TFSA: 3 Canadian Stocks That Are Perfection With a $7,000 TFSA Investment

After an impressive run over the last few months, the Canadian equity markets have turned volatile amid easing metal prices and the appointment of Kevin Warsh – widely perceived as a hawkish policymaker – as the new Federal Reserve chair. Additionally, ongoing geopolitical tensions and the negative impact of protectionist policies on global economic growth are cause for concern.

Amid these uncertainties, investors need to be cautious when investing through their Tax-Free Savings Accounts (TFSA), as declines in stock prices and subsequent selling would not only lead to capital erosion but also a lower investor TFSA contribution limit. Against this backdrop, here are my three top picks for your TFSA.

Dollarama

Dollarama (TSX:DOL), a leading Canadian discount retailer, has adopted a highly efficient direct sourcing model, eliminating intermediary costs and strengthening its bargaining power. Combined with its streamlined logistics network, this model has helped reduce operating costs, enabling the company to offer a wide range of consumer products at attractive price points. Supported by its compelling value proposition, the retailer continues to deliver healthy same-store sales regardless of the broader macroeconomic environment.

Moreover, the Montreal-based retailer is steadily expanding its footprint in both Canada and Australia. It plans to increase its Canadian store count from 1,684 to 2,000 and its Australian store base from 401 to 700 by the end of fiscal 2034. Given Dollarama’s capital-efficient business model, rapid sales ramp-up, short payback periods, and relatively low maintenance capital expenditure requirements, these expansions are well-positioned to drive meaningful growth in both revenue and earnings.

In addition, Dollarama owns a 60.1% stake in Dollarcity, which operates 683 stores across five Latin American countries. Dollarcity is also pursuing an aggressive expansion strategy, with plans to increase its store count to 1,050 by the end of fiscal 2031. Dollarama also holds an option to raise its stake in Dollarcity to 70% by the end of next year. Given its strong financial performance and multiple growth avenues, I believe Dollarama would be an ideal addition to your TFSA.

Fortis

Second on my list is Fortis (TSX:FTS), which serves more than 3.5 million customers across the United States, Canada, and the Caribbean. The utility operates nine regulated electric and natural gas businesses, with most assets in low-risk transmission and distribution. Its regulated asset base makes earnings less sensitive to market volatility, helping Fortis deliver an average annual total shareholder return of 9.7% over the past 20 years. The company also boasts a 52-year streak of dividend growth and currently offers a forward yield of 3.6%.

Moreover, Fortis is advancing a $28.8 billion five-year capital investment program, expected to grow its rate base at an annualized rate of 7% to $57.9 billion by 2030. Combined with operational efficiency initiatives, preventive maintenance, and energy transition investments that generate fuel savings, these projects should support steady earnings growth. With management targeting 4–6% annual dividend growth through the rest of the decade, Fortis remains an excellent TFSA addition.

Waste Connections

Waste Connections (TSX:WCN), a leading solid waste management company, has delivered an impressive 18.4% annualized return over the past decade. Operating primarily in secondary and exclusive markets, the Toronto-based company faces limited competition and benefits from higher margins. It has expanded its footprint through organic growth and strategic acquisitions, completing over 100 deals since 2020 that added roughly $2.2 billion in annualized revenue.

Supported by strong cash flows and a solid balance sheet, management plans to maintain its active acquisition strategy. It has a healthy acquisition pipeline of private companies in the United States that can contribute $5 billion to its annualized revenue. In addition, investments in technologies such as robotics and optical sorting at recycling facilities, along with improved employee engagement and safety metrics, could further expand margins. Given these strengths, I believe Waste Connections is well-positioned to deliver superior returns regardless of broader market conditions.

The post TFSA: 3 Canadian Stocks That Are Perfection With a $7,000 TFSA Investment appeared first on The Motley Fool Canada.

Should you invest $1,000 in Dollarama Inc. right now?

Before you buy stock in Dollarama Inc., consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Dollarama Inc. wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,827.88!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 102%* – a market-crushing outperformance compared to 81%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of January 15th, 2026

More reading

• 3 Portfolio Protectors to Own in 2026
• How Does Fortis Stack Up Against Canadian Utilities Stock?
• The Only 3 Stocks I’d Consider Buying in February 2026
• Top Canadian Stocks to Buy Right Now With $5,000
• 3 Blue-Chip Dividend Stocks for Canadian Investors

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Dollarama and Fortis. The Motley Fool has a disclosure policy.