2 Standout Stocks for Your $7,000 TFSA Contribution This Year
Alex Smith
3 hours ago
Buying and holding stocks with strong long-term growth potential can help you create wealth. Moreover, holding these top Canadian stocks within a Tax-Free Savings Account (TFSA) can further enhance overall returns. This structure allows investors to realize capital gains and receive dividends without incurring taxes, thereby maximizing the net outcome from their investments.
With the annual TFSA contribution limit currently set at $7,000 this year, here are two standout stocks to consider now.
CES Energy stock
TFSA investors looking for top TSX stocks for 2026 could consider CES Energy (TSX:CEU). The company provides consumable chemical solutions to help oil and gas producers enhance output, improve operational efficiency, and safeguard critical upstream infrastructure.
It is witnessing solid demand for its advanced chemicals, which has driven its share price higher. CES Energy stock has risen more than 50% year-to-date and approximately 667% over the past three years. Despite this rally, CES stock still has significant upside.
Notably, the demand for its products continues to expand as upstream operators intensify service activity and increasingly adopt higher-value chemical solutions. In addition, targeted acquisitions have enhanced CES Energyâs capabilities, strengthening its financial performance and supporting continued expansion.
Further, CES Energy operates an asset-light business model. This structure enables the company to generate strong, consistent free cash flow, supporting its growth initiatives and boosting shareholder returns.
While increasing demand and an asset-light business model position CES Energy to deliver steady growth, it is also likely to benefit from heightened upstream activity in North America amid ongoing tensions, including the U.S.âIran conflict and the RussiaâUkraine war. The increase in oil and gas development would drive demand for CES Energyâs offerings.
The companyâs operational footprint also contributes to its resilience. With a significant portion of revenue generated in the U.S. and a vertically integrated North American platform, CES Energy is comparatively insulated from tariff-related risks.
Overall, CES Energy appears well-positioned to extend its growth trajectory into 2026 and maintain momentum over the longer term.
SECURE Waste Infrastructure stock
SECURE Waste Infrastructure (TSX:SES) is a compelling option for TFSA investors. The company operates across waste management and energy infrastructure, providing essential services that drive recurring revenue.
While tariff-related uncertainty has weighed on its metals recycling segment, these pressures are transitory. Meanwhile, strong momentum in its core waste management and infrastructure operations continues to drive its financials and share price momentum.
So far this year, SECURE Waste stock has gained about 22%. Moreover, it is up about 284% in three years.
Looking ahead, SECURE Waste is well-positioned to deliver strong growth, which will drive its share price higher. A significant portion of the companyâs assets operate under long-term contracts, which generate predictable revenue and consistent cash flow. This contractual structure reduces exposure to commodity price volatility.
Supporting its investment case is the companyâs progress on several long-duration infrastructure projects, which are expected to contribute meaningfully to earnings in the coming years. As these assets become operational, management anticipates a notable increase in adjusted EBITDA, with the financial benefits becoming more pronounced beginning in 2026. In parallel, SECURE plans to continue allocating capital toward high-return organic projects while expanding its network to meet growing customer demand.
In addition to these drivers, a potential recovery in the metals recycling segment could further enhance growth. Overall, SECURE Wasteâs stable cash flow, expanding infrastructure base, and improving segment outlook position it as an attractive long-term investment for TFSA investors.
The post 2 Standout Stocks for Your $7,000 TFSA Contribution This Year appeared first on The Motley Fool Canada.
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More reading
- 2 Canadian Growth Stocks Set to Skyrocket in the Next 12 Months
- A Better Way to Invest Your RRSP Refund in 2026
- Top Canadian Stocks to Buy Right Away With $5,000
- The Best Stocks to Invest $1,000 in Right Now
- 2 Growth Stocks I Expect to Surge Well Into This Year and Beyond
Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends CES Energy Solutions and Secure Waste Infrastructure Corp. The Motley Fool has a disclosure policy.
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