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

Are you scouting the market to see where you can best utilize your 2026 Tax-Free Savings Account (TFSA) annual limit? The TSX’s energy sector continues to outperform, although a sharp correction in oil prices is possible once the war in Iran ends. A safer alternative worth buying with $7,000 is a defensive stock in the Utilities sector.

Brookfield Renewable Partners (TSX:BEP.UN) will help you forget the FOMO (fear of missing out) feeling on energy gains. The premier utility stock continues to beat the broader market thus far in 2026. At $46.95 per share, the year-to-date gain is 28% compared to the TSX’s 7% return.

Furthermore, the dividend yield is an enticing 4.7%. A $7,000 investment today will generate $81.37 in tax-free income every quarter ($325.50 annually). Further price appreciation is a welcome bonus.

Strong start to 2026

Brookfield Renewable delivered robust financial results in Q1 2026, particularly a significant increase in funds from operations (FFO). In the three months ending March 31, 2026, FFO increased 19% year-over-year to a record US$375 million. Available liquidity at the quarter’s end was over US$4.7 billion.

According to its CEO, Connor Teskey, growing energy demand is occurring alongside a renewed focus on energy security. “In an environment with strong demand for low-cost, quick-to-market, and increasingly locally sourced energy, we are well positioned to deliver sustainable long-term cash flow growth for our investors,” he added.

Tesky credits Brookfield’s diverse global fleet and contracted, inflation-linked cash flows, as well as recent acquisitions, for the strong quarterly results. The financial strength can sustain dividend payments and support the annual dividend growth guidance of 5% to 9%.

On March 25, 2006, Brookfield, along with La Caisse, a Canadian public pension fund manager, entered a definitive agreement to acquire Boralex. The renewable energy producer will operate as an independent private company after the transaction closes in Q4 2026.

Massive development pipeline

Brookfield’s development pipeline, both projects under construction and in advanced development (80 gigawatts), has reached a massive scale (total 200 gigawatts). The new capacity coming online over the next several years provides visibility into future cash flows.

During the earnings call, Patrick Taylor, Managing Partner and Chief Financial Officer of Brookfield’s Energy Group, said, “We remain focused on delivering 12% to 15% long-term total returns for our investors, supported by our strong operating platform, disciplined capital allocation and our growing capital recycling program.”

Big Tech deal

In November 2025, Brookfield Renewable Partners signed a historic partnership with Microsoft. The deal involving 10.5 gigawatts of new renewable energy capacity to power the tech giant’s AI data centres is a growth catalyst for BEP.UN this year.

The $13.5 billion renewable energy company deal has ventured into the digital economy, which offers long-term growth. A broader agreement was signed beforehand covering a hydroelectric facility.

Business is as strong as ever

TFSA investors can take a cue from Teskey, who assured that the operating fundamentals and the business’s organic growth profile are as strong as they’ve ever been. Clearly, Brookfield Renewable Partners is the top Canadian stock to buy 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 Brookfield Renewable Partners right now?

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* Returns as of April 20th, 2026

More reading

• Here’s Exactly How I’d Put $20,000 of TFSA Money to Work in 2026
• Better Energy Stock: Canadian Natural Resources vs. Brookfield Renewable Partners
• 5 TSX Dividend Stocks I’d Move Quickly to Buy on Any Market Pullback
• Got $10,000? Here’s a Simple TFSA Plan for Income and Growth
• 3 Canadian Stocks That Could Help Build Generational Wealth

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners and Microsoft. The Motley Fool has a disclosure policy.