The Best Way to Deploy $7,000 in Your TFSA This Month

Two top-performing stocks are profitable options for TFSA investors who have yet to deploy their 2025 annual contribution limit.

The Bank of Montreal Investment Survey revealed that more than 65% of Canadians are concerned about a potential recession in 2025. Nonetheless, despite this worry, the mindset of those with Tax-Free Savings Accounts (TFSAs) is to utilize and continue contributing to the tax-advantaged account.

While the stock market is often considered the gauge of a country’s economic health, it is not a perfect measure. The Toronto Stock Exchange has bucked significant headwinds, including U.S. tariffs and the Middle East conflict. As of this writing, Canada’s primary equities market is up nearly 8% at the close of June.

If you haven’t used your 2025 TFSA contribution limit, deploy $7,000 in the top performers. Tenaz Energy (TSX: TNZ) in the energy sector and gold miner Aura Minerals (TSX: ORA) have beaten the broad market thus far this year. Both stocks could increase the value of your investment tenfold, given their unstoppable momentum.

person on phone leaning against outside wall with scenic view at airbnb rental property

Source: Getty Images

Growth-and-income model

Tenaz Energy develops crude oil and natural gas at Leduc-Woodbend in Alberta and is the second-largest offshore gas producer in the Dutch North Sea. At $19.95 per share, the small-cap stock boasts a 42.2% year-to-date gain following a 53.9%-plus surge in the last three months.

The trailing one-year price return is 449.6%. Had you invested $7,000 on June 27, 2024, your money would be $38,471.07 today. TNZ’s overall return in three years is an astronomical 786.7%, representing a 106.4% compound annual growth rate (CAGR).

This $560.9 million energy company aims to become a leading intermediate-sized E&P (exploration and production) through its acquire-and-exploit strategy. Tenaz targets conventional and semi-conventional assets in overseas markets with the highest return opportunities.

The regions of focus are Europe, South America, and MENA (Middle East and North Africa). Management will capitalize on the sizeable market opportunity. It also aims to prioritize free cash flow (FCF) to support a balanced growth and income model.

Anthony Marino, President and CEO of Tenaz, said, “Our business model seeks to secure advantage in two ways that are differentially present in the international asset market.” Assets outside of North America have higher base rates of return on the initial acquisition investment. As the operator of the acquired assets, there is greater opportunity to improve the production and unit cost profile.

“Despite macro volatility, we believe market conditions remain favourable for disciplined acquisitions,” Marino added.

High-growth stock

Aura Minerals owns and operates gold and copper mines in Brazil, Honduras, and Mexico. The $2.7 billion mining company focuses on project development and operations in the Americas. Currently, it has four operating mines, two projects in development, two projects in the exploration phase, and a robust growth pipeline.

ORA ranked number one in the 2022 TSX30 List, the flagship program for Canada’s top 30 growth stocks. Its 10-year overall return is 8,296%-plus. At $35.66 per share, current investors are enjoying a 109.4%-plus market-beating return. A $7,000 investment at year-end 2024 would be worth $14,657.66 today. Additionally, this mining stock offers a lucrative 4.9% dividend yield.

In Q1 2025, Adjusted EBITDA reached US$295 million, a third consecutive record high. Aura’s ongoing exploration strategy focuses on near-mine expansion and resource conversion. Long-term growth will come from regional discoveries and strategic mergers and acquisitions.

Multi-baggers

Tenaz Energy and Aura Minerals are multi-bagger stocks, evidenced by their generous returns. Both remain solid investment prospects due to their strong growth potential.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Close up of an egg in a nest of twigs on grass with RRSP written on it symbolizing a RRSP contribution.
Dividend Stocks

The RRSP Deadline Is in March: Why Starting in November Gives You the Advantage

Many investors hold stocks like Shopify Inc (TSX:SHOP) in their RRSPs.

Read more »

groceries get more expensive as inflation rises
Dividend Stocks

What $25,000 in Manulife Could Add to Your Annual Dividend Income

A $25,000 Manulife budget provides about $755 annually, with a clear trade-off between spending and reinvesting.

Read more »

hand stacks coins
Dividend Stocks

Here Are the Highest-Yielding Dividend Stocks in Canada for November

Uncover the potential in dividend stocks. Learn why high yields of 8–10% come with risks, especially in inflationary times.

Read more »

man looks worried about something on his phone
Dividend Stocks

BCE: Buy, Sell, or Hold for 2027?

BCE (TSX:BCE) stock could be a massive dividend deal for the new year.

Read more »

Canadian investor contemplating U.S. stocks with multiple doors to choose from.
Dividend Stocks

Great-West Lifeco vs. Manulife: Which Insurance Stock Would I Buy for Income?

Manulife gets a narrow income preference, while Great-West offers a strong retirement-and-wealth alternative.

Read more »

man shops at grocery store
Dividend Stocks

Choice Properties Pays Monthly: Does the Yield Compensate for Higher Rates?

Choice’s yield deserves a closer look at cash after property spending and financing costs.

Read more »

senior man and woman stretch their legs on yoga mats outside
Dividend Stocks

Best Monthly Dividend Stocks on the TSX? My Top Picks for Today

Looking for monthly dividend income and an attractive growth profile? These two TSX stocks are my top picks today.

Read more »

oil pumps at sunset
Dividend Stocks

Canadian Natural Resources vs. Suncor: The Dividend Stock to Own Through 2026

Let’s compare Canadian Natural Resources and Suncor Energy across their financial performance, dividend track records, growth prospects, and valuations to…

Read more »