TFSA Passive Income: 4 Stocks to Buy and Never Sell

TFSA Passive Income: 4 Stocks to Buy and Never Sell

Since you pay no tax in a TFSA (Tax-Free Savings Account), it's the perfect place to grow your investment passive income streams. You can reinvest any income you earn from your TFSA to buy more shares.

As you accumulate more shares, you also accumulate more dividend income. The fact that you keep all of your earnings means you can build your passive income even faster. If you like the idea of ​​putting passive income into a TFSA, here are four stocks you can easily buy and hold for years to come.

A TFSA stock that continues to weaken

Canadian National Railway (TSX:CNR) has an incredible dividend history. This stock has increased its dividend every year since 1996! While it yields just 1.98% today, it has increased its dividend by more than 12% annually for two decades. If you want to blend your capital and income, CNR is a great TFSA stock.

2023 was a tough year for CN. The economy is slowing and external factors (fires, floods and strikes) have caused traffic volumes to slow. While not ideal, the market seems to be giving it a short-term shot (the stock is only down 2% this year).At 20 times earnings, CN's share valuation is relatively attractive (especially compared to its closest competitor CP Rail) and now could be a good time to add a position.

A seasoned high quality dividend stock

goeasy (TSX:GSY) is another dividend stock that has had great returns over a long period of time. Its stock has returned a total of 1,090% over the past 10 years! Its shares now yield 3.1%. It has increased its dividend by a 27% compound annual rate over ten years.goeasy has become one of the largest non-prime lenders in Canada. Not only is it geographically diversified, but its product offering has expanded significantly over the past few years.

Although it may seem counterintuitive, the subprime market segment tends to be very resilient, even during recessions. This TFSA stock has sold off 40% since 2021 and today trades at just eight times earnings. In terms of growth and income, goeasy may be one of the best Canadian stocks.

TFSA shares for defensive growth and income

For defense, growth and income, Brookfield Infrastructure Partners (TSX:BIP.UN) is a stock to hold in a TFSA for years. Brookfield has a portfolio of perpetual assets. These assets include ports, pipelines, transmission lines, domestic utilities, gas processing plants, data centers and cell towers.

These are economically essential assets. For the most part, they have long-term contracts that are indexed to inflation. This ensures inner growth. However, the company also has a knack for reinvesting excess profits to acquire outstanding assets.Today, BIP shares are yielding 4.3%. Over the past ten years, the dividend has grown by approximately 7% per year. For similar utility stocks with excess growth, this is a great lifetime TFSA stock to hold.

An oil stock with a great past and a strong future

Canadian Natural Resources (TSX:CNQ) has already achieved two decades of +20% annual dividend growth. The fact that CNQ has three decades of energy reserves should help ensure future dividend growth for many years to come.CNQ is an incredibly well run company. While the company is dependent on energy prices, it has been built to weather every market cycle.

Today, CNQ shares trade with a dividend yield of 4.5%. Don't forget that this company has issued a special dividend or two in the past. So for extra passive income that can help grow your passive, CNQ is definitely one to stick around for a long time to come.The Motley Fool Canada team just released a brand new FREE report revealing 5 "dirt cheap" stocks you can buy today for less than $50 a share.

Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make fast-moving Canadian investors a fortune.Do not miss! Simply click on the link below to download your free copy and discover all 5 of these stocks now.

Generating passive income is a key financial goal for many investors, and tax-free savings accounts (TFSAs) offer a fantastic opportunity to build wealth without the worry of taxes eating into your gains. In this article, we examine four top-performing stocks that have a history of solid returns and are well-positioned for long-term growth. By holding these stocks in your TFSA, you can harness the power of compounding to create a reliable stream of passive income.

Company ABC - Dominating the technology space

One of the most promising stocks for TFSAs is ABC, a technology giant that consistently outperforms its competitors. With a diversified portfolio of innovative products and services, ABC has successfully penetrated various markets and ensured steady growth. Keywords: technology stocks, diversified portfolio, innovative products.

As the world moves toward sustainable energy solutions, XYZ Inc. becomes a pioneer in the renewable energy sector. Investing in this company for your TFSA not only supports environmental goals, but also guarantees a reliable source of passive income. Keywords: renewable energy reserves, sustainable investments, green energy.

E-commerce has transformed the retail landscape and GrowthCo is at the forefront of this revolution. With an exceptional track record of earnings growth, this stock promises substantial long-term returns for investors looking to secure a steady stream of passive income. Keywords: e-commerce stocks, sales growth, online retail.

PharmaHealth - Enhancing Innovation in Healthcare

PharmaHealth is a leading player in the pharmaceutical industry, constantly supporting innovation in healthcare. As the global population ages and healthcare needs increase, investing in these stocks in your TFSA can provide stability and the potential for substantial capital appreciation. Keywords: pharmaceutical stocks, healthcare innovation, long-term investments.

Why hold these stocks forever?

The strategy of buying and never selling these stocks in your TFSA has several advantages. First, if you hold high-performing stocks for the long term, you will benefit from the power of compounding. As your investments grow, they generate additional income and further increase your passive income.  long-term investments, compound returns, passive earnings.

Second, avoiding frequent buying and selling eliminates unnecessary transaction costs, taxes, and potential losses associated with market volatility. By adopting a "buy and hold" approach, you can minimize expenses and maximize your wealth accumulation potential. Keywords: transaction costs, market volatility, buy and hold.

Finally, these stocks have proven to be able to weather market downturns and economic uncertainties. By choosing companies with strong fundamentals and a history of resilience, you can protect your TFSA from drastic swings and ensure a steady stream of income. Keywords: market dips, economic uncertainties, strong fundamentals.

Incorporating top-performing, reliable stocks like Company ABC, XYZ Inc., GrowthCo, and PharmaHealth into your TFSA portfolio is an excellent way to build long-term passive income. By harnessing the power of compounding and investing in companies with strong growth potential, you can take advantage of a tax-free income stream while securing your financial future.

Remember that successful investing requires careful research, diversification and a commitment to holding onto your investments. Adopt a patient and disciplined approach and your TFSA will become a powerful tool for generating passive income and achieving your financial goals. TFSA Passive Income, Top Performing Stocks, Tax Free Income, Long Term Investments, Reliable Stocks, Compound Growth.