Canadian Stocks to Hold Forever for Long-Term Growth

The Tax-Free Savings Account (TFSA) is one of Canada’s most valuable investment tools, especially for long-term growth. This account allows investors to set aside capital for the future and watch it grow tax-free, making it an ideal vehicle for young investors looking to build wealth over time. Unlike other retirement accounts, such as the Registered Retirement Savings Plan (RRSP), any capital gains or investment growth in a TFSA are completely tax-exempt, offering a significant advantage. Much like the U.S.’s Roth IRA and similar global retirement accounts, the TFSA is perfect for those looking to maximize their returns over the long haul.

With the TFSA contribution limit set at $7,000 for 2025, it’s a great opportunity to put your next $7,000 into high-quality growth stocks. Here are two top Canadian stocks that should be on your radar.

Constellation Software (TSX:CSU)

Constellation Software is a top-tier growth stock that consistently delivers exceptional results. As a leader in the software sector, Constellation is strategically positioned for long-term growth. The company has grown by acquiring and integrating a wide range of software businesses, creating a structure that drives impressive returns. It operates almost like an incubator, investing in early-stage companies to unlock massive growth potential.

For those who are bullish on the future of Canadian tech stocks, Constellation is a strong choice. Its consistent long-term stock performance speaks volumes about the sustainability and scalability of its business model. As the world continues to rely more on technology, Constellation is well-positioned to lead the charge in providing essential software solutions.

TMX Group (TSX:X)

TMX Group, the parent company of the TSX exchange, is another excellent growth stock that deserves more attention. With a clear and easy-to-understand business model—profit grows as investor activity increases—TMX is poised for continued success. The company facilitates markets across equities, fixed income, and commodities in Canada, earning substantial fees from new listings and trading volume.

As Canada’s financial system continues to evolve, TMX Group stands to benefit from the increasing financialization of the economy. Even amid market volatility, the company has posted impressive double-digit growth in both revenue and profits, showing resilience and strength. TMX’s stock, trading at about 30 times earnings, offers a solid investment opportunity for those looking for a combination of growth and stability in uncertain times.

Both Constellation Software and TMX Group are strong, defensible growth stocks that are well-suited for TFSA investors. With their strong market positions and impressive growth prospects, these companies are ideal candidates for long-term wealth-building in Canada’s tax-free investment space.