The Tax-Free Savings Account (TFSA) gives Canadians a unique advantage when it comes to building long-term wealth. With the ability to grow your investments completely tax-free, the TFSA offers an unmatched opportunity to maximize gains and keep more of what you earn. However, to unlock the full potential of your TFSA, selecting the right stocks is important. As we head into 2025, opportunities on the TSX are plentiful. However, given the ongoing economic uncertainties, you may want to focus on stocks that offer resilience against market volatility and consistent dividends.
In this article, we’ll highlight two of the best TFSA stocks to own in 2025 that could help you achieve attractive tax-free gains in the long term.
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TC Energy stock
TC Energy (TSX:TRP) has outperformed the broader market by a wide margin in 2024. TRP stock has risen 40% year to date as of December 17, while the TSX Composite trades with nearly 20% gains. With this, the Calgary-headquartered energy firm’s stock currently trades at $65.90 per share with a market cap of $68.7 billion. Despite recent gains, TRP still offers an attractive 5% annualized dividend yield and distributes these payouts every quarter.
One of the strong aspects that makes TC Energy stock so attractive for TFSA investors heading into 2025 is the company’s consistent ability to deliver strong financial performance and project execution, even in challenging economic times. In the most recent quarter ended in September 2024, the company posted a 3.6% YoY (year-over-year) rise in its revenue to $4.1 billion as it continues to benefit from robust demand for natural gas and power infrastructure. Similarly, the company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed by 6% YoY to $2.8 billion, exceeding analysts’ expectations. Similarly, its adjusted EBITDA margin expanded to 68.4% last quarter from 66.8% a year ago.
Moreover, TC Energy’s focus on high-demand sectors like natural gas and power makes its growth outlook look promising. Notably, the company expects its comparable EBITDA to reach between $10.7 and $10.9 billion in 2025, driven partly by strong demand for liquefied natural gas exports. These positive factors may help TRP stock continue soaring.
Manulife Financial stock
Another stable dividend stock for long-term TFSA investors is Manulife Financial (TSX:MFC). With a market cap of $77.5 billion, MFC stock currently trades at $44.02 per share after gaining over 50% in value year to date. At this market price, it has a 3.6% annualized dividend yield.
Despite the uncertain macroeconomic environment, consistent strong demand for its insurance and wealth management services makes Manulife a reliable stock for TFSA investors in 2025. In the September 2024 quarter, the company delivered record core earnings of $1.8 billion, reflecting a 4% YoY increase due mainly to its exceptional performance in Asia, where annualized premium equivalent sales rose by 64% and new business value surged by 55%.
Overall, Manulife’s robust capital position and diversified business model give it the ability to continue performing well regardless of short-term economic fluctuations, making it a safe stock for long-term TFSA investors.
