dividend. If you reinvest the dividends inside a TFSA, you also buy more shares when the market offers discounts. Here’s what $7,000 in both could bring in right now.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTBAM$74.5093$2.40$223.20Quarterly$6,938.50BN$65.48106$0.33$34.98Quarterly$6,940.88

That habit matters more than perfect timing. Split your contributions across both, add regularly, and let compounding do the heavy lifting over the next decade.

The post The Only 2 Canadian Stocks Investors Will Ever Need appeared first on The Motley Fool Canada.

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More reading

• 5 TSX Stocks to Hold for the Next Decade
• Why I’m Letting This Unstoppable Stock Ride for Decades
• The Ideal Canadian Stocks to Buy and Hold Forever in a TFSA
• Outlook for Brookfield Stock in 2026
• 1 Canadian Stock I’d Trust for the Next 10 Years

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield. The Motley Fool recommends Brookfield Asset Management and Brookfield Corporation. The Motley Fool has a disclosure policy.