The One Canadian Stock Worth Holding Indefinitely in a TFSA

For long-term investors using a Tax-Free Savings Account (TFSA), choosing a core holding that you’re comfortable owning “forever” can be one of the most powerful decisions you make. A stock that fits this profile doesn’t have to be flashy or speculative — it needs to be a durable, well-managed business with predictable cash flow, a strong competitive position, and the ability to compound earnings over decades. One Canadian company exemplifies these qualities and stands out as a stock worth holding indefinitely inside a TFSA.

What makes a stock suitable for perpetual ownership isn’t just past performance — it’s the underlying business resilience and long-term growth prospects. The ideal company in this context has multiple durable revenue streams, operates in sectors less prone to disruption from economic cycles, and consistently generates free cash flow that management can use to reinvest in growth, pay dividends, or repurchase shares. In a TFSA, where dividends and capital gains are tax-free, these cash flows compound without tax drag, enhancing the total return over time.

This particular Canadian stock checks those boxes. It operates in a sector that will remain essential regardless of macroeconomic conditions, with products and services that everyday consumers and businesses continue to need. That stability underpins consistent earnings and strong balance-sheet fundamentals, creating a foundation for uninterrupted dividend growth. Companies that reliably raise dividends demonstrate confidence in future earnings, which in turn makes their stock attractive for long-term investors focused on income and capital appreciation.

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Another critical reason this stock is ideal for lifetime TFSA holders is its competitive advantage or “moat.” A sustainable moat — whether through brand strength, scale, regulatory barriers, or distribution reach — helps a company defend market share and maintain pricing power. Over decades, these advantages compound into higher returns for shareholders, especially when paired with disciplined capital allocation and reinvestment.

Valuation does matter, of course, but for investors focused on a long horizon, short-term price fluctuations are noise rather than signal. A company that continues to grow earnings and dividends over time will usually see its share price reflect that progress. Inside a TFSA, there’s no need to worry about taxes on dividends or gains, which makes holding high-quality businesses like this especially efficient.

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In summary, the stock worth owning “forever” in a TFSA is one with a durable business model, consistent free cash flow, a strong competitive position, and disciplined management. Such a company provides both income and long-term growth potential, making it a logical centerpiece for a tax-free, buy-and-hold strategy. If you’d like specific valuation metrics to help you decide when to buy more or how to size this position, I can provide those next.