Protect Your Tax-Free Earnings: 2 TFSA Stocks to Buy Beyond the Boom

The Tax-Free Savings Account (TFSA) contribution limit will rise to $7,000 in the New Year. Canadian investors have a fresh opportunity to put more money to work beginning in January 2026. If you intend to invest in stocks, there’s a way to protect your tax-free earnings from market swings despite the expected continuation of the TSX’s bull run.

Rather than chasing momentum, a smart approach is to invest in TFSA-worthy stocks. Enbridge (TSX:ENB) and Fortis (TSX:FTS) stand out as reliable options that can help grow your gains steadily and safeguard them beyond the current market boom.

Defensive income and long-term stability

Enbridge is TSX’s fifth-largest company by market capitalization. This $141.6 billion energy giant is well-suited for TFSA investors. Its regulated pipeline and utility assets generate stable, predictable revenue and durable cash flows. At $64.88 per share, the dividend yield is 5.98%.

Note that ENB has raised dividends for 31 consecutive years. This streak makes it a resilient pick if your objective is to protect tax-free earnings. Another remarkable feat is achieving its financial guidance for 19 consecutive years. In addition to the cost-of-service and contracted cash flows (98%), the EBITDA from assets (80%) has built-in inflation protection.    

According to its president and CEO, Greg Ebel, Enbridge is the only company with a large energy infrastructure and significant footprint in North America. It can deliver gas, liquids, and renewable power to customers in Canada and the United States. He added that Enbridge will capitalize on the region’s growing energy demand, including new markets.

At the end of the third quarter (Q3) of 2025, Enbridge added approximately $7 billion to its secured project backlog. The cumulative sanctioned growth capital of $35 billion through 2030 is proof of revenue visibility. Ebel said further, “We believe that our formula of steady cash flow growth and annual dividend increases will continue to drive strong shareholder returns and position Enbridge as a first-choice investment.” 

Steady regulated growth and dividend strength

Fortis, a dividend knight, is the perfect complement to Enbridge. Because of its 52-year dividend-growth streak and regulated utility assets, expect growing income and dividend strength. The current share price is $70.64, while the dividend offer is 3.55%. Combined with ENB, the average dividend yield of 4.765% is very attractive to TFSA users.

The $35.7 billion electric and gas utility company owns and operates regulated utility businesses in various service territories. Fortis expects its new $28.8 billion five-year capital plan to increase the mid-year rate base from $41.9 billion in 2025 to $57.9 billion by 2030.

Management assures the 2026-2030 capital plan is low-risk and highly executable. About 77% of the total capital expenditure is investments in transmission and distribution assets. Its CEO, David Hutchens, confirmed that Fortis’s current portfolio is strong, as 100% of its assets are regulated.

For the benefit of investors, the dividend-growth guidance is 4% to 6% annually, also through 2030.

Secure tax-free earnings

With Enbridge and Fortis, TFSA investors can lock in steady dividends and long-term growth, regardless of investment size. Additionally, both stocks will enable tax-free earnings to compound safely, whether the market spikes or dips.

The post Protect Your Tax-Free Earnings: 2 TFSA Stocks to Buy Beyond the Boom appeared first on The Motley Fool Canada.

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More reading

• If Growth Is Your Game, We Have the Name of the Dividend Stock for You
• 2 Stocks Worth Buying and Holding in a TFSA Right Now
• Reality Check: 3 Stocks Retirees Can Count On in Uncertain Times
• 3 Dividend-Growing Canadian Stocks for Passive Income
• How to Turn a $15,000 TFSA Into $150,000

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