Investors looking to establish a healthy Tax-Free Savings Account (TFSA) can take solace in knowing that the limit for 2025 is $7,000. Fortunately, there are more than a few top-tier TSX stocks to own to maximize that $7,000 contribution for 2025.
Here’s a look at three of those top-tier TSX stocks to buy as part of your $7,000 contribution for 2025.
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You need a recurring income from this gem
The first of those top-tier TSX stocks that investors need to consider is Enbridge (TSX:ENB). Enbridge is one of the largest energy infrastructure companies on the planet and is best known for its pipeline business.
That pipeline business, which includes crude and natural gas segments, generates a recurring revenue stream that is both stable and growing. That recurring revenue stream also lets Enbridge invest in further growth initiatives and pay out one of the best dividends on the market.
As of the time of writing, Enbridge’s quarterly dividend carries a yield of 6.13%. Oh, and let’s not forget that Enbridge has provided investors with annual upticks to that dividend going back three decades without fail.
Despite that defensive appeal and juicy yield, Enbridge still offers more. Investors should note that Enbridge also operates a growing renewable energy business and an impressive natural gas utility.
In short, Enbridge is one of the top-tier TSX stocks that should be a core holding in any well-diversified portfolio.
Adding a big bank can mean big income
You can’t mention top-tier TSX stocks without noting at least one of Canada’s big banks. And the big bank stock for investors to consider buying right now is Bank of Montreal (TSX:BMO). BMO is the oldest of the big banks, with a sprawling portfolio that stretches across Canada and into the U.S.
At home, BMO’s domestic network generates the bulk of the bank’s revenue stream. That revenue stream is both reliable and recurring, thanks to the mature and well-regulated market. More importantly, it provides BMO with significant defensive appeal and allows the bank to turn to international markets for growth.
The growth comes mainly from the U.S. market. Specifically, BMO’s acquisition of Bank of the West allowed the bank to expand into 32 state markets and become one of the largest lenders in the U.S.
To put it another way, that growth translates into millions of new customers and billions in loans and deposits.
In addition to that long-term growth appeal, BMO offers investors a tasty quarterly dividend. As of the time of writing, that dividend works out to an impressive 4.57%. And like Enbridge, BMO has an established cadence of providing investors with annual upticks to that dividend.
In short, BMO is one of the top-tier TSX stocks that investors contemplating where to spend that $7,000 contribution should consider.
End with a REIT on auto-pilot investment
One final investment for those seeking top-tier TSX stocks to own is RioCan Real Estate (TSX:REI.UN). real estate investment trusts (REITs) like RioCan generate a recurring revenue stream derived from the hundreds of properties in their portfolio.
In the case of RioCan, the REIT has over 180 properties across Canada that comprise both residential and commercial properties. On the commercial side, RioCan’s tenants include some of the largest names in retail and finance.
In other words, they are longer-term, more stable tenants that help the REIT generate a reliable recurring revenue stream.
Turning to the residential portfolio, that’s where things get interesting. RioCan’s increasing use of mixed-use properties comprises residential towers sitting atop several retail floors.
The properties are located in high-traffic metro areas that are appealing to both retail and residential occupants. The result for investors is an alternative to owning a rental property that pays out a monthly distribution, much like a landlord charging rent.
As of the time of writing, that distribution carries a tasty 6.25% yield.
Pick the top-tier TSX stocks for your portfolio.
The limit for TFSA contributions in 2025 is $7,000. In my opinion, any of the above investments can provide a lasting income, making them ideal for any long-term portfolio.
Buy them, hold them, and watch your income grow tax-free in your TFSA!
