Here’s Exactly How I’d Put $20,000 of TFSA Money to Work in 2026

After hitting a new record high in March 2026, the S&P/TSX Composite Index has slid down, come back up, and is sliding again. Many investors have seen steep losses each time equity securities have gone down during this volatile market environment. Many new investors, especially those who use their Tax-Free Savings Accounts (TFSA), are worried about a looming crisis.

Seasoned investors try not to get too worked up in these market conditions. Instead, their experiences tell them that this is as good a time as any to put their money to work in the market.

Granted, a return to normalcy in the geopolitical landscape doesn’t seem clear right now. That said, the market eventually has to stabilize because that is the cyclical nature of stock markets. Making investments that can help you weather the storm and emerge stronger on the other side is the best way to put your money to work right now.

Against this backdrop, here are two picks I would advise considering for your self-directed portfolio.

Fortis

Fortis (TSX:FTS) is one of the most attractive stocks to own during bear market conditions. The $38.57 billion market-cap company owns and operates several natural gas and electricity utility businesses across Canada, the U.S., and the Caribbean. All of its markets are highly rate-regulated, and its revenue comes from long-term contracted assets. This means Fortis generates predictable and stable cash flows.

With its cash flows clear, the company’s management can invest in capital programs and fund dividend growth comfortably. Fortis is a reliable dividend stock, boasting an over 50-year dividend-growth streak that has made it so popular among TFSA users.

As of this writing, it trades for $75.76 per share and pays $0.64 per share each quarter, translating to a 3.38% dividend yield that you can lock into your self-directed TFSA portfolio today.

Brookfield Renewable Partners

Brookfield Renewable Partners (TSX:BEP.UN) is a stock that you can consider investing in if you are bullish on the future of the renewable energy space. Brookfield Renewable is the leading publicly-traded company in the green energy space. The $30.98 billion market-cap company owns and operates a diversified portfolio of renewable energy facilities, including hydroelectric, solar, wind, and other sustainable solutions assets.

While it may take some time for the world to move away from fossil fuels and complete the transition to green energy, it is eventually happening. Companies leading the charge in this space today are well-positioned to leverage the boom that many believe is bound to happen at some point.

Brookfield Renewable is also a dividend stock, and it has increased payouts for 15 consecutive years, showing that it has a resilient business model that can sustain payouts. It can be an excellent investment to consider at current levels.

Foolish takeaway

Betting on the growing renewable energy space with Brookfield Renewable Partners and a reliable utility stock that pays virtually guaranteed and growing dividends can be an excellent way to use the market environment to your advantage. Held in a TFSA, these two TSX stocks can provide the perfect combination of regular income and long-term growth to unlock financial freedom, all without incurring taxes.

The post Here’s Exactly How I’d Put $20,000 of TFSA Money to Work in 2026 appeared first on The Motley Fool Canada.

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More reading

• Better Energy Stock: Canadian Natural Resources vs. Brookfield Renewable Partners
• Create Your Own Portfolio Dividend Yield With These 3 Incredible TSX Stocks
• 3 Dividend Stocks That Belong in Almost Every Investor’s Portfolio
• The Canadian Dividend Stock I’d Turn to First When Markets Start Getting Difficult
• 3 Strong Canadian Stocks That Raised Their Dividends — Again

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners and Fortis. The Motley Fool has a disclosure policy.