2 Strong Stocks Worth Putting Your $7,000 TFSA Contribution Into in 2026

Investing your Tax-Free Savings Account (TFSA) contribution in stocks could make a big difference in the long run. But with so many choices available, it could be an astute move to focus on companies that combine strong financial performance with clear long-term growth potential.

And if you’re looking to invest your 2026 TFSA dollar limit of $7,000 in some fundamentally strong companies, many Canadian stocks are worth considering for their ability to deliver both income and capital appreciation. In this article, I’ll spotlight two such stocks that could fit well in a long-term TFSA portfolio.

Nutrien stock

Nutrien (TSX:NTR) is one such strong stock that continues to benefit from its leadership in the global agriculture space. It operates across multiple segments, including retail, potash, nitrogen, and phosphate, supplying essential crop inputs to farmers worldwide. This diversified structure allows this Saskatoon-based firm to benefit from volume growth and pricing strength in global agriculture markets.

For full-year 2025, Nutrien posted net profit of US$2.3 billion and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of US$6.1 billion. These solid financials were primarily driven by higher fertilizer prices, record upstream sales volumes, and improved Retail earnings. Meanwhile, its potash segment played a key role, with adjusted EBITDA rising to US$2.3 billion due to strong offshore demand and higher realized prices.

In addition, Nutrien’s recent growth has also been supported by its focus on strategic portfolio actions. Notably, the company sold its 50% stake in Profertil S.A. for about US$600 million, improving capital efficiency. It has also been actively repurchasing shares under its normal course issuer bid (NCIB), reinforcing its commitment to shareholder returns.

Going forward, Nutrien projects its retail adjusted EBITDA to be between US$1.75 billion and US$1.95 billion for 2026. Similarly, its potash sales volumes are expected to reach 14.1 to 14.8 million tonnes, while nitrogen volumes are forecast at 9.2 to 9.7 million tonnes.

With a focus on operational efficiency, disciplined capital allocation, and long-term free cash flow growth, Nutrien looks well-positioned for the years ahead. Its reliable dividends with a 2.9% yield make this stock even more rewarding for TFSA investors.

Northland Power stock

Northland Power (TSX:NPI) could be another strong contender for TFSA investors seeking a mix of long-term growth and income. The company develops and operates a diversified portfolio of energy assets, including offshore wind, solar, battery storage, and natural gas. After surging by 22% in the last year, NPI stock now trades at around $24 per share with a market cap of $6.3 billion. At this price, it offers an annualized dividend yield of around 3%, with monthly payouts.

In its latest results, Northland registered full-year adjusted EBITDA of $1.25 billion, in line with guidance. Its free cash flow reached $1.46 per share, exceeding expectations. This growth is being driven by its strong offshore wind production and an expanding energy pipeline.

Interestingly, the company aims to double its gross operating capacity to 7 GW by 2030, supported by a clear funding plan and focus on key regions like Canada and Europe. For 2026, management expects adjusted EBITDA between $1.45 billion and $1.65 billion, with free cash flow projected between $1.05 to $1.25 per share.

Major projects such as Baltic Power, expected to begin operations in the second half of 2026, and the Hai Long project targeted for 2027, are likely to support future earnings growth. At the same time, its streamlined operating model should improve efficiency during this expansion phase.

The post 2 Strong Stocks Worth Putting Your $7,000 TFSA Contribution Into in 2026 appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Nutrien. The Motley Fool has a disclosure policy.