2025 was at times difficult, but it was mostly an amazing year to invest in the stock market in Canada. The S&P/TSX Composite Index delivered one of its best performances of all time. The Canadian stock market’s benchmark index hit new all-time highs throughout most of the year. It is rare for the Canadian stock market to outpace its US counterpart, but that actually happened in 2025.
Labour market data has been encouraging, and solid corporate earnings reports across the board boosted Canada’s equity securities market to deliver a stellar performance. As we inch closer to 2026, the new contribution room for the Tax-Free Savings Account (TFSA) will be available soon. If you’re searching for additions you can make to your self-directed TFSA portfolio, take a closer look at these two stocks.
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Shopify
Shopify (TSX:SHOP) is the $290.21 billion market-cap TSX tech stock that has been in the limelight for a few years now. It has become one of the most successful tech stocks to come out of Canada. The massive e-commerce-enabling company provides a complete platform to merchants of all sizes. Through its platform, sellers can set up an online process with everything they will need, from shipping services to fulfillment and payment.
As of this writing, Shopify stock trades for $223.02 per share. Year to date, the stock is up by 41.27%, as the company continues cementing itself as a major e-commerce player worldwide. Right now, around a tenth of all online shopping in the U.S. runs through merchants using Shopify. With the holiday season further boosting online shopping, it might be the right time to buy its shares before prices climb even higher.
Royal Bank of Canada
Royal Bank of Canada (TSX:RY) has long been a staple in most stock market investor portfolios in Canada, self-directed or otherwise. It is one of the most dependable stocks trading on the TSX, beating its closest peers in the Big Five Canadian banks. The financial institution has also claimed the title for having the highest customer satisfaction in Canadian retail banks for six years running.
The bank’s wide economic moat, diversified revenue streams, and the excellence of its management make it a particularly resilient stock. As of this writing, Royal Bank of Canada stock trades for $227.86 per share and pays investors $1.64 per share each quarter, translating to a 2.88% dividend yield. It might be the right time to invest in its shares before it climbs higher on the stock market
Foolish takeaway
It isn’t every year you get to see Canada beat America on the stock market. Yet, 2025 saw the S&P/TSX Composite Index beat even the tech-heavy Nasdaq Composite this year. The strength in the Canadian stock market seems sustainable, and the government’s plan to inject around $1 trillion into public and private investments in the next five years spells great news for investors in 2026 and beyond. It might be the right time to shore up on solid bets among blue-chip stocks. To this end, Shopify stock and Royal Bank of Canada stock can be good investments to add to your TFSA.
