A Tax-Free Savings Account (TFSA) is one of the most flexible tools Canadians have for building wealth. It can hold stocks, exchange-traded funds (ETF), bonds, and even guaranteed investment certificates (GIC). But for those looking to build steady income and long-term value, one strategy is to put your full TFSA contribution into a single, high-quality dividend stock. If I were doing that today with $7,000, I’d choose Gibson Energy (TSX:GEI).
Why GEI
Gibson Energy is a midstream company. It doesn’t drill for oil or gas. Instead, it stores, processes, and moves it. That makes it a toll collector in the energy world. Whether oil prices are up or down, companies still need to move product. Gibson makes money from long-term contracts, not price speculation. This gives it reliable cash flow year after year.
Right now, the dividend yield on Gibson stock is around 7.4%. That’s based on a recent share price of about $21.80 and a dividend of $0.43. So, a $7,000 investment could bring in about $137.60 annually. And since it’s in a TFSA, that’s completely tax-free.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | INVESTMENT TOTAL |
|---|---|---|---|---|---|---|
| GEI | $21.80 | 320 | $0.43 | $137.60 | Quarterly | $6,976.00 |
Stable payments
In the first quarter of 2025, Gibson reported strong financial results. Revenue came in at $3.1 billion, up significantly from $2.5 billion the year before. Net income rose to $47.6 million, and earnings per share increased to $0.30, up from $0.25 in the same quarter last year. These numbers show that Gibson is growing, not just surviving.
One thing that makes Gibson stand out is the stability of its business. Around 85% of its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) comes from long-term, fee-based contracts. That’s what allows it to keep paying the dividend even when oil markets get shaky. It also helps explain how it has managed to pay dividends consistently since 2012, and why it has been able to grow the payout steadily over time.
More to come
Gibson also continues to invest in its infrastructure, including expansion at its Hardisty and Edmonton terminals. It recently announced a new diluent recovery unit project expected to come online in 2026, which could contribute additional earnings growth. This means future dividends could continue to grow if cash flow increases.
There are always risks. Energy infrastructure can face volume declines if producers cut output. And while Gibson isn’t directly tied to oil prices, a prolonged downturn in the oil sector could still impact future growth. However, the dividend stock’s long-term contracts help reduce this risk. It’s not immune to economic pressures, but it’s built to weather them.
Bottom line
For those seeking a safe place to earn income in a TFSA, Gibson Energy is hard to ignore. The combination of a high yield, growing cash flow, stable operations, and strong financials makes it a compelling all-in-one pick. There’s no tax drag, and every dollar earned through dividends stays in your account, compounding over time.
It’s tempting to diversify a TFSA across multiple stocks. But sometimes, one strong pick is enough, especially when that stock offers dependable income and the chance for capital gains. With its solid track record and smart growth strategy, Gibson fits the bill.
If I had $7,000 to invest today, I’d put it all into Gibson Energy and let the dividends do the heavy lifting. In five to ten years, that single decision could grow into a reliable, tax-free income stream that delivers peace of mind through all kinds of market conditions.
