Your Tax-Free Savings Account (TFSA) is a powerful wealth-building tool that works best when you pair it with stocks that can deliver for decades. That’s why instead of looking at quarterly gains or market momentum, you may want to search for businesses that can keep growing 5, 10, even 20 years down the road. And if they pay a solid dividend in the meantime, all the better.
In this article, I’ll highlight an exceptional dividend-paying stock that I believe could grow inside your TFSA for decades and help you build real wealth in the process.
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Why Brookfield Renewable stock fits the blueprint
One stock that ticks all the right boxes for a long-term TFSA investment is Brookfield Renewable Partners (TSX: BEP.UN). The company owns one of the world’s largest publicly traded platforms for renewable power and sustainable energy solutions. Its large asset base includes hydro, wind, solar, and energy storage facilities globally. In addition, it’s also increasingly investing in emerging segments like carbon capture and nuclear services.
After rallying by 25% over the last three months, Brookfield Renewable’s TSX-listed stock trades at $37.32 per share, with a market cap of $10.6 billion, and offers a juicy annualized dividend yield of 5.5%. That kind of yield, combined with long-term growth prospects, makes it really appealing for TFSA investors looking to create wealth in the long run.
Riding the wave of global energy demand
The recent strong momentum in this renewable energy stock is mainly backed by its strong operating results, smart acquisitions, and growing investor confidence in clean energy assets. In the first quarter of 2025, the company posted a 7% YoY (year-over-year) rise in its Funds From Operations (FFO) to a record US$315 million with the help of its diversified, inflation-linked, and contracted global asset base. Despite a net loss of US$197 million in the quarter due partly to acquisition-related expenses, the business continues to generate stable cash flow.
Similarly, Brookfield Renewable’s revenue for the quarter rose 5.9% YoY to US$1.6 billion, while its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped 8.7% to US$625 million. Several factors, including strong hydro generation in Colombia, recently added capacity from acquisitions, and efficiency improvements in distributed energy and storage assets, improved its profitability in the latest quarter.
A TFSA stock to hold through market cycles
In recent months, Brookfield Renewable has finalized the privatization of Neoen and reached a deal to acquire National Grid Renewables, adding thousands of megawatts to its development pipeline. In mid-July, the company also announced a US$3 billion hydroelectric agreement with Alphabet’s Google to deliver clean power across the U.S. over 20 years – one of the largest deals of its kind.
In addition, the renewables giant is also investing up to US$1 billion to boost its stake in Colombia’s Isagen, a hydro asset platform with stable cash flows and long-term contracts. These strategic investments are only possible because of Brookfield Renewable’s strong balance sheet and ample liquidity. As of the latest quarter, the company had over US$4.5 billion in available liquidity.
For TFSA investors, this adds another layer of appeal. You’re not only investing in a company with strong fundamentals and reliable dividends but also one that is actively positioning itself to lead the global clean energy transition.
