A Tax-Free Savings Account (TFSA) enables Canadians to earn tax-free returns on eligible investments, subject to annual contribution limits. For 2025, the CRA (Canadian Revenue Agency) has fixed the contribution room at $7,000, bringing the cumulative limit to $102,000 for individuals who were 18 or older in 2009. However, investors should exercise caution, as selling the stocks at a loss within a TFSA not only erodes capital but also reduces their contribution room.
Against this backdrop and uncertain outlook due to rising geopolitical tensions, investors may consider adding the following three reliable TSX stocks to their TFSA portfolios.
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Dollarama
Dollarama (TSX:DOL) is a Canadian discount retailer with an extensive presence across the country, with approximately 85% of the population having at least one store within 10 kilometres. Through its superior direct-sourcing and buying capabilities as well as efficient logistics, the company has been able to reduce its expenses while offering a wide range of customer products at attractive prices. Therefore, the company experiences healthy same-store sales even in a challenging environment. Also, the Montreal-based retailer expects to increase its store count from 1,665 at the end of the second quarter of fiscal 2025 to 2,200 by the end of fiscal 2034.
Additionally, it recently acquired The Reject Shop, which operates 395 discount stores in Australia. Further, the company owns a 60.1% stake in Dollarcity, which operates 657 stores across Latin America. Dollarcity plans to raise its store count to 1,100 by the end of fiscal 2031, while Dollarama can increase its stake in the company to 70% by the end of 2027 by exercising its option. Considering these growth prospects, I expect the uptrend in Dollarama’s financials to continue, thereby supporting its stock price growth in the coming years.
Enbridge
Enbridge (TSX:ENB) is another reliable TSX stock to have in your TFSA due to its regulated midstream, low-risk utility, and power-purchase agreement-backed renewable energy assets. It earns around 98% of its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) from regulated assets and long-term contracts. Also, around 80% of its adjusted EBITDA is inflation-indexed, thereby shielding its financials from market volatilities.
Supported by these stable financials, the company has delivered an average total shareholders’ return of 12% over the last 20 years. Moreover, the Calgary-based energy company has an impressive track record of paying and raising dividends. It has paid dividends uninteruptedly for 70 years and has also increased its dividend at an annualized rate of 9% since 1995. Its forward dividend yield now stands at 5.65%.
With $50 billion in identified growth opportunities, Enbridge expects to invest $9-$10 billion annually to strengthen and expand its asset base. Amid these growth initiatives, the company expects its adjusted EBITDA to grow at a 5% CAGR (compound annual growth rate) for the rest of this decade, thereby allowing it to maintain its dividend growth.
Fortis
Fortis (TSX:FTS) generates stable, predictable financial results through its regulated utility operations, meeting the electric and natural gas needs of approximately 3.5 million customers. Supported by these stable financials, the company has delivered an average shareholders’ return of 9.7% for the last 20 years. Moreover, it has delivered 51 straight years of dividend growth and presently provides a forward dividend yield of 3.64%.
Fortis has also planned to invest $26 billion over the next five years, starting from 2025. These investments could grow its rate base at a 6.5% CAGR to $53 billion by the end of 2029. Along with these expansions, the increase in customer rates and improved operating efficiencies could support its financial growth in the coming years. Amid these growth initiatives, Fortis’s management expects to raise its dividend by 4-6% annually over the next five years. Considering all these factors, I believe Fortis would be an ideal addition to your TFSA.
