Investing $50,000 in your Tax-Free Savings Account (TFSA) this year is a fantastic way to grow your money without paying any taxes on the gains! With a bit of smart planning, you can create a diverse portfolio that aims for both regular income and long-term growth. Let’s explore a fun strategy to spread these funds across five well-known Canadian stocks, each being a pretty big player.
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Enbridge
First up is Enbridge (TSX:ENB). Think of Enbridge as a major highway system for energy, based right here in Calgary. It operates the world’s longest network of pipelines for crude oil and other liquids, moving about 30% of North America’s crude oil and 20% of the natural gas used in the U.S. That’s a lot of energy!
What’s really cool is its amazing 30-year history of increasing dividends, and right now, it offers a yield of around 6.1%. In its latest financial report, Enbridge said it earned $0.75 per share for the period ending December 31, 2024, which is what analysts were expecting. The stock is also trading above some key trend lines, suggesting positive momentum. Enbridge’s business is largely based on fees and it has invested a lot in infrastructure, which helps it ride out market ups and downs.
Big Banks
Next, we have Royal Bank of Canada (TSX:RY), or RBC, for short. RBC is the biggest bank in Canada when you look at how much the company is worth on the market. It offers all sorts of financial services, from everyday banking to wealth management. In its most recent earnings report, RBC recorded a net income of $4 billion, or $2.74 per share, for the three months ending April 30, 2024.
That’s up from the year before! The bank also gave its quarterly dividend a little boost of 2.9% to $1.42 per share, showing it’s doing well financially. RBC’s diverse business and consistent profits make it a solid choice for investors looking for stability and a growing dividend income.
We also have Toronto-Dominion Bank (TSX:TD). TD is another one of Canada’s big banks, offering a wide range of financial goodies. In its first-quarter 2025 earnings report, TD reported a net income of $3.3 billion, or $1.77 per share, which is pretty much the same as the year before. The bank kept its quarterly dividend steady at $0.89 per share. TD has a strong presence in retail banking both in Canada and the U.S., and it’s known for managing risk carefully, which provides a solid base for future growth and stable dividends.
Shopify
Now for something a bit different: Shopify (TSX:SHOP). Shopify is a Canadian tech superstar that helps businesses set up online stores and point-of-sale systems. So, if you’ve ever bought something online from a smaller business, chances are Shopify was involved!
In its fourth-quarter 2024 earnings report, Shopify reported a whopping US$2.8 billion in revenue, a 31.2% jump from the same time last year! Its adjusted earnings per share (EPS) were US$0.44, right in line with what analysts were expecting. Even with some mixed opinions about what the future holds, Shopify’s huge revenue growth shows it’s a leader in the booming world of e-commerce. If you want a piece of the digital shopping action, Shopify’s growth could be appealing.
CNR
Our last option is Canadian National Railway (TSX:CNR), or CN Rail. Think of CN as a vital artery for North American trade, moving goods across the continent. In its fourth-quarter 2024 earnings report, CN reported revenue of C$3.8 billion, a 4% increase compared to the same period in 2023. Its adjusted earnings per share were C$1.71, beating what analysts were expecting.
CN’s extensive network of tracks and efficient operations mean it’s in a good position to benefit from a growing economy and more trade. The company also consistently pays dividends and is committed to giving returns to shareholders, making it attractive for long-term investors. So with all five stocks lined up, you’ll certainly create a diversified and strong TFSA – one that can stand the test of time.
