Investors looking to build a steady passive-income stream for decades could consider investing in Canadian dividend stocks. Even better, if you hold these stocks in a Tax-Free Savings Account (TFSA), your earnings—whether from dividends, capital gains, or interest—won't be taxed. That means more money stays in your pocket. If tax-free passive income is your goal, here are three fundamentally strong dividend stocks to buy and hold forever.

TFSA dividend stock #1

Canadian Natural Resources (TSX:CNQ) is a top dividend stock to buy and hold forever in a TFSA. This oil and gas company consistently generates significant and sustainable free cash flows that support higher dividend payments, making it a reliable stock for passive-income investors.

Recently, Canadian Natural Resources boosted its quarterly dividend by 7% to $0.5625 per share. Impressively, this marks the company's 25th consecutive year of increasing dividends. During the same period, its dividend has grown at a compound annual growth rate (CAGR) of 21%.

Canadian Natural Resources's long-life, low-decline assets, a strong balance sheet, and efficient operations support its earnings and cash flows and drive its dividend payouts. Additionally, Canadian Natural Resources benefits from a diversified asset base. This allows it to focus on high-return projects across different commodities, reducing reliance on any single resource. The focus on high-return projects and improving costs supports its bottom line and enables it to enhance shareholder value.

Canadian Natural Resources returned approximately $4.4 billion to shareholders through dividends in 2024, up to October 30. Moreover, it offers a yield of 4.4%.

TFSA dividend stock #2

TFSA investors could consider Fortis (TSX:FTS) stock for its resilient payouts and focus on rewarding shareholders with high payouts. Fortis has ten regulated utilities across Canada, the U.S., and the Caribbean. The company's regulated electric utility assets generate predictable and growing cash flows that support higher dividend payments, making Fortis a top income stock.

Notably, Fortis has uninterruptedly increased its dividend for 51 consecutive years. Moreover, the company's strong rate base growth suggests that it could maintain this streak in the coming years.

Fortis's $26 billion capital expenditure plan will significantly expand its rate base over the next five years. The company projects its rate base to increase at a CAGR of 6.5% through 2029, which will help grow its earnings and enable it to increase its dividend at a CAGR of 4-6% during this time.

Fortis's defensive business model, visibility over rate base, and dividend growth make it a reliable income stock. Moreover, its solid transmission investment pipeline and a well-protected dividend yield of about 4% are positives.

TFSA dividend stock #3

Toronto-Dominion Bank (TSX:TD) is an attractive dividend stock to buy and hold forever in a TFSA. This Canadian banking giant has paid dividends for 167 continuous years. Moreover, its dividend sports a CAGR of 10% since 1998, the highest among its peers.

The financial services company's ability to consistently grow its earnings and conservative payout ratio of 40-50% enables it to pay and increase its dividend.

Toronto-Dominion Bank's diversified business model, growing customer base, investments in digital capabilities, and growing loans and deposits support its top and bottom lines. Further, its strong balance sheet and efficient operations support consistent earnings growth and dividend payouts. Further, Toronto-Dominion Bank will likely benefit from its strategic acquisitions and enhance shareholder value.

Currently, this Canadian banking giant is offering an attractive yield of 5.2%.