Best Canadian stocks to buy in 2025 amidst tariff worries

In this article, we will discuss the Best Canadian stocks to buy in 2025 amidst tariff worries

If you’re aiming to build a Tax-Free Savings Account (TFSA) that quietly grows in the background for years to come, the key is to focus on reliability rather than excitement. The best long-term TFSA picks are companies with durable business models, strong balance sheets, consistent dividends, and the ability to thrive through economic ups and downs. They’re not flashy, but they’re dependable. If I had to choose the best Canadian stocks to buy in 2025 amidst tariff worries, Toromont Industries (TSX:TIH), Canadian National Railway (TSX:CNR), and Manulife Financial (TSX:MFC) would be my top picks.

Toromont Industries (TIH): A Quiet Industrial Powerhouse

Toromont might fly under the radar, but it plays a critical role in Canada’s industrial ecosystem. As a leading dealer of Caterpillar equipment and a key player in industrial refrigeration through its CIMCO division, Toromont supports major sectors like construction, mining, and food storage.

In Q1 2025, Toromont generated $1.09 billion in revenue—up 7% year over year—driven by a 17% jump in equipment sales and 11% growth in rentals. While net income dipped 11% to $74.4 million due to narrower margins and product mix, the company still delivered $0.92 in earnings per share. The business remains fundamentally strong and steady.

Where Toromont truly stands out is its dividend track record. It has paid dividends for 56 consecutive years, increasing its payout most recently from $0.48 to $0.52 per share. In a TFSA, where dividends grow tax-free, that kind of consistency is a valuable asset.

Canadian National Railway (CNR): Owning a Piece of Canada’s Trade Network

CNR isn’t just a railway operator—it’s part of the backbone of Canada’s economy. With a network that stretches from coast to coast and deep into the U.S., CNR moves the goods that keep industries running, from grain and fuel to manufactured goods.

The company posted $4.4 billion in revenue in Q1 2025, up 4% year over year, with operating income also rising 4% to $1.61 billion. Earnings per share grew 8% to $1.85, and its operating ratio—a key efficiency metric—improved to 63.4%. It also generated $626 million in free cash flow and plans to invest $3.4 billion in infrastructure upgrades this year.

CNR aims to grow its adjusted earnings by 10–15% in 2025 and has a long-standing practice of increasing dividends. The current quarterly dividend is $0.845 per share. Over time, those tax-free dividends in a TFSA can compound meaningfully.

Manulife Financial (MFC): Stable Income and Global Diversification

As one of Canada’s largest insurance and wealth management companies, Manulife offers a blend of dependable income and global growth. Its operations span Canada, the U.S., and several Asian markets, giving it broad geographic diversification.

Manulife is expected to report strong Q1 2025 earnings, with forecasts around $0.98 per share, following a beat in the previous quarter. The company pays an annual dividend of $1.76 per share, translating into a yield of roughly 4.08%—an excellent source of tax-free income inside a TFSA.

In addition to its reliable insurance business, Manulife continues to grow its asset management arm while returning capital to shareholders through share buybacks and dividend increases.

The Long-Term Strategy

Together, these three stocks provide balanced exposure to essential sectors—industrial services, transportation infrastructure, and financials and are considered as the best Canadian stocks to buy in 2025 amidst tariff worries. Each company is backed by decades of operational consistency, strong financials, and shareholder-friendly policies. They may not grab headlines, but they’re exactly the kind of businesses you can buy, tuck away in a TFSA, and confidently hold for decades to come—letting time, compounding, and tax-free growth do the heavy lifting.