TFSA: 2 TSX Stocks for Your $7,000 Contribution

These TSX stocks have strong fundamentals and solid growth potential, which makes them a compelling investment for TFSA investors.

Key Points
  • The TFSA is a highly attractive investment account for Canadian investors to hold stocks, as all gains inside a TFSA are completely tax-free.
  • Over time, this tax shelter inside a TFSA can significantly boost portfolio value versus a taxable account.
  • These TSX stocks have solid growth prospects and are an attractive investment to strengthen your TFSA portfolio.

For Canadian investors, a Tax-Free Savings Account (TFSA) is one of the most attractive avenues to invest in stocks. Any gains you generate inside the account, whether from capital appreciation, dividends, or interest, are completely tax-free. Over the years, that tax shelter can considerably increase the value of your portfolio compared to investing in a taxable account.

If you have $7,000 available to invest, which is also the TFSA contribution limit for 2026, here are two TSX stocks to consider now.

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.

Source: Getty Images

TSX stock #1: Aritzia

Aritzia (TSX: ATZ) is a no-brainer stock to add to your TFSA. The Canadian fashion retailer consistently delivers solid financial results, driven by strong brand power, loyal customers, product demand, and a rapidly expanding boutique and digital presence.

Notably, Aritzia has delivered double-digit increases in both revenue and earnings since fiscal 2020, with revenue compounding at 23% annually and earnings at 19%. These results reflect the resilience of its business model and solid execution.

Thanks to its solid financials, Aritzia’s shares have outperformed the broader Canadian equity market by a significant margin. It is up 109.7% over the past year and has gained 443.4% in the last five years. While the rally has driven its valuation higher, its solid prospects warrant a premium multiple.

Both Aritzia’s retail and e-commerce channels are contributing meaningfully to growth. Over the past year, Aritzia expanded its store network by about 25% across Canada and the U.S., while online sales have grown at an annualized rate of roughly 33% since 2020. Looking ahead, boutique expansion in the U.S. and new digital initiatives, including an upgraded international platform and a dedicated shopping app, should further enhance customer engagement.

Although tariffs and logistics costs pose near-term challenges, operational improvements and disciplined cost controls position Aritzia to protect margins. With multiple growth levers still in play, the company appears well-positioned to deliver continued long-term value.

TSX stock #2: CES Energy

CES Energy (TSX: CEU) is an attractive TSX stock to strengthen your TFSA portfolio. The company is a leading provider of specialty chemicals used throughout the oil and gas production lifecycle. Its products help producers operate more efficiently while protecting vital infrastructure. Moreover, its offerings are important in pipeline and midstream operations, where they mitigate corrosion, prevent wax buildup, and address processing issues.

CES Energy is well-positioned to deliver significant growth. It is likely to benefit from sustained upstream activity, increasing use of advanced chemical solutions to drive production, and higher service intensity. In addition, the company’s extensive infrastructure, vertically integrated business model, and efficient procurement give it meaningful advantages as demand evolves.

Another big catalyst is CES Energy’s capital-light business model. It helps the company to generate solid free cash flow and reinvest in growth initiatives without placing pressure on the balance sheet. This financial flexibility and its counter-cyclical balance sheet add resilience to its performance during industry downturns.

While global uncertainty and geopolitical risks continue to influence energy markets, CES is relatively insulated. Its U.S.-weighted revenue, integrated North American operations, and reliable supply chain help limit exposure to regional disruptions. Overall, CES appears well-equipped to navigate volatility while delivering consistent operational performance.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aritzia. The Motley Fool recommends CES Energy Solutions. The Motley Fool has a disclosure policy.

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