Two Canadian Stocks Poised for Multi-Decade Growth Inside a TFSA

For investors focused on building long-term, tax-efficient wealth, the Tax-Free Savings Account (TFSA) remains one of the strongest investment structures available in Canada. Gains inside the TFSA grow without taxes, allowing high-quality equities to compound unhindered for years. When your investment horizon spans decades, eliminating annual tax friction can meaningfully accelerate total returns. Within that framework, two Canadian companies stand out as durable, growth-ready holdings suitable for lifelong compounding.

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A leading contender is TFI International, a major player in North American transportation and logistics. The company has transformed itself from a domestic operator into a diversified logistics powerhouse through a disciplined acquisition strategy. Its model is straightforward but highly effective: purchase underperforming businesses, strengthen their operations, expand margins, and redeploy cash into the next strategic opportunity. This flywheel has allowed TFI to scale across parcel delivery, less-than-truckload, truckload operations, and broader logistics services. The broad business mix helps stabilize performance in both favorable and challenging economic conditions.

Long-term momentum for TFI is supported by structural economic shifts. Supply chains are becoming more complex, reshoring efforts are increasing, and e-commerce volumes remain elevated. Companies with established scale, pricing power, and operational discipline—attributes TFI consistently demonstrates—are positioned to outperform. Management enhances shareholder value through strategic reinvestment, share buybacks, and a steadily growing dividend, all of which reinforce its long-term compounding profile.

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Another strong long-term candidate is Capital Power, an electricity producer with a portfolio built for stability and modernization. Power demand remains steady regardless of economic cycles, providing essential cash-flow reliability. The company continues to expand through renewable developments, asset modernization, and selective acquisitions. Many of its assets operate under long-duration contracts, supporting predictable earnings and a well-protected dividend.

Although regulatory and interest-rate risks remain part of the industry, Capital Power has demonstrated the flexibility required to adapt to evolving energy markets. Its combination of recurring income, reinvestment opportunities, and dependable demand dynamics makes it a compelling addition to long-term portfolios.

Together, these two companies offer durability, cash-flow strength, and multi-decade relevance—qualities essential for maximizing tax-free compounding within a TFSA.