2 Canadian Stocks to Buy for Your $7,000 TFSA Contribution for 2026

Dollarama (TSX:DOL) and another value stock worth buying in a TFSA today.

Key Points
  • With markets choppy and TFSA investors hunting for value, two names to watch are Dollarama for “trade-down” demand and Sprott as a leveraged play on precious-metals ETF inflows.
  • Dollarama’s business looks resilient but the stock is pricey (~40x trailing P/E), while Sprott has strong commodity tailwinds after a huge run and may still merit a premium for long-term holders.

It’s time to think about potential value opportunities that might be a great fit for your TFSA portfolio in this new year. Undoubtedly, the broad market has been rather mixed, with fears about Greenland, muted valuations, and tariff threats causing huge day-to-day fluctuations.

It’s hard to know if a correction is in the works or if the dips represent more of a chance to get a 1–5% discount on one’s favourite stocks. Either way, this piece will look at two TFSA-worthy stocks worth considering if you’re looking to put some new money to work.

A woman shops in a grocery store while pushing a stroller with a child

Source: Getty Images

Dollarama

According to a recent survey conducted by TD Bank, close to two-thirds of Canadians plan to reduce their spending in 2026. Just how many of the survey respondents are not going to follow through on their financial New Year’s resolutions come February?

As always, only time will tell, but I do think the survey shines a light on the appetite for good deals. And when it comes to deals, it’s tough to top Dollarama (TSX: DOL), a place to shop at if you have a strict budget and are looking to get some of the most competitive prices out there.

If Canadian consumers do spend less in 2026, I think DOL stock could continue to gain, even though its higher multiple might hold it back a bit if some look to trade up to pricier retailers. Even if incomes rise, I still think it makes little sense to stop shopping at Dollarama. At the end of the day, good deals are something desirable regardless of income levels, and that could mean more comparable-store sales growth through 2026 and beyond.

Also, just because one has a good income today doesn’t mean it’s a good idea to splurge, especially since the rise of AI could have a devastating impact on employment. Either way, saving and chasing value seems to be the way to go, and if Dollarama can keep its shelves stocked with bargains, I do see foot traffic continuing to inch higher. Personally, I think Canadians are going to spend less, and a store like Dollarama is going to help them stick with their tighter budgets.

Though Dollarama’s goods might offer deep value, the shares themselves are incredibly expensive at more than 40 times trailing price-to-earnings (P/E). Given this, I’d be a buyer into weakness, if possible, rather than loading up the shopping cart in one go!

Sprott

Sprott (TSX: SII) is a lesser-known company with a $4.5 billion market cap. What put the firm on the radar of investors was its parabolic past-year rally, which sent shares blasting off more than 180%. Undoubtedly, if you invest in precious metals by way of a physical ETF, you might already know the brand. It’s a powerful one that could gain even more speed as the gold and silver boom continues.

Indeed, 2026 momentum has been off the charts, and that has benefited the firm behind the slate of ETFs in a big way. While Sprott is an interesting and less-obvious way to play the gold and silver rush, I do think it’s an underrated one with a durable 1.3% dividend yield.

If the “debasement trade” picks up, I expect capital inflows to gold and silver ETFs to continue, perhaps for years to come. As such, I view Sprott as a fantastic name to stash away. Also, it’s not just about gold and silver. Increased investor interest in uranium and other commodities might also be a boon for the firm.

All considered, Sprott is a wonderful business that’s facing immense tailwinds. And that makes it worth a premium price.

Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends Dollarama. The Motley Fool has a disclosure policy.

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