How Your 2026 TFSA Contribution Could Grow to $280,000 or More

A Tax-Free Savings Account (TFSA) is an excellent tool for building long-term wealth, as it allows Canadians to earn tax-free returns on eligible investments up to their available contribution limit. For 2026, the annual TFSA contribution limit stands at $7,000. While that amount may appear modest initially, disciplined investing and the power of compounding can help investors build substantial wealth over the long term.

For instance, investing $7,000 in stocks that generate annualized returns of more than 16% over 25 years could potentially grow into nearly $280,000. However, identifying stocks capable of delivering such strong returns over the long term is challenging. Therefore, investors should remain selective, regularly review their portfolios, and adjust their investments when necessary to maximize long-term gains.

With that in mind, let’s look at two Canadian stocks that could potentially deliver annualized returns of more than 16% over the next five years.

Celestica

Celestica (TSX:CLS) is an electronics manufacturing services company that designs, engineers, and manufactures advanced hardware, connectivity, and supply chain solutions for customers across several high-growth industries, including hyperscale cloud computing, aerospace, defence, healthcare, and industrial markets. Supported by its exposure to rapidly expanding sectors and strong operational execution, the company has delivered exceptional returns of nearly 2,945% over the last three years at an annualized rate of 802%.

Meanwhile, hyperscalers continue to expand their AI-ready data centre infrastructure to support the accelerating adoption of artificial intelligence across industries, creating significant long-term growth opportunities for Celestica. To capitalize on this favourable environment, the company remains focused on developing innovative product offerings and strengthening its manufacturing capabilities. Last month, Celestica announced plans to establish a manufacturing footprint in Fort Worth, Texas, which should enhance its ability to meet rising demand for next-generation data centre infrastructure and advanced technology solutions.

Supported by these strong growth trends, management expects revenue and adjusted earnings per share (EPS) to increase by 53.2% and 67.8%, respectively, in 2026. In addition, amid improving demand visibility and additional program wins, the management expects even stronger performance in 2027. Given the favourable industry backdrop and the company’s ongoing expansion initiatives, I believe Celestica remains well-positioned to continue delivering strong long-term returns, making it an attractive addition to a TFSA portfolio.

5N Plus

Another Canadian stock that could deliver impressive growth in the coming years is 5N Plus (TSX:VNP), a manufacturer of specialty semiconductors and performance materials used across several high-growth industries and applications. Supported by strong financial growth and increasing exposure to rapidly expanding end markets, the company has generated remarkable returns of nearly 1,297% over the last three years.

Meanwhile, I expect the momentum in 5N Plus’s financial performance to continue, driven by strong demand for specialty semiconductors amid structural growth trends in key markets such as terrestrial renewable energy and space-based solar power. Thanks to its expertise in producing ultra-high-purity semiconductor compounds, the company appears well-positioned to benefit from these favourable industry dynamics.

To meet rising demand, 5N Plus is also expanding its production capabilities. The company plans to increase solar cell production capacity at AZUR SPACE Solar Power GmbH by 25% this year. In addition, it has received US$18.1 million in funding from the U.S. government to strengthen germanium recycling and refining operations at its St. George, Utah, facility, supporting supply chains for optics and solar germanium crystals.

Given these expansion initiatives and supportive long-term industry trends, I expect 5N Plus to continue delivering strong financial growth, which could further support its share price performance in the years ahead.

The post How Your 2026 TFSA Contribution Could Grow to $280,000 or More appeared first on The Motley Fool Canada.

Should you invest $1,000 in Celestica right now?

Before you buy stock in Celestica, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Celestica wasn’t one of them. The 10 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 over $18,000!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 94%* – a market-crushing outperformance compared to 85%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #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 April 20th, 2026

More reading

• This Stellar Canadian Stock Is up 498% This Past Year, and There’s More Growth Ahead
• 2 Superb Canadian Stocks Set to Surge Into 2026
• 2 Canadian AI Stocks Poised for Significant Gains
• 3 Major Red Flags the CRA Is Watching for Every TFSA Holder
• 1 Magnificent Canadian Tech Stock Down 13% to Buy and Hold for Decades

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Celestica. The Motley Fool has a disclosure policy.