This Simple TFSA Move Could Protect You in 2026

A TFSA isn’t stress-proof, but swapping one hype stock for a dividend-paying compounder can make volatility easier to hold through.

Key Points
  • Swapping a high-hype holding into a profitable dividend payer plus buybacks can reduce panic and improve staying power.
  • Goeasy offers real earnings and a 4.53% yield, but it’s still a lender exposed to the consumer credit cycle.
  • The stock’s upside depends on keeping charge-offs contained while growth resumes under new leadership after 2025 controversy.

A Tax-Free Savings Account (TFSA) feels bulletproof until markets get weird. In 2026, “protection” means more than hiding in cash. You want room to breathe when volatility spikes, and you want your holdings to do useful work while you wait. Focus on diversification, cash generation, and valuation. If a position needs perfect conditions to look good, it can turn a TFSA into a stress test. So, let’s look at one move to consider.

A worker drinks out of a mug in an office.

Source: Getty Images

The move

Here’s one simple move that can protect you this year: swap one high-hype holding for a profitable Canadian compounder that pays you while you wait. A steady dividend plus buybacks can soften drawdowns, and it can give you cash to reinvest when prices dip. When you get paid to hold, you panic less.

This move also forces discipline around position sizing. Pick a single “anchor” stock, set it as a core slice of the TFSA, and stop tinkering with it every time headlines change. Do it once, then leave it alone for a full year unless the fundamentals break. You still keep growth names, but you balance them with something that can grind through a slow economy.

If you want to keep it truly simple, reinvest the income automatically. A dividend-reinvestment plan (DRIP) inside a TFSA turns volatility into more shares without any extra effort. You add on schedule, you collect the dividend, and you let compounding do its quiet thing. Over time, that reinvested cash becomes dry powder without you timing anything.

GSY

goeasy (TSX: GSY) fits the “anchor” idea because it runs a lending business that can stay profitable even when sentiment turns. It lends to Canadians with near-prime to non-prime credit through easyfinancial, and it also offers point-of-sale financing through LendCare. The company earns interest income, manages credit losses, and scales distribution through branches and digital channels.

The past year tested investor confidence. In September 2025, a short-seller alleged hidden losses and questioned credit metrics, and the stock took a hit. Over the year, its market cap also fell sharply, which left it trading more like a “problem” than a compounder. In December 2025, goeasy announced a CEO transition, with Patrick Ens taking over on Jan. 1, 2026, and it renewed its normal course issuer bid soon after.

Earnings showed both the strength and the pressure points. In the third quarter (Q3) of 2025, goeasy reported revenue of $440 million, up 15% year over year, and operating income of $166 million. Diluted earnings per share (EPS) came in at $1.98, while adjusted diluted EPS was $4.12. Credit quality stayed front and centre, with a net charge-off rate of 8.9%, slightly better than the prior year. Looking forward, the bull case rests on controlled growth, not heroic assumptions. If it keeps expanding its loan book while holding losses in check, earnings can rebound, and the market can re-rate it. The bear case stays obvious: a deeper consumer downturn can push delinquencies higher, compress margins, and force tighter underwriting that slows growth.

Bottom line

So, could it be a buy for others? Yes, if you want a TFSA anchor with real earnings power, a meaningful dividend, and a valuation that does not assume perfection. In fact, its dividend sits at 4.53% at writing, so here’s what even $7,000 can bring in.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
GSY$129.0454$5.84$315.36Quarterly$6,978.16

However, it could be a no if you cannot tolerate credit-cycle risk, because even a well-run lender can look ugly in a recession. The simple TFSA move is not “buy goeasy.” It is building an income-plus-compounding cushion, and goeasy is one candidate that can do that job in 2026.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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