2 Exceptional Stocks for Your $7,000 TFSA Contribution in 2026

A Tax-Free Savings Account (TFSA) is a powerful tool for building long-term wealth, as it allows investors to earn tax-free returns on eligible investments. For this year, the Canada Revenue Agency (CRA) has set the annual contribution limit at $6,000. Meanwhile, the cumulative limit stands at $109,000 for individuals who were at least 18 years old in 2009 and want to start investing through their TFSA.

That said, investors should exercise caution when using a TFSA. Losses from declining stock prices and subsequent sales not only erode capital but can also permanently reduce contribution room. Given these risks and ongoing market volatility, I believe the following two stocks—backed by strong business fundamentals and clear growth prospects—present compelling buying opportunities.

Fortis

Fortis (TSX:FTS) is one of the top Canadian stocks to consider for your TFSA, thanks to its low-risk business model and highly regulated asset base. The utility serves approximately 3.5 million customers across the United States, Canada, and the Caribbean, supplying electricity and natural gas. With about 95% of its assets tied to regulated transmission and distribution operations, its financial performance remains largely insulated from commodity price swings and broader economic cycles, enabling stable earnings and consistent returns.

Over the past two decades, Fortis has delivered an average annual shareholder return of 10.4%. It also boasts an exceptional dividend track record, having increased its payout for 52 consecutive years, and currently offers a forward yield of around 3.38%.

Looking ahead, rising energy demand across North America—driven by economic growth, increased investment in AI-ready data centres, and the electrification of transportation—provides a favourable backdrop. To capitalize on these trends, Fortis plans to invest $28.8 billion over the next five years, which could expand its rate base at an annualized rate of 7%, reaching $57.9 billion by 2030.

In addition, the company continues to focus on preventive maintenance, operational efficiency, and energy transition initiatives to reduce costs and improve long-term sustainability. Collectively, these efforts should strengthen its financial performance, supporting both share price appreciation and dividend growth. Notably, management expects to grow its dividend by 4–6% annually through 2030, making Fortis an attractive long-term buy for TFSA investors.

Enbridge

Enbridge (TSX:ENB) is another strong candidate for a long-term TFSA portfolio, supported by its contracted business model, reliable dividend growth, and clear expansion runway. The energy infrastructure giant transports oil and natural gas across North America through tolling arrangements and long-term take-or-pay contracts, which provide steady and predictable cash flows. In addition, it operates three U.S.-based natural gas utilities and a growing portfolio of renewable energy assets backed by long-term power-purchase agreements (PPAs).

A significant portion of Enbridge’s earnings is derived from regulated assets and long-term contracts, with roughly 80% of its cash flows indexed to inflation. This structure helps shield its financial performance from market volatility and has enabled the company to meet or exceed its financial guidance for 20 consecutive years. Backed by this consistency, Enbridge has delivered an annualized total shareholder return of 12.8% over the past two decades. It also has an impressive income track record, having paid dividends for more than 70 years and increased them for 31 consecutive years, currently offering a forward yield of about 5.18%.

Looking ahead, rising energy demand and increasing oil and natural gas production across North America provide a favourable backdrop for Enbridge’s growth. The company has identified approximately $50 billion in growth opportunities through 2030 and plans to invest $10–$11 billion annually to capitalize on these prospects. Given its stable business model and visible growth pipeline, Enbridge appears well-positioned to sustain its financial momentum, supporting both share price appreciation and continued dividend growth over the long term.

The post 2 Exceptional Stocks for Your $7,000 TFSA Contribution in 2026 appeared first on The Motley Fool Canada.

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More reading

• Here’s How to Turn $25,000 Into TFSA Cash Flow
• How Much a Typical 45-Year-Old Has in TFSA and RRSP Accounts
• How $14,000 in This TSX Stock Could Generate $860 in Annual Income
• TFSA Investors: Here’s the Only Time Using a Taxable Account Is a Better Choice
• 3 of the Best Canadian Stocks for a Buy and Hold in a TFSA

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