Fortis
Fortis (TSX:FTS) is one of the most reliable stocks to hold in your TFSA, thanks to its stable and predictable financial performance, strong growth prospects and long track record of consistent dividend increases. The company operates ten regulated natural gas and electric utilities in the United States, Canada and the Caribbean, serving approximately 3.5 million customers. Because 99% of assets are regulated and 93% tied to transmission and distribution, Fortis’s revenues are less sensitive to economic cycles and market volatility.
Backed by this stability, Fortis has achieved an impressive annualized return of 9.84% over the past twenty years. The company has also increased its dividend for 52 years in a row and currently offers a forward yield of 3.49%. On the growth front, Fortis is on track to invest $5.6 billion this year, after investing $4.2 billion in the first three quarters. It also unveiled a new five-year capital plan worth $28 billion, which could expand its interest base to $57.9 billion by 2030.
Supported by these expansion initiatives, management expects to grow the dividend by 4-6% annually through 2030, making Fortis an attractive addition to your TFSA over the longer term.
Waste connections
Another reliable stock that I think would make an excellent addition to your TFSA is Waste connections (TSX:WCN), a leading provider of solid waste management services in the United States and Canada. The company mainly operates in secondary and exclusive markets, which means it faces less competition and can maintain higher margins. It has also expanded its business through a combination of organic growth and strategic acquisitions. Since 2020, Waste Connections has completed more than 100 acquisitions, bringing annual revenues to more than $2.2 billion. Supported by these initiatives and consistent financial growth, the Toronto-based company has delivered an impressive annualized return of 12.5% ​​over the past two decades.
Looking ahead, WCN plans to continue its acquisition-driven growth strategy, supported by strong financial performance and robust cash flows. The company also uses technology to enhance customer experience, improve operational efficiency and strengthen profitability. Additionally, declining voluntary employee turnover – driven by improved engagement programs and better safety metrics – is contributing to margin growth. The company recently increased its dividend by 11.1%, marking its 15th consecutive year of double-digit dividend growth, and currently offers a forward yield of 0.83%.
Given these strengths, I expect Waste Connections to continue its positive financial trajectory despite recycled feedstock pricing challenges, making it an attractive long-term buy for TFSA investors.
Dollarama
Dollarama (TSX:DOL) is a discount retailer that consistently delivers strong same-store sales growth regardless of macroeconomic conditions. The efficient direct purchasing model and streamlined logistics help keep costs low, allowing the company to offer a wide range of consumer products at competitive prices. Dollarama has also steadily expanded its footprint, supporting robust financial growth and driving remarkable stock performance – with returns of more than 585% over the past decade, or an annualized rate of 21.2%.
Looking ahead, the company continues to pursue an aggressive expansion strategy. The company plans to expand the number of stores in Canada from 1,665 to 2,200 and the number of locations in Australia from 395 to 700 by the end of fiscal 2034. Given Dollarama’s capital-efficient and growth-oriented business model, rapid sales growth and low maintenance capital requirements, these expansions are well positioned to increase both revenue and profitability.
Meanwhile, subsidiary Dollarcity, which currently operates 658 stores in Latin America, aims to expand its network to 1,050 stores by the end of fiscal 2031. Dollarama also has the option to increase its ownership stake in Dollarcity from 60.1% to 70% by 2027. Given the company’s strong fundamentals, proven growth strategy and continued expansion prospects, Dollarama stands out as an excellent addition to a TFSA portfolio.
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