The Tax-Free Savings Account (TFSA) is an excellent investment tool for Canadian investors looking to grow their wealth tax-free. In 2025, the maximum TFSA contribution limit is set at $7,000, presenting a solid opportunity to invest in high-quality stocks with strong fundamentals, solid earnings, and long-term growth potential. Against this background, here are two TSX stocks to consider now.
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TSX stock #1
goeasy (TSX:GSY) is a solid growth and income stock to buy with your TFSA contribution limit in 2025. This subprime lender consistently delivers strong revenue and earnings growth. Thanks to its solid financials, goeasy stock has significantly outperformed the TSX with its capital gains. Moreover, it returned higher cash to its shareholders through increased dividend payments.
Over the past five years, goeasy’s top line has grown at a compound annual growth rate (CAGR) of 20%, while its earnings per share (EPS) have expanded at an even higher CAGR of 28.7%. This financial strength has translated into a staggering 188.6% increase in its stock price in the last five years. This reflects a CAGR of about 23.6%, which far exceeds the broader market. Beyond capital gains, goeasy has consistently increased its dividend during the same period.
This momentum in goeasy’s business will likely sustain. The company, with its wide product range and omnichannel offerings, will likely capitalize on the large subprime lending market. Additionally, goeasy will benefit from diversified funding sources, which will enhance its lending capacity and allow it to capitalize on emerging opportunities.
While its top line could sustain double-digit growth, goeasy’s bottom line will likely benefit from higher revenue, its focus on high-quality loans, a solid credit portfolio, and strong underwriting capabilities. Further, operating efficiency will cushion its bottom line and support higher dividend payouts. It currently offers a quarterly dividend of $1.17 per share, reflecting a yield of 2.8%.
Overall, goeasy is a solid long-term stock for TFSA investors to generate tax-free capital gains and dividend income.
TSX stock #2
Loblaw (TSX:L) is another top stock to add to your TFSA portfolio for stability, income, and growth. This leading food and pharmacy company operates a defensive business that generates steady growth in all economic conditions. Thanks to its strong financials, shares of this Canadian blue-chip company consistently deliver above-average returns.
Loblaw stock has increased at a CAGR of 22.1% in the last five years, delivering overall capital gains of 172.3%. Moreover, its strong earnings and cash flows enabled it to reward its shareholders with regular dividend payments and share buybacks.
Loblaw’s ongoing expansion of its hard discount stores, extensive product selection, and competitive pricing strategy will remain key drivers of customer traffic and drive retention rates. Additionally, the company is focusing on strengthening its omnichannel capabilities and expanding the presence of its private-label brands. These strategic efforts are expected to elevate the customer shopping experience, support same-store sales growth, and enhance its profitability.
Moreover, Loblaw is optimizing its retail network and expanding its store footprint, which positions it well to deliver sustainable sales and earnings growth in the coming years.
