TFSA Investors: 1 Top Canadian Stock Worth Buying With $7,000

If you haven’t filled up your Tax-Free Savings Account (TFSA) with the recent contribution increase yet, there is no better time than the present. All income earned inside the TFSA is safe from tax.

A $7,000 contribution increase in 2026 doesn’t seem like much. However, if that $7,000 could be invested and grow by a 10% compounded annualized rate of return for 10 years, it could be worth as much as $18,156. That is an $11,156 capital gain!

If that was not inside a TFSA, you could be liable for a $2,231 tax bill (if your tax rate is 40%)! That would push down your total capital gain to only $6,694.

Save thousands of dollars by investing through you TFSA

Inside a TFSA that entire $11,156 gain is yours. You could use the proceeds to reinvest into other stocks and keeping the compounding process going. Or you can withdraw those funds from the account completely tax free.

The point in all of this is that the TFSA can save you thousand of dollars, especially if you are investing long term. If you want to compound wealth for retirement (or frankly anything), the TFSA needs to be a tool you maximize.

If you are looking for a stock that could compound by over 10% a year (like the investment discussed above), here is a top Canadian stock worth owning in a TFSA.

This top Canadian stock has compounded by 20% per annum for a decade!

WSP Global (TSX:WSP) has been one of Canada’s premium growth stocks. Its stock is up 495% in the past 10 years for a 20% compounded annual growth rate (double the rate of the investment above).

WSP has consolidated the engineering and advisory sector to become one of the largest firms in the world. After its recent TRC acquisition, WSP will be the largest engineering firm in the United States.

WSP is diversified across the world, so it gets to participate on a wide array of secular growth themes. These include urbanization, aging infrastructure renewal, water scarcity, climate change, electrification, and the AI infrastructure build out.

It just delivered great results for 2025. It grew net revenues by 14.6%, earnings by 41%, and free cash flow increased by a whopping 94%! Over the year, margins improved, and the company benefited from day sales outstanding declining to 63 days.

For 2026, WSP is looking to grow revenue organically by 15% and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) by 17%.

WSP stock has been pushed down by the artificial intelligence (AI) disruption trade. This Canadian stock is down 11% in the past month. Yet, in many ways AI is benefitting WSP’s business. Its backlog is rising from demand for data centre development services.

On the other side, AI is helping reduce menial tasks and improve efficiencies so that WSP’s professionals can focus on higher value services.

At 20 times earnings, WSP is trading at its cheapest valuation in five years. Its business is significantly better than five years ago. If anything, it deserves a premium today (especially given its solid growth momentum).

The Foolish takeaway

If you are looking for a solid Canadian stock that could compound steadily in a TFSA, WSP is one of the best you can find today. It is growing by the double digits and trades at an attractive valuation. It’s the perfect stock to buy with your $7,000 TFSA contribution right now.

The post TFSA Investors: 1 Top Canadian Stock Worth Buying With $7,000 appeared first on The Motley Fool Canada.

Should you invest $1,000 in WSP Global right now?

Before you buy stock in WSP Global, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and WSP Global 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 $20,155.76!*

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* Returns as of February 17th, 2026

More reading

• Where to Invest $3,000 in March 2026
• This TSX Pair Will Power Canada’s Nation-Building Push in 2026
• 3 Stocks for Canada’s Infrastructure Spending Boom
• TFSA Investors: 1 “Set it and Forget it” Stock for 2026
• These Stocks Could Power Canada’s Nation-Building Push in 2026

Fool contributor Robin Brown has positions in WSP Global. The Motley Fool recommends WSP Global. The Motley Fool has a disclosure policy.