When it comes to investing in a Tax-Free Savings Account (TFSA), one of the smartest moves you can make is to find a company that combines long-term growth potential with steady income. While tech stocks and utilities tend to grab the headlines, there’s an overlooked giant on the TSX that deserves attention right now: Nutrien (TSX:NTR). If I had $7,000 to invest today with a goal of maximizing returns over the long haul while collecting some nice dividend income along the way, I’d be putting it into this Canadian agriculture powerhouse.
The stock
Nutrien is the world’s largest provider of crop inputs and services. It supplies over 500,000 growers through a network of more than 2,000 retail locations across North and South America, Australia, and other regions. Its main business involves producing and distributing essential fertilizers: potash, nitrogen, and phosphate. These are the basic ingredients farmers use to feed crops, which in turn feed people. No matter what the economic climate is doing, that’s not a demand that’s going away.
This is exactly what makes Nutrien a defensive play in a TFSA. It operates in an industry with structural long-term demand. As global populations rise and farmland becomes increasingly strained, agricultural efficiency becomes more important. Nutrien is a key part of that equation. It has a built-in tailwind that could drive growth for decades, not just quarters.
Into earnings
Let’s look at the numbers. In its most recent earnings report for the first quarter (Q1) of 2025, Nutrien posted US$852 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). While that’s down from last year’s results, the company still managed to generate US$19 million in net income, or US$0.02 per share. It was a challenging quarter marked by softer fertilizer pricing, but the company held its ground. More importantly, it reiterated its full-year 2025 guidance, which calls for improving volumes and stronger earnings as the year progresses.
In the same report, Nutrien stated that it plans to focus heavily on upstream fertilizer production and its downstream retail segment. That’s an encouraging sign because its retail arm is one of the most robust and profitable agricultural retail networks in the world. It generates stable revenue even in tougher times, which gives the company a nice balance of cyclical and defensive income streams.
Diverse income
On the shareholder side, Nutrien continues to reward investors. It has a dividend yield of roughly 3.7% at the time of writing, which is solid for a blue-chip company. That means your $7,000 investment would produce some strong dividends, tax-free if held in your TFSA. That dividend is also well-covered by earnings, meaning it’s not at risk of being cut even in tougher years. On top of that, the company recently repurchased 3.6 million shares for US$188 million, showing confidence in its valuation and a commitment to returning capital to shareholders.
Another strong point in Nutrien’s favour is its global exposure. Unlike many Canadian companies that are tied closely to domestic trends, Nutrien operates in diverse markets. It earns a significant portion of its revenue in U.S. dollars and other currencies, which provides a natural hedge against a weakening loonie. That makes it especially appealing to Canadian investors looking to guard against currency fluctuations inside a TFSA, where every dollar of value matters.
Bottom line
The company has also made some smart strategic moves lately. It sold its stake in Sinofert Holdings for US$223 million, freeing up capital that it can now reinvest in its highest-conviction opportunities. Nutrien’s management has been clear that its focus will remain on profitability, capital discipline, and strengthening its core business areas. That kind of clarity and strategic alignment is refreshing, especially when many other companies are chasing fads or cutting corners.
From a valuation standpoint, Nutrien isn’t the cheapest stock on the TSX, but it also isn’t expensive, considering its history, scale, and market position. With a market cap hovering around about $39.7 billion and steady cash flow, it’s priced for reliability rather than hype. That’s exactly the kind of stock you want sitting quietly in your TFSA, compounding wealth while you go about your day.
