The TSX Stock I’d Most Want to Hold Forever – Especially Inside a TFSA

Some growth stocks are great for short-term gains, while others are built to compound wealth steadily over time. But the real winners for long-term investors are often those dependable businesses that can grow earnings, pay consistent dividends, and adapt as market drivers change. When you find a business like that, it makes sense to hold it for years – especially inside a Tax-Free Savings Account (TFSA), where your returns can grow without tax.

One stock that fits this description well right now is Manulife Financial (TSX:MFC). As a global financial services company, it offers life and health insurance, wealth management services, and retirement solutions. With diversified operations across Canada, Asia, Europe, and the United States, it benefits from a well-diversified business model that supports long-term stability.

Why Manulife Financial stands out for long-term investors

Manulife Financial’s stock currently trades at $48.57 per share with a market cap of $81.4 billion. Over the last 12 months, MFC stock has gained 5%, showing steady performance despite escalating geopolitical tensions and the uncertain macroeconomic environment. At this market price, it also offers a 4% dividend yield, paid quarterly, which provides reliable income for investors.

For those holding the stock inside a TFSA, these dividends can compound over time without being taxed, making the long-term benefits even more attractive.

Analyzing key factors behind its strong performance

Manulife’s stable performance has been supported by strong business fundamentals. In 2025, the company reported record core earnings of $7.5 billion, up 3% on a constant exchange rate basis compared to 2024.

Its insurance sales have also been a major driver as its annualized premium equivalent (APE) sales rose 14% for the year, while the company’s new business contractual service margin (CSM) increased 28%, and new business value (NBV) grew 18%. Expansion into new markets, including India, and growth in high-net-worth offerings in Dubai have also contributed to its performance.

As a result, Manulife continues to deliver solid financial results. In the fourth quarter of 2025, the company’s core earnings climbed 5% year-over-year to $2 billion. Similarly, its core earnings rose 9% to $1.12 per share, while diluted earnings came in at $0.83 per share. The company’s core return on equity (ROE) stood at 17.1% in the quarter, reflecting strong profitability and efficient capital use.

Focus on long-term growth initiatives

It is important to note that Manulife is actively investing in its future. One important move is its share buyback program, which allows the company to repurchase up to about 2.5% of its outstanding shares. This supports enhanced shareholder value while maintaining strong capital levels.

The company is also investing heavily in technology as it’s using artificial intelligence (AI) to improve efficiency across operations, from streamlining processes in Asia to helping advisors in Canada with personalized client communication. AI is also improving its investment research within its global wealth and asset management division.

Strong future outlook

Manulife’s expansion into emerging markets like India offers significant long-term opportunities. At the same time, its focus on digital transformation and AI should continue to improve efficiency and customer experience. That’s why Manulife Financial clearly combines stability, income, and long-term growth potential in a way that few stocks can. For those building long-term wealth, especially within a TFSA, Manulife looks like a solid stock that could be worth holding forever.

The post The TSX Stock I’d Most Want to Hold Forever – Especially Inside a TFSA appeared first on The Motley Fool Canada.

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More reading

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• 2 Dividend Stocks to Hold for the Next 5 Years
• 3 Canadian Blue-Chip Stocks to Hold Through 2026 and Beyond

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.