TFSA: 4 Blue-Chip Stocks to Buy and Hold Forever

A tax-free savings account (TFSA) is an excellent vehicle for building long-term wealth, as it allows investors to earn tax-free returns on a prescribed investment amount, known as the contribution limit. However, investors must exercise caution when investing through a TFSA. Declines in stock prices followed by selling can not only erode capital but may also permanently reduce available contribution room.

Against this backdrop, let’s look at four Canadian blue-chip stocks that are well-suited for a TFSA.

Fortis

Fortis (TSX:FTS) is a leading electric and natural gas utility serving approximately 3.5 million customers through its largely regulated asset base. With most of its operations concentrated in low-risk transmission and distribution businesses, Fortis’s financial performance is less sensitive to economic cycles and market volatility. As a result, the company has consistently delivered strong operating results, supporting steady share price appreciation and dividend growth for 52 consecutive years. Over the past decade, Fortis has generated an average total shareholder return of 10.8%.

Looking ahead, Fortis plans to invest approximately $28.8 billion over the next five years to expand its rate base at a compound annual growth rate of 7%, reaching an estimated $57.8 billion. Alongside this capital program, ongoing initiatives to enhance operating efficiency should further support earnings growth and dividend sustainability. Notably, management expects to increase the dividend at an annualized rate of 4%–6% through 2030, reinforcing Fortis’s appeal as a high-quality, long-term TFSA investment.

Enbridge

Another stock I view as an excellent addition is Enbridge (TSX:ENB), which generates more than 98% of its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) from regulated or contracted assets. This structure significantly limits exposure to commodity price volatility, while roughly 80% of EBITDA is inflation-indexed, supporting stable earnings and dependable cash flows across economic cycles. Backed by this resilience, Enbridge has delivered an average total shareholder return of 10.7% over the past decade. The company has also paid dividends for 70 consecutive years and raised its dividend for 31 straight years, while currently offering an attractive forward dividend yield of approximately 6%.

Looking ahead, the Calgary-based energy infrastructure leader is advancing a $37 billion secured capital investment program, with about $10 billion earmarked for investment this year alone. These projects could enter service over the next four years, driving incremental earnings and cash flow growth. Supported by this visible growth pipeline, management expects to return $40–$45 billion to shareholders over the next five years, reinforcing Enbridge’s appeal as a core, income-generating TFSA holding.

Dollarama

Dollarama (TSX:DOL) is a leading discount retailer offering a broad range of consumer products at attractive prices, supported by its efficient logistics network and direct sourcing model. This advantage enables the Montreal-based company to deliver consistent same-store sales growth, largely independent of broader economic conditions. Alongside its steady store expansion, this resilience has driven exceptional performance, with total shareholder returns of approximately 755% over the past decade, or an annualized rate of 23.9%.

Looking ahead, Dollarama has aggressive expansion plans. It expects to expand its Canadian store network from 1,684 to 2,200 locations by fiscal 2034, while growing its Australian footprint from 401 to 700 stores over the same period. The company also benefits from its 60.1% stake in Dollarcity, which aims to increase its store count from 683 to 1,050 by fiscal 2031. Dollarama can further raise its ownership stake to 70% by 2027.

Backed by multiple growth drivers, Dollarama remains an excellent long-term TFSA investment.

Waste Connections

My final pick is Waste Connections (TSX:WCN), which has delivered an impressive total return of over 428% over the past decade, translating into an annualized return of 18.1%. The waste management company operates predominantly in secondary and exclusive markets across the United States and Canada, where it faces limited competition and benefits from higher margins. This positioning, combined with disciplined organic growth and strategic acquisitions, has consistently strengthened its financial performance and supported long-term share price appreciation.

Supported by a healthy balance sheet and robust free cash flow generation, WCN plans to maintain an active acquisition strategy. The company is also leveraging advanced technologies to improve operational efficiency and profitability, while lower voluntary employee turnover – driven by enhanced safety and engagement initiatives – continues to support margin expansion. Considering these factors, I remain bullish on WCN as a high-quality, long-term investment.

The post TFSA: 4 Blue-Chip Stocks to Buy and Hold Forever appeared first on The Motley Fool Canada.

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More reading

• Got $3,000 for a TFSA? 3 Reliable Canadian Stocks for Long-Term Wealth Building
• 2 Top Dividend Stocks for Long-Term Returns
• 3 Must-Own Blue-Chip Dividend Stocks for Canadians
• 1 Reason I’ll Never Sell This ‘Boring’ Utility Stock
• 3 Canadian Defensive Stocks to Buy for Long-Term Stability

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Dollarama, Enbridge, and Fortis. The Motley Fool has a disclosure policy.