Take Full Advantage of Your TFSA: Growth Strategies for 2025

A TFSA is one of the best ways investors can take advantage of long-term growth. So, let’s look at how investors can make that happen in 2025.

Amy Legate-Wolfe ❯

@amylegatewolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published March 31, 9:00 pm EDT

Maximizing your Tax-Free Savings Account in 2025 is one of the smartest things a Canadian investor can do. With the 2025 annual limit of $7,000 and a total of $102,000 in contribution room, if you’ve been eligible since 2009, there’s a real opportunity to grow your wealth. Without ever paying tax on those gains. So, what are some growth strategies to get investors started?

Starting out

To get the most out of your TFSA, start by focusing on strategies designed to make your money work harder. One of the best ways is to invest early and often. Regular contributions, even small ones, have more time to compound, and time in the market often beats timing the market.

Diversification is another simple but powerful approach. By holding a mix of stocks across different sectors and risk levels, you’re more likely to get solid returns over the long run — all while protecting yourself from too many surprises along the way. Growth-focused stocks tend to thrive in TFSAs, especially since you won’t be taxed on those gains. And if you pick dividend-paying companies, reinvesting those dividends can give your account an extra boost over time.

Now that we’ve covered the basics, let’s look at a few promising Canadian stocks on the TSX — ones that could be smart growth additions to your TFSA in 2025.

Four stocks to watch

Agnico Eagle Mines (TSX:AEM) is a gold producer with mines in Canada, Finland, and Mexico. It reported strong results in the fourth quarter of 2024, producing about 847,000 ounces of gold. The company kept costs in check, with a total cash cost of US$923 per ounce and all-in-sustaining costs of US$1,231. These numbers matter because they show how efficient Agnico is at managing its operations, even as gold prices fluctuate. The stock is now well-positioned for long-term gains.

Celestica (TSX:CLS) is a name you might not hear often, but it’s one of the fastest-growing stocks on the TSX right now. It provides manufacturing and supply chain solutions around the world. In the fourth quarter (Q4) of 2024, Celestica posted revenue of US$2.55 billion, up 19% from the year before. Earnings came in at US$1.11 per share, well above expectations. If you’re looking for a tech-related name with real momentum, this could be it.

Whitecap Resources (TSX:WCP) is an oil and gas producer with assets across Western Canada. Energy isn’t usually top of mind for growth investing, but Whitecap’s numbers suggest it deserves a second look. In Q4 2024, earnings hit $0.46 per share, beating estimates by a wide margin. The company returned over $560 million to shareholders last year and recently announced a merger with Veren. That deal is expected to boost production and efficiency, which could support even stronger results ahead.

Shopify (TSX:SHOP) continues to be a major player in the e-commerce space. In the final quarter of 2024, the company pulled in US$2.81 billion in revenue, a 31% increase from the year before. Earnings per share (EPS) came in at US$0.44, right in line with estimates. While some investors are cautious about its guidance for 2025, the company is still growing quickly and expanding into new areas like enterprise services. Shopify remains a higher-risk, higher-reward play, but in a TFSA, those gains could be worth the ride.

Bottom line

Choosing the right stocks for your TFSA takes some planning, but the payoff can be huge. Look for companies with strong earnings, clear growth paths, and sustainable business models. Whether you’re drawn to gold, tech, energy, or e-commerce, the Canadian market has solid options to help you grow your tax-free portfolio. Make the most of your contribution room this year. And let your money grow without the taxman ever taking a cut.