How I’d Invest My Entire TFSA Contribution This Year in Just 3 Dividend Stocks

With so much noise in the markets right now from rising interest rates, sticky inflation, and a choppy economy, it’s tempting to sit on the sidelines. But for long-term investors, moments like these are when real wealth gets built. If I had $7,000 to invest in my Tax-Free Savings Account (TFSA) today, I wouldn’t split it between a dozen names. I’d go all-in on just three dividend-paying stocks that offer stability, growth, and income. Those are Wheaton Precious Metals (TSX: WPM), Manulife Financial (TSX: MFC), and Granite REIT (TSX: GRT.UN).

WPM

Let’s start with Wheaton Precious Metals. This is a streaming company, not a traditional miner, which means it locks in lower-risk agreements with miners to receive a portion of their production. This model has once again proven its worth. In Q1 2025, Wheaton delivered record revenue of $470 million and net earnings of $254 million. Operating cash flow jumped 64% to $361 million, with margins increasing at a faster rate than gold prices. The dividend stock’s strong results weren’t a fluke. It’s producing assets are in the lowest half of the industry’s cost curve, meaning it can withstand price fluctuations better than most.

Wheaton also boasts a fortress balance sheet with $1.1 billion in cash and zero debt. Its dividend sits at $0.90, which may not sound huge, but it’s stable and backed by robust free cash flow. And with multiple new projects like Blackwater and Mineral Park ramping up production this year, Wheaton is positioned for more growth, even if commodity markets get rocky. In short, it’s a smart hedge with upside and a dividend to boot.

MFC

Next up is Manulife Financial, the Canadian insurance and wealth management giant that continues to quietly outperform expectations. In the first quarter of 2025, Manulife reported core earnings of $1.8 billion and core EPS of $0.99, up 3% from last year. While net income was down due to provisions tied to the California wildfires, that’s a short-term blip. What really matters is the long-term picture, and it looks strong.

Manulife’s insurance business saw a 37% jump in annual premium equivalent (APE) sales, with Asia delivering a whopping 50% year-over-year increase. Its global wealth and asset management arm also reported solid growth, with $50.3 billion in gross flows and a 290 basis point rise in core earnings before interest, taxes, depreciation and amortization (EBITDA) margins. Better yet, it has strong financial leverage of just 23.9%, well below target. Add in a growing dividend of $1.76 annually and a cheap valuation, and Manulife looks like a rare mix of income and value.

GRT

Lastly, I’d put the rest of my TFSA contribution into Granite REIT. While real estate isn’t exactly the hottest sector right now, that’s what makes Granite such a compelling opportunity. It owns 138 industrial properties across North America and Europe, with a 94.8% occupancy rate and an average lease term of 5.6 years. That kind of stability doesn’t go out of style.

Granite’s Q1 2025 results were solid: revenue rose to $154.7 million, and funds from operations (FFO) hit $91 million, up from $82.4 million the year before. AFFO per unit was $1.41, with a comfortable 60% payout ratio. Even more encouraging, it achieved a 10% average rental spread on renewed leases – proof that demand remains strong. The company is buying back shares and expects FFO per unit to grow 5% to 8% this year. With a current distribution yield of around 6.4% and monthly payouts, Granite adds reliable income and real asset exposure to the mix.

Bottom line

So, if I had $7,000 to invest in my TFSA today, here’s how I’d break it down: $2,333 into Wheaton for its commodity upside and cash flow strength, $2,333 into Manulife for global financial exposure and a healthy dividend, and $2,333 into Granite REIT for real estate stability and monthly income.

Three different sectors, three dependable dividend stocks, one simple plan to build wealth and income over the long haul. Taken together, they total $216 in annual dividend income!