It’s very comforting when stock investing feels simple rather than stressful. A Tax-Free Savings Account (TFSA) allows Canadians to focus on long-term progress instead of short-term tax consequences. That freedom is valuable, especially when every dollar of return stays in your pocket.
With $5,000 to invest, your goal should be to focus on consistency rather than perfection. Strong Canadian companies with resilient business models often provide a balance of income and growth. While market swings will always happen, quality stocks tend to recover and keep moving higher over time. And by using the TFSA wisely, investors can turn ordinary savings into something more powerful in the long run.
In this article, I’ll spotlight two of the best dividend-paying stocks for TFSA investors offering solid fundamentals and strong long-term opportunities.
Source: Getty Images
Nutrien stock
My first stock pick, Nutrien (TSX: NTR), reflects how agriculture-tied businesses can support steady TFSA growth. This Saskatoon-headquartered company operates a global agricultural inputs business that supports farmers through crop nutrients, retail services, and fertilizer production.
After rallying more than 24% over the last year, NTR stock is currently trading around $85.16 per share with a market cap of about $41.1 billion. It also offers a quarterly dividend with an annualized yield of roughly 3.6%, making it attractive for income-focused TFSA investors.
Its recent rally has mainly been backed by improving fertilizer pricing and Nutrien’s strong operational execution across segments. In the third quarter, the company’s revenue rose 13% YoY (year-over-year) to US$5.7 billion. Similarly, its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed more than 41% YoY to US$1.4 billion with the help of higher fertilizer sales volumes and stronger retail margins. Nutrien’s focus on cost discipline and operational reliability also supported profitability, even as sequential results eased from seasonal peaks.
Over the long term, Nutrien is planning to simplify its portfolio and strengthen cash generation. Recently, the company initiated a review of strategic alternatives for its Phosphate business and completed the sale of its Profertil stake for about US$600 million. These moves are likely to help the company reduce debt, buy back shares, and focus on targeted growth investments.
With expectations for healthy crop input demand and rising global potash shipments in 2026, NTR remains one of the best stocks for TFSA investors seeking income and durable growth.
Keyera stock
Keyera (TSX: KEY) could be another great Canadian stock TFSA investors can consider for the long term. This Calgary-based integrated firm operates a fee-based energy infrastructure business that focuses on natural gas processing, liquids infrastructure, and condensate systems across Canada. The company pays a stable dividend and is widely known for its predictable cash flows.
After climbing 7% over the last 30 days, KEY stock currently trades at $44.14 per share, with a market cap of $12.4 billion. At this market price, it offers a 4.9% annualized dividend yield.
In the latest quarter (ended in September), Keyera’s distributable cash flow came in at $181 million, supporting a quarterly dividend of $0.54 per share. Meanwhile, its payout ratio remained reasonable, highlighting the sustainability of its dividend. The company also ended the quarter with a net debt-to-adjusted EBITDA of 1.7 times, well below its long-term target range.
Moreover, Keyera continues advancing major projects such as KFS Frac II, KFS Frac III, and KAPS Zone 4, all backed by long-term take-or-pay contracts. With visible growth and a disciplined capital plan, this dividend player fits well as one of the best stocks for TFSA investors seeking stable income and long-term upside.
