With the Economy So Uncertain, Don’t Put Just Any Stock Into Your TFSA: These 3 Look OK.

These three reliable Canadian stocks are ideal additions to your TFSA in this uncertain outlook.

Key Points
  • Fortis, Enbridge, and Dollarama are ideal for stabilizing TFSA portfolios, offering dependable returns and growth potential in uncertain market conditions.
  • These companies leverage regulated business models and strategic expansion plans to deliver reliable income and long-term growth opportunities.

After a strong rebound, Canadian equity markets have come under pressure this week, with the S&P/TSX Composite Index slipping 1.1%. Investor sentiment has softened amid rising bond yields – sparked in part by recent comments from the Bank of Japan hinting at potential rate increases – as well as escalating geopolitical tensions, all of which have weighed on equities.

In this uncertain environment, investors should be especially mindful when deploying funds through their Tax-Free Savings Account (TFSA). A decline in stock prices, followed by selling, can not only result in capital losses but also permanently reduce their available contribution room. With that in mind, here are three top Canadian stocks that can help bring greater stability to your TFSA portfolio.

sources of renewable energy

Source: Getty Images

Fortis

Fortis (TSX: FTS) is a solid defensive addition to any TFSA, thanks to its regulated asset base and low-risk transmission and distribution operations. The company owns nine electric and natural gas utilities, serving 3.5 million customers across the United States, Canada, and the Caribbean. Its regulated business model delivers reliable financial performance regardless of broader market conditions, supporting steady stock performance.

Fortis has generated an average total shareholder return of 10.5% over the past decade and has raised its dividend for 52 consecutive years. It currently offers a reasonable dividend yield of 3.5%. The company has been steadily expanding its asset base, investing $4.2 billion in the first three quarters and remaining on track to deploy $5.6 billion for the whole year.

Looking ahead, management plans to invest $28.8 billion over the next five years, supporting a projected 7% annualized increase in its rate base to $57.9 billion by 2030. With this growth pipeline, Fortis expects to raise its dividend by 4–6% annually through 2030, making it an attractive long-term addition to your TFSA.

Enbridge

Another reliable Canadian stock worth considering for your TFSA in today’s uncertain environment is Enbridge (TSX: ENB). The company operates one of North America’s largest pipeline networks, transporting oil and natural gas across the continent. A significant portion of its earnings comes from regulated assets and long-term contracts, while much of its revenue is insulated from commodity price volatility and indexed to inflation.

This business model enables Enbridge to generate reliable financial performance, in turn supporting steady share-price growth. Over the past decade, the company has delivered an average shareholder return of 10.1%. It has also increased its dividend at an impressive annualized rate of 9% over the last 31 years and currently offers an attractive yield of 5.6%.

In addition, the Calgary-based energy infrastructure giant has a robust $35-billion backlog of secured capital projects scheduled to enter service through 2030. With this strong growth pipeline, management expects earnings per share and discounted cash flow per share to rise at a mid-single-digit pace for the remainder of the decade. Reflecting this confidence, Enbridge anticipates returning between $40 billion and $45 billion to shareholders over the next five years.

Dollarama

The final pick is Dollarama (TSX: DOL), a leading discount retailer that has delivered an impressive 21.1% annualized return over the past decade. Its strong direct-sourcing model and efficient logistics enable the company to offer a wide range of consumer goods at compelling price points, attracting steady foot traffic regardless of broader economic conditions. Coupled with a growing store network, these advantages have consistently strengthened Dollarama’s financial performance and supported its share-price momentum.

Looking ahead, the Montreal-based retailer plans to expand its Canadian store base from 1,665 to 2,200 locations and its Australian network from 395 to 700 by fiscal 2034. It also holds a 60.1% stake in Dollarcity, which operates 658 stores across five Latin American countries. Dollarcity aims to grow its footprint to 1,050 stores by fiscal 2031, and Dollarama has the option to increase its ownership stake to 70% by the end of 2027. These expansions should boost Dollarcity’s contribution to Dollarama’s net income in the years ahead.

Given these multiple growth drivers, Dollarama appears well-positioned to sustain its strong share price performance, making it an attractive long-term addition to your TFSA.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Dollarama, Enbridge, and Fortis. The Motley Fool has a disclosure policy.

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