3 Canadian Stocks to Consider Adding to Your TFSA in 2025

Global equity markets have become volatile over the last few weeks. The slowdown in monetary easing initiatives by the United States Federal Reserve and uncertainty over the impact of the proposed imposition of tariffs on imports by the Donald Trump administration have made investors nervous. Meanwhile, investors should be careful while investing through a TFSA (tax-free savings account) as a decline in the prices of stocks invested through a TFSA and subsequent selling could lead to a decrease in your contribution limit.

Against this backdrop, I believe the following three stocks would be excellent additions to investors’ TFSAs.

Waste Connections

Waste Connections (TSX:WCN) is an enticing buy due to its highly defensive business, solid financial growth, and healthy growth prospects. The waste management company operates in exclusive and secondary markets across the United States and Canada, facing lesser competition and enjoying higher margins. It has expanded its footprint through organic growth and strategic acquisitions, driving its financials. Amid solid financial growth, the company has delivered 485% returns in the last 10 years at an annualized rate of 19.3%.

Moreover, WCN continues investing in renewable natural gas and recycling facilities and adopting technological advancements to boost its topline and operating efficiency. Its employee retention has also improved as a result of its innovative approaches towards employee engagement. Along with these initiatives, increased core pricing and continued acquisitions could continue to drive its financials in the coming quarters. The company has witnessed some selling over the last few weeks, with its stock price falling by over 6% compared to its November highs. Considering all these factors, I believe WCN would be an attractive buy right now.

Hydro One

With 99% regulated assets, Hydro One (TSX:H), a pure-play electricity transmission and distribution company with no material exposure to commodity price fluctuations, would be my second pick. Given its low-risk, regulated business, the company generates stable and predictable cash flows. Also, its expanding rate base, which has grown at an annualized rate of 5% since 2018, and cost-cutting initiatives have boosted its cash flows, thus allowing it to raise its dividends at a 5% CAGR (compound annual growth rate) since 2016. With a quarterly dividend of $0.3142/share, the company’s dividend yield stands at 2.9%.

Moreover, electricity demand is increasing amid rising income and increased electrification due to growing awareness and favourable government policies, thus raising the demand for Hydro One’s services. Meanwhile, the utility company has also planned to invest around $11.8 billion from 2023 to 2027, expanding its rate base at an annualized rate of 6%. Besides, its improving operating efficiency and cost-cutting initiatives could boost its financials. Management projects 5–7% annualized EPS (earnings per share) growth until 2027 and hopes to raise its dividends at an annualized rate of 6%.

Enbridge

I have chosen Enbridge (TSX:ENB), which has a long dividend payment and growth history, as my final pick. The diversified energy infrastructure company earns around 98% of its cash flows from regulated assets and long-term contracts. So, it generates healthy cash flows, irrespective of the broader market conditions, thus allowing it to pay dividends consistently. It has paid dividends uninterruptedly for 69 years and has raised the same for 30 years. ENB currently offers a healthy dividend yield of 6%.

Moreover, Enbridge is continuing with its $26 billion capital expenditure plan and expects to put $6 billion of projects into service this year. Besides, it recently acquired three natural gas utility assets, which could further strengthen its cash flows and lower business risks. Along with these growth initiatives, its cost optimization initiatives could boost its earnings and cash flows. Considering all these factors, I believe Enbridge could continue its dividend growth, thus making it a worthy addition to your TFSA.