If I were buying a stock for the next year, I could probably find plenty of interesting choices. But buying one to hold inside a Tax-Free Savings Account (TFSA) for the next 20 or 30 years is a very different and difficult decision. At that point, I’d care much less about what is popular today and much more about whether the business will still matter after the next recession and the next wave of technological change. Such businesses may not always look very exciting, but they usually are the easiest to hold when markets turn volatile.
In this article, I’ll share two top Canadian stocks I would feel comfortable buying today and holding in a TFSA for the rest of my investing life.
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Canadian National Railway stock
If you want to build a TFSA around businesses that could keep growing through multiple market cycles, you may want to begin with a stock like Canadian National Railway (TSX:CNR), or CN, that plays a critical role in the economy.
In short, this Montréal-based company operates one of North America’s largest transportation networks, providing rail, intermodal, trucking, and supply chain services. Its network would be incredibly difficult and expensive to replicate, giving CN an advantage that has been built over decades.
After rallying by 38% over the last 12 months, CN stock recently closed at $178.25 per share, giving the railway a market cap of $107.7 billion. The stock also offers an annualized dividend yield of 2.1%.
Canadian National’s second-quarter revenue climbed 11% year over year (YoY) to $4.8 billion as revenue ton miles rose 5%. Higher shipments of grain and energy products were key contributors, with grain and fertilizer revenue jumping 18% YoY and petroleum and chemicals revenue rising 16%.
As a result, the company’s net profit rose 7% YoY to $1.2 billion, while adjusted earnings jumped 11% to $2.08 per share.
CN’s ability to keep generating cash while growing the business makes it stand out. In the first half of 2026, CN produced $1.8 billion in free cash flow, up 19% from a year ago. That financial strength allowed it to repurchase about 2.9 million shares for $454 million during the second quarter.
The railway still plans to invest about $2.8 billion in its capital program this year, helping improve capacity and network performance over the long run.
Overall, that strong mix of earnings growth, cash generation, and continued investment is exactly what many TFSA investors want from a lifelong holding.
Intact Financial stock
Adding a high-quality insurer like Intact Financial (TSX:IFC) to a buy-and-hold TFSA portfolio could give investors another dependable long-term compounder.
As Canada’s largest property and casualty insurer, it operates across Canada, the United States, the United Kingdom, Ireland, and Europe. Beyond insurance, the business has expertise in claims management, pricing, and distribution.
At the time of writing, IFC stock traded at $275.25 per share with a market cap of $48.6 billion and offered an annualized dividend yield of 2.1%.
At first glance, its latest quarterly results may look disappointing. Notably, elevated catastrophe and large losses weighed on Intact’s profitability in the June 2026 quarter, causing its underwriting income to fall 61% YoY to $305 million. As a result, its net operating income also declined 39% to $3.17 per share.
On the brighter side, its operating direct premiums written still increased 4% YoY to $7.3 billion, backed mainly by continued strength in personal insurance. The insurer also continued creating value for shareholders as its book value increased 13% YoY to $111.73 per share, and operating return on equity reached 17%. These results clearly reflect its strength as a business that continues producing healthy returns even during periods of unusually high claims.
Moreover, Intact’s financial position remains another key strength as it finished the latest quarter with a total capital margin of $3.8 billion and an adjusted debt-to-capital ratio of 16.2%.
Despite one quarter of unusually high catastrophe losses, Intact’s diversified business model and strong fundamentals remain firmly intact. Overall, its scale, disciplined underwriting, data-driven pricing, and strong capital position continue to support its long-term growth strategy, making IFC a great long-term Canadian stock for a TFSA.
