The Only Stock I’d Hold in a TFSA for Life

Choosing just one stock to hold inside a Tax-Free Savings Account (TFSA) forever sounds almost impossible. Most companies excel in one area but fall short in another. High-growth stocks often come with elevated risk, while dependable dividend stocks sometimes struggle to deliver strong capital appreciation. The ideal long-term investment sits somewhere in the middle, combining durable cash generation with enough growth to keep creating value over many market cycles.

That is why the TSX stock I’d be most comfortable holding in a TFSA for life is Canadian Natural Resources (TSX:CNQ). While this Calgary-based energy producer is not a very quiet stock, because oil and gas prices sometimes move around, its solid asset base, operating discipline, and shareholder-return record make it one of the most compelling long-term Canadian energy stocks for TFSA investors. Let’s take a closer look.

A TFSA stock built on scale

To put it simply, Canadian Natural is involved in exploration and production (E&P), oil sands mining, upgrading, refining, and marketing across Western Canada, the North Sea, and offshore Africa. That broad base gives it multiple ways to generate cash rather than relying on one project or region.

CNQ stock has climbed 31% over the last year, even after falling 10% in the last month. As a result, the stock now trades at $56.12 per share, giving it a market cap of about $116.5 billion. It also offers a 4.5% dividend yield with quarterly payouts.

That recent monthly pullback in this TFSA-friendly stock is worth noting, but it does not erase its longer-term strength. For investors who use a TFSA to hold dependable compounders, this temporary dip in such a proven business could be seen as a buying opportunity.

Recent results still look sturdy

In the first quarter of 2026, the company generated net earnings of $1.3 billion and adjusted net earnings from operations of $2.4 billion. It also delivered record quarterly North American E&P production of 773,000 barrels of oil equivalent per day, including liquids production of 329,000 barrels per day (bbl/d) and natural gas production of 2,668 million cubic feet per day.

Similarly, its oil sands mining and upgrading business continues to show strength. The segment reported operating costs of $23.70/barrel, or US$17.30/barrel, for synthetic crude oil. That cost discipline helped the company return $1.5 billion to shareholders in the quarter, including $1.2 billion in dividends and $0.3 billion in share repurchases.

Why it could still work for decades

Interestingly, CNQ has raised its dividend for 26 consecutive years, with a compound annual growth rate of 20%. That record matters for TFSA investors because dividend income could compound tax-free when payouts are reinvested.

At the same time, the company is still making efforts to accelerate growth. Its near-term Conventional E&P assets offer drill-to-fill opportunities, while the 30,000 bbl/d Jackfish expansion and 70,000 bbl/d Pike 2 project could support medium-term production. Similarly, its longer-term projects include the 150,000 bbl/d Jackpine Mine expansion and 90,000 bbl/d Horizon In-Pit Extraction Plant and Paraffinic Froth Treatment expansion.

Those projects are not all moving ahead immediately, and Canadian Natural is waiting for better regulatory and fiscal clarity on some of the largest options. Still, having that inventory matters because it gives the company flexibility to invest when conditions are more attractive.

Overall, its scale, efficient operations, long dividend history, and deep project pipeline make it a great stock that could anchor a TFSA for investors who want income and long-term growth in one holding.

The post The Only Stock I’d Hold in a TFSA for Life appeared first on The Motley Fool Canada.

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* Returns as of June 15th, 2026

More reading

• How to Grow Your 2026 TFSA Contribution Into $70,000 or More
• 3 Canadian Blue-Chip Stocks to Hold Through 2026 and Beyond
• How to Use Your Annual TFSA Room to Double Your Contributions
• RRSP Investors: 3 TSX Dividend Stocks to Own for Decades
• Grab These Dividend Stocks Now Before Their Prices Rise and Yields Drop

Fool contributor Jitendra Parashar has positions in Canadian Natural Resources. The Motley Fool recommends Canadian Natural Resources. The Motley Fool has a disclosure policy.