Two Canadian Stocks Built for Decades of Compounding Growth

For investors seeking long-term wealth creation, a Tax-Free Savings Account (TFSA) remains one of the most effective tools available. Its structure allows high-quality stocks to compound uninterrupted, with every dollar of appreciation, dividend income, and reinvested gains shielded from taxes. When your goal is to hold investments for decades, eliminating annual tax drag significantly accelerates long-term outcomes. Within that context, two Canadian companies stand out as durable, growth-oriented positions suited for lifelong ownership.

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One leading candidate is TFI International, a dominant North American transportation and logistics operator. The company has expanded far beyond its origins through a disciplined acquisition strategy rooted in operational improvement and cash-flow enhancement. By acquiring underperforming assets, optimizing them, and deploying the resulting cash into the next strategic purchase, TFI has consistently widened its competitive moat. Its business spans parcel delivery, less-than-truckload services, truckload operations, and logistics solutions, creating revenue diversification that allows it to remain resilient in both strong and weak economic environments.

The long-term investment case for TFI is reinforced by structural trends. Supply chains continue to grow more complex, reshoring activity is rising, and e-commerce demand remains elevated. Firms with scale, pricing power, and operational efficiency—qualities TFI has repeatedly demonstrated—are positioned to benefit. Management’s disciplined capital allocation, including ongoing share repurchases and sustainable dividend growth, provides additional support for long-term compounding.

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Another strong candidate is Capital Power, a North American electricity producer with a portfolio designed for stability and modernization. Electricity demand remains constant regardless of market cycles, making the industry naturally resilient. Capital Power continues to expand its asset base through renewable projects, strategic acquisitions, and modernization initiatives. Long-term contracts underpin predictable cash flow, supporting a dividend that is both meaningful and backed by fundamental earnings strength.

While regulatory and interest-rate risks exist, the company has shown the adaptability needed to navigate evolving energy markets. Its blend of income generation, reinvestment opportunities, and steady demand fundamentals make it a compelling long-term holding.

Together, these two companies offer durability, cash-flow strength, and multi-decade relevance—qualities essential for investors aiming to maximize tax-free compounding inside a TFSA.