The Canadian Dividend Stocks I’d Be Most Comfortable Holding in a TFSA Forever

Some stocks are fun to trade. Others are better left alone. For a Tax-Free Savings Account (TFSA), I’d prefer the second kind – companies that can sit quietly in the account, generate income, and compound without needing constant attention.

Two Canadian dividend stocks come close to meeting that standard in 2026. One provides essential utility services across North America, while the other sits at the centre of Canada’s financial system. Both continue to generate strong earnings, invest for future growth, and return capital to shareholders.

For TFSA investors, that combination could be especially powerful because income and gains can compound tax-free. Let’s discuss why these top dividend stocks could be comfortable forever holdings inside a TFSA.

Fortis stock

The first stock I’d feel comfortable holding long term is Fortis (TSX:FTS), a Canadian utility giant that has built its reputation on stable performance, operating regulated electric and gas assets across North America. Its operations include ITC Holdings, UNS Energy, Central Hudson, FortisBC, FortisAlberta, and other electric utilities.

After climbing by 20% over the last year, FTS stock recently traded at $77.83 per share with a market cap of $39.6 billion. At the current market price, it offers a dividend yield of about 3.3%, paid quarterly.

The company’s first-quarter results showed why it remains such a steady long-term holding. For the quarter, Fortis delivered net profit of $501 million, or $0.99 per common share, while it invested $1.4 billion in capital projects.

Its five-year capital plan totals $28.8 billion and is expected to increase its midyear rate base from $42.4 billion in 2025 to $57.9 billion by 2030. That growth supports its dividend growth guidance of 4% to 6% annually through 2030, making it a reliable dividend stock for TFSA investors.

Royal Bank stock

The next stock I’d add to that list is Royal Bank of Canada (TSX:RY), or RBC, a cornerstone of the Canadian financial system. The largest Canadian bank gives TFSA investors exposure to Canada’s robust financial sector, with operations across personal and commercial banking, wealth management, capital markets, and insurance.

Having climbed 58% over the last 12 months alone, RBC stock now trades at $276.01 per share with a market cap of about $384 billion. It also rewards investors with attractive quarterly payouts, with its dividend yield currently sitting at 2.6%.

In the second-quarter of its fiscal year 2026 (ended in April), RBC’s net income climbed 25% YoY to $5.5 billion. The bank’s diluted earnings for the quarter also rose 27% YoY to $3.85 per share. This growth was mainly driven by strong global markets and investment banking activity, along with loan and deposit growth in both personal and commercial banking segments.

Meanwhile, RBC continues to maintain a strong liquidity position with a liquidity coverage ratio of 126% and a net stable funding ratio of 111%.

To accelerate its growth further, the bank is continuing to focus on loan and deposit growth, digital banking capabilities, and technology modernization, making it an attractive forever dividend stock for long-term TFSA investors.

The post The Canadian Dividend Stocks I’d Be Most Comfortable Holding in a TFSA Forever appeared first on The Motley Fool Canada.

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More reading

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Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.