Got $7,000? Where to Invest Your TFSA Contribution in 2026

Putting $7,000 to work in your 2026 TFSA? Consider BMO, Granite REIT, and VXC for steady income, diversification, and long-term compounding.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published December 19, 2025 9:15 pm EST

| More on: BMOGRT.UNVXC

Key Points

BMO offers Big Six stability, U.S. growth exposure, prudent risk management, and a well-supported dividend
Granite REIT provides high-occupancy industrial properties, strong tenants, conservative debt, and a sustainable monthly payout
VXC gives broad global diversification outside Canada at low cost

When deciding how to use $7,000 of Tax-Free Savings Account (TFSA) contribution room in 2026, it helps to treat that money as long-term capital rather than something you may need soon. For many Canadians, TFSA room is precious because once it is used, it cannot be replaced unless you sell and withdraw later.

That makes it especially important to choose investments you feel confident holding through market downturns without panic. Investors should think about whether they want growth, income, or a blend of both, and how that choice fits with their age, risk tolerance, and other savings. So let’s look at three stocks that complement it.

BMO

Bank of Montreal (TSX: BMO) offers a blend of stability and opportunity that appeals to long-term TFSA investors. As one of Canada’s Big Six banks, it has a deeply entrenched position in personal and commercial banking, wealth management, capital markets, and insurance. What sets BMO apart is its meaningful exposure to the United States, where it operates a large and growing banking franchise. This allows BMO to benefit from economic growth on both sides of the border and helps smooth results when one market slows.

In its most recent earnings, BMO demonstrated steady execution in an environment defined by cautious consumers and businesses. While higher interest rates led to increased credit provisions, revenue remained solid, supported by capital markets activity and wealth management growth. Management continued to emphasize prudent risk management, which is critical for protecting dividends during uncertain periods. The dividend yield sits comfortably at 3.7%, and the payout remains well supported by earnings. Using $7,000 of TFSA room for BMO in 2026 could appeal to investors who want tax-free dividend income today while positioning for long-term upside.

GRT.UN

Granite REIT (TSX: GRT.UN) is a high-quality industrial real estate trust focused on warehouses, logistics hubs, and distribution facilities across North America and Europe. These properties form the backbone of modern supply chains, supporting everything from manufacturing to online shopping. Granite’s tenant base includes large, financially strong companies, and its long lease terms help provide predictable cash flow.

Granite’s recent earnings reinforced its reputation for consistency and balance sheet discipline. Occupancy remains high, rental income is stable, and management has continued to operate with a conservative approach to debt. While rising interest rates pressured real estate investment trust (REIT) valuations broadly, Granite maintained a payout that is supported by cash flow rather than stretched to attract yield seekers. Its monthly distribution is particularly attractive inside a TFSA, where that income can compound without tax drag.

VXC

Finally, Vanguard FTSE Global All Cap ex Canada ETF (TSX: VXC) provides exposure to thousands of companies outside Canada, spanning the United States, developed international markets, and emerging economies. For many Canadians, portfolios naturally become overexposed to domestic banks, energy, and utilities simply because those sectors dominate the TSX. VXC helps offset that concentration by offering access to global technology, healthcare, consumer, and industrial leaders that are underrepresented in the Canadian market.

Recent performance for VXC has been supported by strength in U.S. equities and improving sentiment across global markets, though returns will naturally vary from year to year. The real strength of VXC is not short-term performance, but its ability to capture global economic growth over long periods with minimal effort. Using $7,000 of TFSA room for VXC in 2026 could be an ideal choice for investors who want broad diversification, low maintenance, and the ability to let global growth compound tax-free.

Bottom line

A strong TFSA investment is one that can quietly compound in the background while benefiting from tax-free growth and tax-free income for years or even decades. Right now, here’s what $7,000 could bring in from each of these stocks.