If you’re looking to build long-term wealth in your Tax-Free Savings Account (TFSA), choosing the right mix of Canadian stocks is crucial. The ideal stocks for a buy-and-hold strategy are those with solid fundamentals, consistent earnings, and long-term growth potential. In today’s environment of economic uncertainty and high interest rates, finding dependable, low-maintenance investments is more important than ever.
Here are three top Canadian stocks to buy and hold for life—perfect additions to any TFSA portfolio in 2025.
1. Royal Bank of Canada (TSX:RY) – A Dividend Powerhouse
When it comes to blue-chip Canadian dividend stocks, Royal Bank of Canada (RBC) is a perennial favorite. As Canada’s largest bank by market capitalization, RBC has a proven track record of financial stability, consistent dividends, and strong earnings.
In Q2 2025, RBC reported:
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Net income of $4 billion (up 7% YoY)
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Record capital markets revenue of $3.84 billion
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Strong growth in personal and commercial banking
With a generous annual dividend yield of 4.1% (approx. $6.16 per share) and a history of dividend growth, RBC is ideal for TFSA investors seeking passive income and long-term capital appreciation.
Why buy?
✅ Defensive stock during volatility
✅ Long-term compounder
✅ Tax-free dividend income in TFSA
2. Shopify Inc. (TSX:SHOP) – A Growth Stock with Global Potential
If you want to balance your TFSA with high-growth Canadian stocks, Shopify is a strong contender. Known as one of Canada’s leading tech stocks, Shopify has been scaling rapidly while improving profitability.
Highlights from Q1 2025:
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Revenue of US$1.9 billion (up 23% YoY)
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Gross merchandise volume (GMV) surged 25% to US$65 billion
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Net income of US$273 million (US$0.21 per share)
Shopify has transitioned from rapid expansion to sustainable growth, optimizing its expenses while broadening its e-commerce ecosystem. For long-term investors, this could mean massive upside potential—all while enjoying tax-free capital gains inside a TFSA.
Why buy?
✅ Proven tech leader with global reach
✅ Positive earnings momentum
✅ Explosive long-term growth in e-commerce
3. Element Fleet Management (TSX:EFN) – A Hidden Gem for Steady Returns
Element Fleet Management may fly under the radar, but it’s a reliable income-generating stock with strong fundamentals. As the world’s largest pure-play fleet management company, Element operates across Canada, the U.S., Mexico, Australia, and New Zealand.
In Q1 2025, Element posted:
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Net revenue of US$276 million (up 5% YoY)
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Adjusted operating income of US$151 million
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55% recurring services revenue + 40% net financing revenue
With a forward dividend yield of 1.5% and a quarterly payout of $0.13 per share, Element offers steady income backed by a capital-light, scalable business model. It’s well-positioned to capitalize on the growing trend of outsourced fleet solutions.
Why buy?
✅ Stable cash flow from recurring revenue
✅ Strong dividend support and buyback programs
✅ Niche market leader with global growth runway
Final Thoughts: Build a Bulletproof TFSA Portfolio
Whether you’re seeking stable dividend income, high-growth opportunities, or steady compounders, these three Canadian stocks bring balance to a TFSA investment strategy:
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✅ Royal Bank of Canada for safety and reliable dividends
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✅ Shopify for innovation and long-term capital growth
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✅ Element Fleet Management for consistent cash flow and niche exposure
There are no guarantees in investing, but buying high-quality companies with strong fundamentals and future growth potential gives you a serious edge. Add these to your TFSA watchlist for 2025, and let them grow—tax-free and worry-free.
Also read : Canadian stocks to buy 2025
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