How I’d Invest $20,000 of TFSA Cash in 2026

The TSX hit a new record close on March 2, 2026, but suffered steep losses in the succeeding trading days due to extreme volatility. Investors, including Tax-Free Savings Account (TFSA) users, fear a looming energy crisis and potential inflationary environment.  

If you have $20,000 cash in your TFSA and plan to invest it to shield against both headwinds, adopt a defensive posture. Focus on companies with reliable cash flows. You can weather the storm until the global situation stabilizes.

Hedge against the energy crisis

Enbridge (TSX:ENB) forecast steady, predictable growth in 2026 before the latest war in the Middle East began. Management also targets 4% to 6% growth in adjusted earnings and 3% for distributable cash flow (DCF). According to its CEO, Greg Ebel, the tailwinds include strong utilization and optimization of existing assets as well as $8 billion in new projects entering service.

As of this writing, ENB is up 13.1% year-to-date, notwithstanding the market downturn. At $73.30 per share, the dividend yield is 5.3%. In 2025, the $160.3 billion energy infrastructure giant achieved its financial guidance for the 20th consecutive year and announced the 31st consecutive annual dividend increase.

Ebel said in a press release, “Despite tariffs and geopolitical tension, 2025 showcased our low-risk commercial framework delivering predictable results amid macroeconomic uncertainty.” ENB is a hedge against the 2026 energy crisis.

Low-risk profile

Emera (TSX:EMA) is among the top candidates in a defensive TFSA. Like Enbridge, this $21.5 billion energy and services company had a milestone year in 2025. Its President and CEO, Scott Balfour, said, “For the first time, we exceeded $1 billion in annual adjusted net income and saw a 19% increase in average adjusted earnings per share (EPS) over 2024.”

In the 12 months ending December 2025, net income climbed 105.3% year-over-year to $1 billion, including a $41 million mark-to-market gain. Balfour added that the strategic investments in the business aim to strengthen Emera’s essential infrastructure.

If you invest today, the share price is $70.84 (+5.9% year-to-date), with a dividend yield of 4.1%. Notably, the utility stock boasts 19 consecutive years of dividend increases. Emera expects the $20 billion five-year capital plan (2026–2030) to drive rate base growth by 7% to 8% through 2029 and support its 1% to 2% annual dividend growth guidance.

Portfolio stabilizer

Expect consumer spending to cool in 2026 as Canadians tighten their belts. Meanwhile, Loblaw (TSX:L) has a good grasp of the prevailing sentiment. Its CEO, Per Bank, said, “We know that affordability is so important for many households, and that’s why we expanded our hard discount network.”

In fiscal 2025 (12 months ending January 31, 2026), retail revenue and net earnings increased 6.3% and 23.8%, respectively, to $63.9 billion and $2.7 billion. The $73 billion grocery chain operator also opened 48 additional hard discount stores during the year.

Loblaw is a portfolio stabilizer and complements Enbridge and Emera in a TFSA portfolio. At $63.09 per share, the dividend yield is modest but safe at 0.91% (26% payout ratio).

Defensive fortress

A $20,000 TFSA allocation split across Enbridge, Emera, and Loblaw forms a defensive fortress. While the stocks are not immune to market volatility, TFSA investors can expect continuous, reliable income streams that serve as a robust buffer against inflation.

The post How I’d Invest $20,000 of TFSA Cash in 2026 appeared first on The Motley Fool Canada.

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More reading

• 5 Dividend Stocks Everyone Should Own
• TFSA Investors: The CRA Is Watching These Red Flags
• 2 Canadian Dividend Giants I’d Buy With Rates on Hold
• 2 Canadian Dividend Stars That Still Offer a Good Price
• My 3-Stock TFSA Game Plan for 2026

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Emera and Enbridge. The Motley Fool has a disclosure policy.