TFSA Investors: 2 Top TSX Stocks to Buy and Hold for Decades of Returns!

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The contribution room for Tax-Free Savings Accounts (TFSA) was raised by another $6,000 this year, bringing the total to $75,500. Investors can use this opportunity to find or increase their stake in several strong companies. But if you’re looking for good buys that will last you decades, you want to go essential. That means looking at necessary companies that will continue to be around decades from now, and with dividends to reinvest along the way.


While it might be nice to think that green energy will soon take over the world, it’s going to take a long time. True, in the next decade, about $10 trillion will be invested globally into green energy projects. That’s certainly a lot of investment, and a lot of opportunities on the stock market.

However, if you want safe and stable stocks that will continue to increase, the oil and gas sector is your best bet. These stocks are on the rebound as the pandemic comes to an end, the oil and gas glut decreases, and trading can resume. But the best place to invest remains with pipelines like Enbridge (TSX:ENB)(NYSE:ENB).

Enbridge stock is perfect for long-term holders. The company is supported by long-term contracts that will keep cash coming in for decades, with dividend increases along the way. Yet the company also has several growth projects in the works that will help keep oil and gas flowing for decades. That leaves plenty of time for the company to shift to green energy in the future if it can.

If you invested two decades ago, shares in Enbridge are up 863%. The dividend is 7.43% as of writing. So, if you invested $37,750 then (half your TFSA room) back then, today you would have a dizzying $7,531,485 with dividends reinvested!


Another area that’s proven to be a necessity is telecommunications. These companies expanded over the last two decades. But right now, it’s levelled off as the pandemic decreased revenue across the board. However, these companies are now looking to expand, and that includes BCE (TSX:BCE)(NYSE:BCE).

BCE stock is set to soar, as the company looks to make 5G available for all its Canadian customers, which adds up to about a quarter of Canada’s population. Basically, the pandemic delayed the 5G boom, and now it’s about to arrive. So, there’s still time to get in on the action from a safe company before the next wave hits. The company plans to double its 5G coverage, while hiking its dividend payout and investor confidence all in one.

The company has been around for decades and is likely to be around for decades more. In the last 20 years, shares increased by 273% as of writing, and it offers a dividend yield of 6.06%. If you’d invested that other half of TFSA room at $37,750 back then, today you would have $631,528!

Bottom line

Stable and safe growth doesn’t have to be boring. By investing in strong stocks with stable dividends, you can reinvest those dividends and see massive returns over decades. All together, if you invested in these stocks 20 years ago, today you would have a portfolio worth $8,163,013 with dividends reinvested!

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Fool contributor Amy Legate-Wolfe owns shares of ENBRIDGE INC. The Motley Fool owns shares of and recommends Enbridge.

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