2 TFSA Stocks to Buy Right Now With $7,000

The TFSA is an excellent vehicle for growing wealth, allowing you to harness the benefits of tax-free earnings by investing in strong, high-potential stocks.

| More on:
TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Tax-Free Savings Account (TFSA) is one of the best places for Canadian investors looking to grow their wealth. With the benefit of tax-free earnings on interest, dividends, and capital gains, TFSAs allow for a wide range of investment options.

Historically, stocks have outperformed other asset classes over the long term, making them an excellent choice for this tax-advantaged account. If you have $7,000 to invest, consider spreading it across stocks that show strong potential. Here are two stocks that appear to be good buys right now, as they are driven by profitable businesses and still trade at reasonable levels.

Kinaxis: A leader in supply chain solutions

Based in Ottawa, Kinaxis (TSX:KXS) is revolutionizing the supply chain management landscape through innovative technology and artificial intelligence. The company’s flagship product, RapidResponse, helps organizations optimize their supply chains by providing real-time data and predictive analytics.

With clients ranging from aerospace and defence giants like Lockheed Martin to consumer product leaders like Procter & Gamble, Kinaxis has established itself as a critical player across diverse sectors, including automotive, technology, and life sciences.

Despite its solid offerings, Kinaxis has seen its stock price trade within a sideways range since the pandemic-driven market surge in 2020. However, recent developments suggest that a significant upward movement could be on the horizon. 

Just a few days ago, Reuters reported that a hedge fund urged Kinaxis to explore potential acquisition offers, indicating that the company could attract the attention of major investors. Regardless of the buyout potential, analysts predict 12-month upside prospects of approximately 16% from its current price of $163.91 per share, making it an attractive buy for those looking to capitalize on price gains.

Investing in Kinaxis not only positions you in a company with strong fundamentals but also taps into the growing demand for supply chain optimization solutions. As companies increasingly seek to enhance efficiency and resilience in their operations, Kinaxis stands ready to deliver. Adding the tech stock to your TFSA could provide solid returns while benefiting from the tax advantages of the account.

Brookfield Infrastructure Partners: Where stability meets growth

For investors seeking more stable returns in their TFSAs, Brookfield Infrastructure Partners (TSX:BIP.UN) may be your stock. This company operates a diversified portfolio of high-quality infrastructure assets that generate reliable cash flows. Its operations span multiple sectors, including utilities, midstream, transport, and data infrastructure, that are primarily backed by long-term contracts and regulations.

At a current unit price of $45.44, Brookfield Infrastructure Partners provides a nice cash distribution yield of 4.8%. This makes it an attractive choice for investors seeking income in addition to capital appreciation.

What sets Brookfield apart is its disciplined value-investing approach, acquiring high-quality assets that deliver strong internal growth. This strategy not only allows the company to maintain robust cash flows but also to increase its cash distribution sustainably by an anticipated 5-9% annually.

Investing in Brookfield Infrastructure Partners can offer a hedge against market volatility, as infrastructure assets tend to be less sensitive to economic downturns. Their essential nature ensures a steady demand, making them a reliable source of income. In a TFSA, this stock could serve as a cornerstone for a balanced portfolio, providing both stability and growth potential.

The Foolish investor takeaway

With $7,000 to invest, consider the long-term benefits of incorporating both Kinaxis and Brookfield Infrastructure Partners into your TFSA. Kinaxis offers exposure to the growing tech sector and supply chain optimization, while Brookfield provides stability and income through its diversified infrastructure portfolio.

Together, these stocks not only align with the advantages of the TFSA — namely tax-free growth — but also position your investments for potential appreciation in a changing market landscape. As you make your investment decisions, think of your financial goals and risk tolerance to ensure these selections complement your overall strategy.

Should you invest $1,000 in Slate Grocery Reit right now?

Before you buy stock in Slate Grocery Reit, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Slate Grocery Reit wasn’t one of them. The Top 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 $21,058.57!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 38 percentage points since 2013*.

See the Top Stocks * Returns as of 2/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Kay Ng has positions in Brookfield Infrastructure Partners and Kinaxis. The Motley Fool recommends Brookfield Infrastructure Partners, Kinaxis, and Lockheed Martin. The Motley Fool has a disclosure policy.

If You Thought Apple and Microsoft Were Big, You Need to Read This.

The steel industry produced the world's first $1 billion company in 1901, and it wasn't until 117 years later that technology giant Apple became the first-ever company to reach a $1 trillion valuation.

But what if I told you artificial intelligence (AI) is about to accelerate the pace of value creation? AI has the potential to produce several trillion-dollar companies in the future, and The Motley Fool is watching one very closely right now.

Don't fumble this potential wealth-building opportunity by navigating it alone. The Motley Fool has a proven track record of picking revolutionary growth stocks early, from Netflix to Amazon, so become a premium member today.

See the 'AI Supercycle' Stock

More on Investing

A plant grows from coins.
Energy Stocks

This 8.3% Dividend Stock Pays Cash Every Month!

Whether you're in it for the growth or the dividends, this energy stock has everything investors need.

Read more »

edit Safe pig, protect money
Investing

3 Ways to Protect Your Wealth From Trump Tariff Uncertainty 

While Trump tariffs have not yet created any major downturn, it is always better to be prepared for uncertainty.

Read more »

grow money, wealth build
Stocks for Beginners

Got $3,000? 3 Growth Stocks to Buy and Hold Forever

While these growth stocks have underperformed the TSX in recent years, they have the potential to deliver solid returns in…

Read more »

dividends grow over time
Stocks for Beginners

3 Monster Stocks to Hold for the Next 10 Years

Are you looking for some monster stocks to hold in your portfolio? The market is full of great options, but…

Read more »

cryptocurrency, crypto, blockcahin
Top TSX Stocks

3 Top Canadian Stocks to Buy With $500

Are you looking to invest in opportunistic stocks that could generate strong returns? Here are some Canadian stocks to consider.

Read more »

3 colorful arrows racing straight up on a black background.
Bank Stocks

A Momentum Stock That’s Actually Still Quite Cheap

CIBC (TSX:CM) stock looks like a cheap momentum bet for 2025.

Read more »

senior man smiles next to a light-filled window
Dividend Stocks

The Top Canadian Stocks to Buy Right Now With $2,000

These two Canadian stocks offer it all – growing industries that remain essential, plus high dividends. So what are you…

Read more »

hand stacking money coins
Investing

Undervalued TSX Leaders for Long-Term Wealth Building

While these stocks are trading cheap, they have significant room for growth, making them solid investments for wealth creation.

Read more »