A lot of Canadians look at their annual TFSA (Tax-Free Savings Account) contribution room and feel underwhelmed. Sure, $7,000 might not seem like much, especially when you’re thinking about retirement that could be decades away. But the truth is that even small contributions can grow into something powerful when you combine smart investing with time and consistency.
Before I highlight one of the most reliable dividend stocks you can buy for your retirement, let’s quickly discuss how disciplined investing and time-tested principles could help you turn your TFSA contribution into a long-term retirement asset.
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Small habits, big results
That brings us to the part most TFSA investors tend to overlook — the power of a few smart habits repeated over time. Even if you’re starting with a small amount in your TFSA, say $7,000 this year, you’re not at a disadvantage. The real game-changer is what you do with that money and how long you give it to grow. And that’s exactly what the Foolish Investing Philosophy is all about.
That’s why one of the best things you can do is stay consistent. Regular contributions, no matter how small, let you take advantage of compounding, which is the process of earning returns on your returns. And inside a TFSA, that growth happens tax-free. Whether it’s from dividends, capital gains, or interest, every dollar earned stays in your corner.
While many investors think they need to time the market or wait for the perfect entry point, it’s often patience that delivers better results. Time in the market gives your investment more room to breathe and grow. It smooths out the noise and rewards long-term thinking. With a solid TFSA plan, even a modest start could turn into a solid retirement fund when given enough time.
Why this top dividend stock deserves a spot in your TFSA
And speaking of long-term thinking, let’s talk about Canadian Natural Resources (TSX:CNQ), a stock that could be a perfect fit for your TFSA.
It’s one of the most dependable energy producers in the country, with a strong track record of stable performance. Based in Calgary, the company focuses on oil sands, natural gas, and upgrading operations.
Its shares currently trade around $42.31 apiece and offer an attractive annualized dividend yield of 5.5%, paid every quarter. That’s already higher than what many fixed-income options are paying.
In the first quarter of 2025, the energy giant delivered record production levels and over $4.5 billion in adjusted funds flow. Its net profit came in at $2.4 billion, with nearly $1.7 billion returned to shareholders through dividends and share buybacks. This kind of financial performance is a major plus for long-term TFSA investors looking to reliably grow their retirement funds.
Whether it’s the long-life low-decline oil sands assets, disciplined growth approach, or 25 years of consecutive dividend increases, CNQ stock offers something rare – stability in a volatile market. And that’s exactly what helps small TFSA investments grow into something big over time.
