The Best Canadian Stocks to Buy and Hold Forever in a TFSA #CanadaFinance

Written by Demetris Afxentiou at The Motley Fool Canada

Selecting the best Canadian Stocks for your portfolio is something that will be different for nearly every investor. Canadian stocks are blessed for having a good mix of income and growth-focused stocks that can cater to any portfolio.

Here’s a look at what I see as some of the best Canadian stocks for investors to buy and hold.

Canada’s big bank stocks are always a good option for a portfolio. Between the tasty dividend, reliable domestic market and a growth-focused international segment, there’s something for every investor.

The big bank to buy and hold in your TFSA, which is handily one of the best Canadian stocks to buy, is Bank of Nova Scotia (TSX:BNS).

Scotiabank isn’t the largest of the big banks, but it continues to grow and has been paying out a very handsome dividend for nearly two centuries. As of the time of writing, Scotiabank’s yield works out to an impressive 5.31%.

This means that investors with a $35,000 investment into the bank will earn an income just shy of $2,000. Prospective investors should keep in mind that those dividends can and should be reinvested until needed.

This allows any eventual income to continue growing over the longer term.

Apart from its juicy yield, Scotiabank can also become a source of growth. The bank, which is already known as Canada’s most international bank, is focusing on the U.S. market to fuel growth.

That focus includes a stake in U.S.-based KeyCorp, which was announced last year.

The market is filled with stellar defensive options that can provide a stable recurring source of income. Canadian Utilities (TSX:CU) is a prime example of that view.

Canadian Utilities operates a regulated business that generates a reliable revenue stream that leaves room for growth investment and a juicy dividend. This is because utility stocks are bound by very long-term, regulated contracts.

Speaking of income, Canadian Utilities offers investors a tasty quarterly dividend with a yield of 5.27%. Like Scotiabank, an investment of $35,000 in Canadian Utilities will also generate nearly $2,000 in income, but there’s an additional point to note.

Canadian Utilities is one of only two Dividend Kings in Canada. This means the company has provided annual upticks to its dividend for a whopping 50 consecutive years.

Specifically, Canadian Utilities’s dividend most recently hit an incredible 52 years of consecutive annual increases. That fact alone makes this one of the best Canadian stocks to own for the long term.

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