All investors seek a portfolio that can provide ample income in retirement. One of the ways to meet that goal is to establish a Tax-Free Savings Account (TFSA) millionaire strategy.
Incredibly, that’s easier than you may think, and here’s how to get started.
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Start with the basics
Investing in a TFSA means that any income earned within that account is tax-free. This can be a huge benefit, particularly for investors with longer timelines.
Adding to the appeal of the TFSA is the fact that the accounts have ample contribution room. For 2025, the limit is $7000, and you can roll over unused contributions from prior years.
So then, what are the stocks to include in that TFSA millionaire strategy?
Start with a defensive back line
One of the first stocks to consider in any TFSA millionaire strategy is a defensive stock that generates stable revenue, offers growth and earns a healthy income.
That stock is Fortis (TSX:FTS), which is one of the largest utility stocks on the continent. The company boasts 10 operating regions in Canada, the U.S. and the Caribbean.
Fortis’s facilities are bound by the long-term, regulated contracts that span decades. This means that as long as Fortis provides utility service, it earns a predictable and stable revenue stream.
That revenue stream allows Fortis to invest in growth and pay its handsome quarterly dividend. As of the time of writing, that dividend works out to 3.67% making it a great option for any TFSA millionaire strategy for the long term.
It’s also worth noting that Fortis has provided annual increases to that dividend for over five consecutive decades without fail. That fact alone makes Fortis a super buy-and-forget option in any TFSA millionaire strategy.
Throw a big bank into the mix
No list of investments as part of its TFSA millionaire strategy would be complete without including one of Canada’s big banks. The big banks offer predictable revenue streams, offer strong growth potential, and pay some of the best dividends on the market.
Investors considering one of the big banks to invest in should look closely at Bank of Nova Scotia (TSX:BNS). Scotiabank isn’t the largest of the big banks, but it is regarded as Canada’s most international bank.
That international presence provides ample growth for the bank, which, when coupled with its strong domestic segments, translates into strong revenue and growth appeal for any TFSA millionaire strategy.
In fact, over the trailing 12-month period, Scotiabank’s stock price has surged 22%.
Turning to income, Scotiabank really impresses. The bank has been paying out dividends for nearly two centuries without fail. The bank also provides annual upticks to that dividend.
As of the time of writing, Scotiabank boasts a juicy 5.69% yield.
Power up your portfolio
A third option for investors seeking a TFSA millionaire strategy to consider is Enbridge (TSX:ENB). Enbridge is an energy infrastructure behemoth that offers growing renewable energy segments in addition to its natural gas utility and well-known pipeline business.
The renewable energy business consists of over 35 facilities located in Europe and North America. Like a utility business, these facilities generate reliable and stable revenue backed by long-term, regulated contracts.
That same model applies to Enbridge’s natural gas utility. Additionally, thanks to a series of acquisitions completed in recent years, that natural gas business is now the largest natural gas utility in North America by customer count.
Collectively, those segments provide a reliable and recurring revenue stream that allows the company to pay out a very appetizing dividend while investing in long-term growth initiatives.
Speaking of dividends, Enbridge offers a very impressive 6.08% yield. And similar to the other companies on this TFSA millionaire strategy list, the company has provided annual increases to its dividend. Enbridge has provided that annual increase for three decades without fail.
What’s your TFSA millionaire strategy?
The stocks mentioned above can provide reliable revenue, strong growth and juicy dividends, but they are not without risk.
That’s why the importance of diversifying cannot be dismissed.
In my opinion, one or all of the above should be core holdings as part of any larger, well-diversified portfolio.
Buy them, hold them, and watch your portfolio (and future income) grow.
