Turning a single $7,000 Tax-Free Savings Account (TFSA) contribution into a lasting source of income and growth isn’t about chasing the hottest trade. It’s about finding dependable companies with staying power, steady dividends, and room to grow. Three stocks stand out right now for their ability to compound value while cushioning your portfolio against market swings. So, let’s get into each.
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SGR.UN
Slate Grocery REIT (TSX: SGR.UN) offers stability with a twist. This U.S. grocery-anchored landlord benefits from long leases, strong tenant demand, and rent levels well below market averages, giving it built-in pricing power. Over the last year, the units have delivered positive total returns while maintaining a distribution yield in the high-8% range.
In its most recent quarter, same-property net operating income (NOI) climbed, renewal spreads hit double digits, and occupancy stayed solid at 94%. Debt maturities are minimal through 2026, reducing near-term refinancing risk. The main headwind has been a slightly higher payout ratio and softer leasing volumes versus last year, but its below-market rents and defensive tenant base make it set up for steady cash flow.
CVE
Cenovus Energy (TSX: CVE) brings commodity-driven upside with a disciplined capital return plan. The integrated oil and gas producer has been executing on growth projects like Narrows Lake and Sunrise while hitting record refining utilization rates in Canada. The past year has seen volatility in share price, with energy markets weighing on valuation, but Cenovus has maintained strong free funds flow and used it to boost its dividend by 11% and buy back shares.
First-quarter results showed upstream production near record levels and improved downstream performance, underscoring the benefits of integration. The dividend stock’s yield is around 4%, but the bigger draw is the potential for capital appreciation when oil prices cooperate. The key risk is exposure to commodity cycles, though its low-cost assets and integrated model provide some resilience.
GWO
Great-West Lifeco (TSX: GWO) rounds out the trio with financial sector strength and a growing dividend. The insurer and asset manager has delivered steady share price gains over the last year, supported by record base earnings and robust returns on equity in the high-teens. Recent results showed double-digit base earnings growth across its wealth and group benefits businesses, a LICAT ratio of 132%, and an additional $500 million share buyback planned for 2025.
The 4.6% dividend yield is well covered, and the dividend stock’s global diversification helps buffer against regional market swings. While transformation charges have weighed on net earnings, the underlying growth in client assets and fee-based businesses points to a strong long-term trajectory.
Foolish takeaway
Put together, a $7,000 TFSA allocation split among these three can provide a blend of high current income, growth potential, and sector diversification. Slate Grocery REIT offers consistent cash flow from essential retail, Cenovus delivers cyclical upside with disciplined capital returns, and Great-West Lifeco provides financial stability and compounding through buybacks and dividend growth.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| SGR.UN | $14.08 | 165 | $1.20 | $198.00 | Monthly | $2,323.20 |
| CVE | $20.35 | 114 | $0.80 | $91.20 | Quarterly | $2,319.90 |
| GWO | $53.52 | 43 | $2.44 | $104.92 | Quarterly | $2,300.36 |
Together, these can add up to around $394 in annual income! The combination could steadily build wealth over time, letting you reinvest distributions and ride both income and growth for years to come.
