2 TSX Stocks That Can Turn a $56,000 TFSA Into a Lasting Income Machine

The average TFSA balance for Canadians aged 70 to 74 was about $56,000 in the CRA’s 2023 contribution year data. That is helpful money — but it is not exactly “never think about retirement income again” money. For many Canadians at this stage of life, it is a reminder that a TFSA works best when it holds strong businesses that can keep compounding, paying dividends, and growing for years rather than sitting still.

If you are a Canadian investor in or near your 70s looking to make that TFSA balance work harder — generating real income without taking on unnecessary risk — here are two TSX stocks worth considering.

Rogers Communications: An Entertainment and Connectivity Giant Turning a Corner

Rogers Communications (TSX: RCI.B) is one of Canada’s biggest telecom and media companies, with wireless, cable, internet, sports, and broadcasting assets all under one roof. That already gives it a sturdy base, but the story got more interesting over the last year as Rogers leaned harder into sports and entertainment, including its growing control of MLSE — Maple Leaf Sports and Entertainment, the company behind the Maple Leafs, Raptors, and TFC — and the payoff from live sports content that audiences keep watching no matter what the economy is doing.

That strategy has started showing up in the numbers. Rogers reported strong fourth-quarter 2025 results, with total service revenue up 16% to $5.3 billion and adjusted EBITDA up 6% to $2.7 billion. Media revenue jumped 126% in the quarter, helped by the Blue Jays’ post-season run and higher advertising and subscriber revenue tied to its newer channels. This is not just a telecom plodder anymore — it is trying to become a broader entertainment and connectivity machine.

Valuation looks fairly reasonable for that mix. Rogers recently traded around $54, at roughly 4 times earnings with a dividend yield of approximately 3.4% on an annualized dividend of $2 per share. The main risk is simple: telecom competition stays fierce, and Rogers still carries meaningful debt after years of big deals. Even so, with steadier wireless performance, stronger media assets, and guidance for higher 2026 free cash flow, it looks like a solid long-term TFSA fit for an investor who wants income and a business that can keep growing.

Canadian National Railway: 30 Consecutive Years of Dividend Increases and Counting

Canadian National Railway (TSX: CNR) is a different kind of forever stock. It does not sell phone plans or hockey rights. It moves grain, containers, autos, energy products, and industrial goods across a rail network that would be nearly impossible to replicate today. That is the magic here. Railways are boring in the best possible way — they sit at the centre of the economy, and when one is run well, it can quietly create wealth for decades.

In early 2026, CN’s board approved a 3% increase in the quarterly dividend, marking the 30th consecutive year of dividend increases. For a 70-year-old investor who wants income that grows with time rather than standing still, that kind of track record is exactly what a TFSA should hold.

The last year was not perfectly smooth. CN dealt with the after-effects of labour disruptions and Alberta wildfires in 2024, which forced it to trim its profit outlook at the time. But by early 2026, the tone had improved considerably. The company posted solid fourth-quarter and full-year 2025 results, bought back about 15 million shares for roughly $2 billion in 2025, and set a lower 2026 capital program of about $2.8 billion, which should help free cash flow.

The earnings support the long-term case. In the fourth quarter, diluted EPS rose 12% to $2.03, while adjusted diluted EPS climbed 14% to $2.08. For full-year 2025, revenue reached $17.3 billion and adjusted diluted EPS rose 7% to $7.63. CN recently traded around $142 with an annual dividend of $3.66 per share and a yield near 2.6%. That is not a screaming bargain, but quality rarely is. The risk is that rail volumes can wobble with the economy. Still, CN fits because it offers dependable cash flow, pricing power, and the kind of moat that can keep paying off for decades.

Bottom line

The average TFSA balance at age 70 is not enough on its own, but the right holdings can make it work a lot harder. Rogers offers income and a broad Canadian communications and entertainment platform. CN brings durability, long-haul compounding power, and a dividend growth streak spanning three decades. Here is what splitting that average $56,000 TFSA balance between the two could generate:

COMPANYRECENT PRICENUMBER OF SHARES YOU COULD BUY WITH $28,000ANNUAL DIVIDENDTOTAL ANNUAL PAYOUTPAYOUT FREQUENCYRCI.B$53.54522$2.00$1,044QuarterlyCNR$142.46196$3.66$717.36Quarterly

The post 2 TSX Stocks That Can Turn a $56,000 TFSA Into a Lasting Income Machine appeared first on The Motley Fool Canada.

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More reading

• 3 of the Best Canadian Stocks for a Buy and Hold in a TFSA
• 2 Dividend Stocks I’d Buy and Never Sell in an RRSP
• 2 Canadian Stocks Primed to Surge in 2026
• 3 All-Weather Stocks Canadians Can Confidently Buy Today
• 1 Canadian Dividend Stock Down 10% to Buy and Hold for Decades

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Canadian National Railway and Rogers Communications. The Motley Fool has a disclosure policy.