While it is important for Tax-Free Savings Account (TFSA) investors to keep risk in check, avoiding good opportunities could also slow your portfolio growth. A strong TFSA is usually built with companies that combine stability with stable returns. This is one of the key reasons why you may want to focus on Canadian large-cap stocks with strong long-term growth potential. Let me highlight three Canadian stocks that align well with a smart TFSA strategy in 2026.
Royal Bank of Canada stock
Let’s begin with Royal Bank of Canada (TSX:RY), a financial services giant that already has measurable scale and earnings strength. RY stock recently traded around $233 per share, giving it a market capitalization of roughly $326 billion. At this market price, its annual dividend per share translates into a yield of about 2.8%.
Interestingly, Royal Bank closed its fiscal 2025 (ended in October) with net income of $20.4 billion, up 25.4% YoY (year-over-year). This growth came from several core segments as its personal banking net income rose 20%, while wealth management earnings increased 25.3% YoY. Similarly, the largest Canadian bank’s capital markets segment also delivered $5.4 billion in net income for the year, supported by stronger trading and underwriting activity.
Moreover, Royal Bank’s push into U.S. capital markets and ongoing digital banking investments could help fuel long-term growth within a TFSA.
Bank of Montreal stock
Staying within the financial sector, Bank of Montreal (TSX:BMO) could add a different earnings mix to your TFSA while maintaining scale and income consistency. BMO stock currently trades near $191 per share, with a market cap close to $136 billion. At this market price, it offers a 3.5% annualized dividend yield. Notably, the stock has surged by about 33% over the last 12 months.
For its fiscal year ended in October 2025, Bank of Montreal reported higher net income, supported by stable credit quality and contributions from its U.S. banking segment.
In recent years, a key driver of BMO’s financial growth has been the bank’s U.S. expansion strategy, which continues to generate fee income and diversify earnings beyond Canada.
Meanwhile, its ongoing investments in digital banking platforms and risk controls brighten its long-term growth outlook further. Also, these initiatives could protect its margins while supporting loan growth. In short, BMO’s diversified earnings base and strong balance sheet could help it yield strong returns across market cycles.
RioCan REIT stock
In addition to banks, adding some fundamentally strong companies with real assets like RioCan Real Estate Investment Trust (TSX:REI.UN) could improve income consistency inside a TFSA. At the time of writing, it traded at $19.62 per share with a market cap of $5.8 billion. The trust currently has a juicy annualized dividend yield of 5.9% and distributes these payouts every month.
In the latest quarter ended in September 2025, RioCan reported funds from operations of $0.46 per unit, while maintaining strong operating metrics. More importantly, its retail committed occupancy stood at 98.4%, and same-property net operating income increased 4.6% YoY.
Currently, RioCan has $1.1 billion in available liquidity as it continues to focus on capital recycling through asset dispositions and mixed-use properties in major Canadian markets. Beyond these factors, its steady cash flow profile makes RioCan a practical income stock for TFSA investors.
