Building a $14,000 TFSA That Balances Income and Growth

When building a Tax-Free Savings Account (TFSA), striking a balance between income and growth can feel like trying to pat your head and rub your stomach at the same time. But it doesn’t have to be complicated. With the 2025 TFSA limit sitting at $14,000, there’s a real opportunity to build a strong portfolio using some of the most reliable companies on the TSX. Stocks like Fortis (TSX:FTS), Canadian National Railway (TSX:CNR), Brookfield Asset Management (TSX:BAM), and Canadian Natural Resources (TSX:CNQ) each offer something different. Together, these stocks can bring both stability and upside to your tax-free account.

Fortis

Fortis is the textbook definition of a Steady Eddie stock. As a North American utility giant, it delivers electricity and gas to millions of customers. It’s not flashy, but that’s the point. Fortis thrives on consistency, and it has now increased its dividend for 51 consecutive years.

In its latest earnings report for the first quarter of 2025, Fortis posted net earnings of $499 million or $1.00 per share, up from $459 million or $0.93 per share last year. Revenue came in at $3.34 billion, showing 7.1% year-over-year growth. With a forward dividend yield of around 3.8%, it provides a nice income stream, while its stable business model helps reduce portfolio risk.

CNR

Canadian National Railway brings a different strength to the table: growth from an industrial backbone. It owns and operates one of North America’s largest rail networks, and with supply chains shifting globally, that kind of infrastructure is increasingly valuable.

CN reported $4.4 billion in revenue for the first quarter of 2025, up 3.6% from the previous year. Its adjusted earnings per share (EPS) came in at $1.82, and it beat analyst expectations. The Canadian stock also improved its operating ratio, a measure of efficiency, to 63.4%. It pays a modest dividend yield of around 2.5%, but what you’re buying here is long-term capital appreciation with a stable base.

BAM

Brookfield Asset Management is a global player in alternative assets. It focuses on infrastructure, renewables, and real estate, sectors with long-term income potential. In the first quarter of 2025, BAM reported fee-related earnings of US$698 million, up 26% from the prior year. Its distributable earnings came in at US$654 million, a 20% increase.

With a quarterly dividend of $0.4375 per share and a forward yield around 3.2%, BAM is both a dividend payer and a growth story. As more institutions look to park money in real assets, BAM is well-positioned to benefit from that trend.

CNQ

Canadian Natural Resources offers exposure to the energy sector, which remains a powerful cash generator. CNQ is one of the largest producers of oil and natural gas in Canada, and it has a strong record of rewarding shareholders.

In its most recent quarterly earnings, CNQ delivered $10.9 billion in revenue, up 33% from the previous year. It posted adjusted net earnings of $2.4 billion, or $0.81 per share. Cash flow from operations hit $4.5 billion. The Canadian stock returned $1.7 billion to shareholders through dividends and buybacks. Its dividend yield is close to 5.1%, and it has increased its dividend every year for the past 25 years.

Bottom line

If you’re looking to invest $14,000 across these four companies, you might consider allocating about $3,500 to each. Fortis offers reliable income, CN brings long-term growth with stability, BAM offers diversified exposure to real assets, and CNQ adds high-yield energy upside. Together, this basket provides a balanced mix of dependable dividends and the potential for capital gains over time. In total, investors could earn $510.64 in dividends annually!

It’s a portfolio that won’t keep you up at night. You’ll collect dividends through economic cycles, while also benefiting from the growth trends tied to infrastructure, energy, and industrial logistics. And with the shelter of the TFSA, every dollar you earn stays in your pocket.