The Best $21,000 TFSA Approach for Canadian Investors

The best approach to building a durable $21,000 TFSA is to hold stocks of companies with staying power.

| More on:
Happy golf player walks the course

Source: Getty Images

Key Points

  • Use a $21,000 TFSA to build a low‑risk, income‑focused core with three stocks—TD (TSX:TD), Rogers (TSX:RCI.B), and Brookfield Renewable (TSX:BEP.UN)—for tax‑free compounding and long‑term growth.
  • Together they pair bank stability (TD), 5G/media upside with steady payouts (Rogers), and scalable renewable cash flow (Brookfield Renewable), each offering meaningful dividend income
  • 5 stocks our experts like better than [Brookfield Renewable] >

The true power of the Tax-Free Savings Account (TFSA) stems from its tax-free growth feature. Given this trademark, $21,000, or three times the $7,000 annual limit in 2025, should be enough to build a durable TFSA investment portfolio. Notably, you only need three stocks to build long-term wealth and secure your financial future.

Building for the future

Since Canada’s banking sector is a bedrock of stability, your TFSA is deficient without a Big Bank. The Toronto Dominion Bank (TSX:TD) is back on investors’ radars and recovering from the money laundering scandal. As of this writing, TD is the top-performing Big Bank stock. At $106.32 per share, the year-to-date gain is 44.2%-plus.

In Q3 fiscal 2025 (three months ending July 31, 2025), earnings reached $3.3 billion versus the $181 million loss in Q3 fiscal 2024. Raymond Chun, TD Group President and CEO, assured, “We are well-positioned to build on this momentum as we compete, grow, and build our bank for the future.”

TD remains a reliable source of passive income. The dividend payment history is 168 years and counting. Current investors partake in the 4% dividend (quarterly payout).

5G resurgence

Rogers Communications (TSX:RCI.B) has regained investors’ trust following the slump of the communications services sector in 2024. Canada’s third-largest telco reported strong financial performance in Q2 2025. Net income during the quarter declined 62% year-over-year to $148 million, while free cash flow rose 39% to a substantial $925 million versus Q2 2024.

On July 2, 2025, Rogers became the majority owner of Maple Leaf Sports & Entertainment (MLSE), with a 75% stake. The sports portfolio includes the Toronto Blue Jays, Rogers Centre, and Sportsnet. Its President and CEO, Tony Staffieri, said the moves to deleverage the balance sheet and invest in world-class sports assets aim to unlock shareholder value. Staffieri added that MLSE is a valuable and appreciating asset.

Performance-wise, the 5G stock is up 16.2%-plus year-to-date. The share price is $49.53, and the corresponding dividend yield is 4%. RCIB’s quarterly payouts have been stable and consistent since 2022.

Scalable renewable platform

Brookfield Renewable Partners (TSX:BEP.UN) is the pre-eminent choice in the clean energy space. The $9.9 billion company operates scalable renewable power platforms and provides decarbonization solutions. Renewables make up over 97% of the global power assets. If you invest today, the share price is $35.03, while the dividend offer is 5.9%.  

The ongoing plan is to continue to actively invest in the critical technologies that support growing energy demand and grid reliability. Brookfield and its institutional partners commit to deploy $2.6 billion across multiple investments. The accelerating development activities are expected to result in 8,000 MW of new renewable capacity by year-end 2025.

According to its CEO, Connor Teskey, the future business outlook remains robust. He said, “Our conviction stems from the exceptionally strong demand for power, which will require significant development of all forms of energy.” Brookfield will focus on the lowest-cost, most mature renewable technologies to be competitive in all regulatory environments.

Low-risk TFSA

A TFSA with TD, Rogers Communications, and Brookfield Renewable as core holdings is not only profitable but low-risk. You can turn your $21,000 TFSA into a cash-generating machine. Any price appreciation is a bonus.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners and Rogers Communications. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

Here’s the Average TFSA Balance at Age 55 in Canada

Turning 55? See how a TFSA and a low‑volatility income ETF like ZPAY can boost tax‑free retirement cash flow while…

Read more »

dividends can compound over time
Dividend Stocks

TD Bank’s Earnings Beat & Dividend Hike: Told You So!

The Toronto-Dominion Bank (TSX:TD) just released its fourth quarter earnings and hiked its dividend by 2.9%.

Read more »

senior couple looks at investing statements
Dividend Stocks

Here’s the Average TFSA Balance at Age 54 in Canada

Holding the iShares S&P/TSX Capped Composite Index Fund (TSX:XIC) in a TFSA can maximize your wealth.

Read more »

Train cars pass over trestle bridge in the mountains
Dividend Stocks

1 Top-Tier TSX Stock Down 18% to Buy and Hold Forever

Down almost 20% from all-time highs, Canadian Pacific Kansas City is a blue-chip TSX stock that offers upside potential in…

Read more »

View of high rise corporate buildings in the financial district of Toronto, Canada
Dividend Stocks

How to Use Your TFSA to Earn $275 in Monthly Tax-Free Income

Discover how True North Commercial REIT’s government‑anchored leases could help turn a TFSA into monthly, tax‑free income even amid a…

Read more »

dividends can compound over time
Dividend Stocks

Got $3,000? 3 Top Canadian Stocks to Buy Right Now

These three Canadian stocks offer attractive buying opportunities.

Read more »

how to save money
Dividend Stocks

Build a Cash-Gushing Passive-Income Portfolio With just $40,000

Building a passive income portfolio can be as simple as investing in dividend ETFs or prudently in individual stocks more…

Read more »

hot air balloon in a blue sky
Dividend Stocks

3 Elite Canadian Dividend Stocks Ready to Soar Higher in 2026

Let's dive into three elite Canadian dividend stocks, and why they make excellent long-term holdings for those seeking stability and…

Read more »