If you’ve been saving your hard-earned money in a Tax-Free Savings Account (TFSA) without investing in stocks, you’re missing out on one of the best wealth-building opportunities available to Canadians. While keeping cash in a TFSA protects it from taxes, investing in high-quality stocks allows you to multiply your savings over time.
With market uncertainties still present in 2025 due to ongoing macroeconomic challenges and escalating global trade tensions, you might want to choose strong, safe stocks that offer a mix of stability and long-term growth potential. In this article, I’ll highlight two top Canadian stocks that could help you maximize your TFSA, ensuring you make the most of its tax-free growth potential.
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Brookfield Asset Management stock
The first top stock TFSA investors can consider right now is Brookfield Asset Management (TSX:BAM). It’s a global alternative asset management giant with investments in real assets like infrastructure, real estate, and private equity.
After rallying by 46.4% over the last year, BAM stock currently trades at $81.43 per share with a market cap of $133.3 billion. It also rewards investors with a quarterly dividend and offers a 3.1% annualized yield.
Brookfield Asset Management delivered record-breaking results in 2024 as its net profit jumped by 18% YoY (year over year) to US$2.16 billion. Similarly, the company’s fee-related earnings surged 10% from a year ago to US$2.5 billion, and fee-bearing capital expanded by 18% YoY to US$539 billion. Last year, it also raised US$135 billion in new capital and deployed US$48 billion across high-growth sectors.
BAM’s long-term growth outlook remains strong as it recently closed a major transaction with Brookfield Corporation to simplify its structure and strengthen corporate governance. The company continues to focus on expanding its investment offerings, especially in renewable energy, infrastructure, and private equity segments. With a robust fundraising pipeline and long-term capital deployment strategy, Brookfield remains a top-tier choice for long-term TFSA investors.
TD Bank stock
Let’s move on to the second stock, Toronto-Dominion Bank (TSX:TD), which could be a smart addition to your TFSA portfolio. After declining by nearly 11% last year, the Canadian lending giant’s shares have already recovered by 11.4% so far in 2025. Note that last year’s decline in its stock was mainly due to investor concerns surrounding its U.S. anti-money laundering compliance issues, which resulted in large regulatory penalties. However, despite these temporary setbacks, TD remains one of Canada’s most stable financial institutions with a strong long-term outlook.
Currently, TD stock trades at $76.97 per share with a market cap of $134.7 billion. For income-focused investors, the bank continues to be an attractive pick, offering a 5% annualized dividend yield.
In its latest earnings for the quarter ended October 2024, TD reported a 26.8% YoY increase in net profit to $3.6 billion. This growth was mainly supported by strong performance in its Canadian personal and commercial banking division, which saw a record quarterly revenue of $5.06 billion.
As TD continues to focus on enhancing its digital banking services, optimizing its U.S. operations, and strengthening governance, its financial growth trends are likely to improve in the coming years, making it an attractive buy-and-hold stock for TFSA investors.
