The Best Stocks to Invest $2,000 in a TFSA Right Now

When you only have $2,000 to invest in a Tax-Free Savings Account (TFSA), the best stocks tend to share a few simple traits. They run businesses you can explain in one sentence, earn steady cash, not hype-driven promises, and can survive slowdowns without forcing you to panic sell. For many Canadians, that means prioritizing reliability over excitement, especially when every dollar matters. A smaller investment works hardest when it stays invested, compounds quietly, and does not demand constant attention. So, let’s look at a few that work marvellously.

H

Hydro One (TSX:H) fits that idea almost perfectly. It owns and operates much of Ontario’s electricity transmission and distribution network, so demand stays steady no matter what the economy does. Recent earnings continued to show predictable growth driven by regulated rate increases and ongoing infrastructure investment. Revenue trends remain stable, and earnings have held up even as higher interest rates pressured more cyclical sectors. The stock’s performance over the past year has reflected that stability, moving without the sharp swings seen in banks or tech.

From a fundamentals perspective, Hydro One benefits from a regulated business model that provides visibility into future cash flow. Capital spending remains elevated as the company modernizes the grid, but those investments come with approved returns. Debt levels are higher than average, which is normal for utilities, yet cash flow comfortably supports operations and dividends. The valuation sits above the market average, but investors often accept that trade-off for consistency and lower risk.

For a $2,000 TFSA investment, Hydro One works because it removes complexity. You aren’t guessing about consumer behaviour or global demand, but owning essential infrastructure tied to population growth and electrification. The dividend adds a modest income stream, and any growth stays tax-free. It may not feel thrilling, but boring can be powerful when you are building long-term wealth.

NWC

North West Company (TSX:NWC) offers a different kind of simplicity. It operates grocery and everyday goods stores in rural and northern communities in Canada, Alaska, and other regions where competition is limited. Recent earnings showed steady revenue growth and resilient margins, even as food inflation and logistics costs stayed elevated. The company’s performance over the past year reflected its defensive nature, with less downside than many consumer discretionary stocks.

Fundamentally, NWC benefits from necessity-driven demand. People still need food, household goods, and pharmacy items regardless of economic conditions. The company has pricing power in remote markets and continues investing in supply chain efficiency. Its dividend yield remains attractive, and management has a long history of maintaining payouts through different economic cycles. Valuation looks reasonable relative to its stability, especially compared with more volatile retail names.

As a TFSA holding, NWC makes sense for a $2,000 investment because it combines income with durability. Dividends received inside the TFSA stay sheltered, and the business does not rely on rapid growth to justify its share price. Risks exist, including exposure to freight costs and currency movements, but the core model remains dependable. For investors who want income and resilience without complexity, NWC checks important boxes.

Bottom line

Putting $2,000 to work in a TFSA is less about finding the next big winner and more about choosing stocks you can stick with. Hydro One offers regulated stability and essential infrastructure. North West Company offers defensive income and everyday demand. Both reward patience, not prediction, and create ample income from a $2,000 investment.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTNWC$49.4540$1.64$65.60Quarterly$1,978.00H$54.0137$1.33$49.21Quarterly$1,998.37

When simplicity keeps you invested and tax-free compounding does the rest, that small starting amount can matter far more than it first appears.

The post The Best Stocks to Invest $2,000 in a TFSA Right Now appeared first on The Motley Fool Canada.

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More reading

• Got $1,000? These Canadian Stocks Look Like Smart Buys Right Now
• 3 TSX Stocks to Prepare for a Potential Bear Market
• 2 TSX Giants to Buy and Hold for the Next 20 Years
• Forget Risk: 3 Safe Stocks Canadians Can Buy for Steady Returns
• 2 Superbly Simple Canadian Stocks to Buy With $2,000 Right Now

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends North West. The Motley Fool has a disclosure policy.