This Recession-Resistant TSX Stock Can Last for a Lifetime in a TFSA

A recession-resistant stock usually earns money from things people can’t easily cut out of their lives, even when budgets tighten. Think everyday banking, utilities, food, or essential services that keep running regardless of the economy. These companies tend to have diversified revenue, strong balance sheets, and long histories of surviving downturns without cutting dividends. Inside a Tax-Free Savings Account (TFSA), that resilience matters even more, because steady income that keeps flowing through recessions can quietly compound into lifetime wealth. All without the drag of taxes or the stress of having to sell assets at the wrong time.

TD

At first, Toronto-Dominion Bank (TSX:TD) might not seem like a TSX stock that can withstand a recession. However, TD stock is one of Canada’s largest and most diversified banks, with a massive footprint on both sides of the border. It earns money from personal and commercial banking, wealth management, and capital markets. This gives it multiple income streams that don’t all move in the same direction at once.

TD stock is especially known for its strong retail banking presence in the U.S., where its branch network stretches down the East Coast. That cross-border exposure adds long-term growth potential. All while keeping the core business grounded in boring, repeatable banking activities that don’t disappear in tough times.

Into earnings

What sets TD stock apart culturally is its conservative approach to risk. The bank has historically been cautious with lending, capital deployment, and balance-sheet management. This helps explain why it tends to come through economic shocks in better shape than many peers. For long-term investors, that steadiness is often more valuable than flashy growth. TD’s business doesn’t rely on speculation or one hot segment; it relies on millions of customers depositing money, borrowing responsibly, and paying fees year after year.

In its most recent earnings, TD stock reported solid underlying performance despite a challenging backdrop for banks. Net interest income remained resilient, credit quality held up well, and the bank continued building capital as it worked through regulatory and operational headwinds. While loan-loss provisions increased modestly, that move reflected prudence rather than stress, as TD stock prepared for a slower economy. Core Canadian banking results stayed stable, supported by everyday lending and deposit activity.

A recession win

Management also emphasized balance-sheet strength and long-term discipline during the quarter. TD stock maintained a strong capital ratio, giving it flexibility to protect its dividend and eventually return more capital to shareholders once uncertainty fades. While near-term headlines have created volatility in the share price, the earnings themselves showed a bank that is still generating consistent profits from its core businesses. For patient investors, that gap between sentiment and fundamentals often creates opportunity.

TD stock could be a recession-resistant TSX stock that lasts a lifetime in a TFSA as its dividend is built on stability, not optimism. The bank has paid dividends for well over a century, cutting them only in extraordinary circumstances, and it typically resumes growth once conditions normalize. Its diversified earnings, conservative risk culture, and essential role in the Canadian economy make cash flow far more predictable than for most businesses. Inside a TFSA, that means dependable, tax-free income that can be reinvested through downturns and enjoyed later in life.

Bottom line

Over decades, TD stock’s real strength shows up not in any single quarter, but in its ability to keep paying investors while others struggle. Recessions come and go, but people still need mortgages, chequing accounts, credit cards, and savings products. And that helps support its dividend. In fact, here’s what $7,000 could bring in even now.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDEND TOTAL ANNUAL PAYOUTFREQUENCYTOTAL INVESTMENTTD$126.6055$4.32$237.60Quarterly$6,963.00

In short, TD stock sits at the centre of that system. For investors building a TFSA meant to last a lifetime, owning a bank that quietly compounds through every economic cycle can be one of the simplest and most effective strategies available.

The post This Recession-Resistant TSX Stock Can Last for a Lifetime in a TFSA appeared first on The Motley Fool Canada.

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• What’s Going on With TD Bank After Q4 Earnings

Fool contributor Amy Legate-Wolfe 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.