Got $5,000 to Invest? Put it to Work in 3 TFSA-Worthy Blue Chips (and Then Do Nothing for Decades)

A Tax-Free Savings Account (TFSA) is, I think, a unique cheat code for Canadian investors that is often underutilized. Investors can put $7,000 to work in this account (still eligible to do so this year), which can grow tax-free for retirement. These are after-tax funds (so investors won’t get a tax break, as they would for contributing to an RRSP, for example). However, the fact that this account’s growth won’t be taxed at the time funds are pulled out is advantageous for those looking to create meaningful passive-income streams in retirement.

With that in mind, here are three dividend stocks that provide the right kind of capital-appreciation upside that’s deserving of a portfolio position in most investors’ TFSAs right now.

Toronto-Dominion Bank

For investors looking for not only relatively stable and consistent long-term growth, but also relative defensiveness in the financial sector, Toronto-Dominion Bank (TSX:TD) is a top pick of mine.

Among the largest Canadian banks, I’d argue that TD has one of the best long-term growth profiles out there. Looking at the company’s five-year chart above, it’s clear that much of the company’s growth over this period has actually come over the past year.

With a whopping 67% year-to-date return at the time of writing, 2025 will likely go down as one of this bank’s best years in a long time. Surging revenue and earnings, coupled with improving operating efficiencies and a steepening yield curve (boosting net income margins), have led to such upside.

I think 2026 could bring more to come, and this 3.4% yielding Big Five Canadian bank remains a long-term staple to accumulate and hold over time.

Pembina Pipeline

Among the top Canadian energy infrastructure companies I think long-term investors can own here, Pembina Pipeline (TSX:PPL) is seeing much-improved investor sentiment, at least over the course of the past five years.

Now, the pipeline giant’s performance over the course of the past year hasn’t been stellar. And similar to my next pick, I think that’s likely to change over the course of the next decade.

But despite declining 3.5% on a year-to-date basis at the time of writing, this stock’s yield of nearly 6% more than offsets that deterioration. I’m looking for high single-digit to low double-digit capital appreciation over time, with dividend growth driving an additional 6%+ return for investors over time. That’s the kind of solid compounding investors want in their TFSA, and makes this a top pick of mine heading into what could be an uncertain year.

Restaurant Brands

One of the Canadian stocks I’m most bullish on right now is Tim Hortons’ parent Restaurant Brands (TSX:QSR).

Shares of the quick-service restaurant giant have done well this year but have underperformed my expectations for where QSR stock would end the year. Still, many investors would be happy with a return of roughly 4% so far this year. That’s because when combined with this company’s 3.6% dividend yield, that’s nearly an 8% return. If Restaurant Brands can do that for many years in a row, this is the sort of investing profile investors can get behind.

Now, I think much higher capital appreciation upside is likely warranted over the long term. Structural trends tied to trade-down in the dining space, as well as increasingly defensive portfolio orientations, should bode well for Restaurant Brands relative to many other blue-chip stocks in the market over the decade to come. That’s my base case, and I’m sticking to it.

The post Got $5,000 to Invest? Put it to Work in 3 TFSA-Worthy Blue Chips (and Then Do Nothing for Decades) appeared first on The Motley Fool Canada.

Should you invest $1,000 in Pembina Pipeline Corporation right now?

Before you buy stock in Pembina Pipeline Corporation, consider this:

The Motley Fool Stock Advisor Canada analyst team identified what they believe are the 15 best stocks for investors to buy now… and Pembina Pipeline Corporation wasn’t one of them. The 15 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,105.89!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 95%* – a market-crushing outperformance compared to 72%* for the S&P/TSX Composite Index. Don’t miss out on our top 15 list, available when you join Stock Advisor Canada.

See the 15 Stocks #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of November 17th, 2025

More reading

• Yield vs Returns: Why You Shouldn’t Prioritize Dividends That Much
• Find Your Balance: 3 TSX Stocks for Income, Growth, and Value
• This Canadian Bank Stock Could Be the Best Buy in December
• Top 3 Dividend Stocks to Buy Before the Year Runs Out
• TD Bank Stock is Up a Remarkable 68% in 1 Year: Is it a Buy?

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Pembina Pipeline and Restaurant Brands International. The Motley Fool has a disclosure policy.