A Smart TFSA Portfolio for 2026: 3 Stocks I’d Buy Now

Three TFSA-friendly TSX stocks could give you a mix of steady cash flow, downside protection, and reasonable value in 2026.

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Key Points
  • Brookfield Renewable offers contract-backed power cash flow, boosted by a major Google hydro deal and a higher distribution.
  • Kinross can act as a portfolio shock absorber, with strong cash generation and guidance coming on Feb. 18.
  • OpenText adds discounted software cash flow, with solid margins, strong free cash flow, and a rare tech dividend.

A smart Tax-Free Savings Account (TFSA) portfolio starts with one boring question: what can you actually hold through a rough year? Your TFSA rewards patience since every dollar of growth stays yours, but that same tax-free perk can tempt you to chase the hottest chart. In 2026, I would focus on three traits: durable cash flow, clear catalysts you can track quarter to quarter, and a valuation that does not assume perfection. So, let’s look at three.

pig shows concept of sustainable investing

Source: Getty Images

BEP

Brookfield Renewable Partners (TSX: BEP.UN) earns a spot as it sells electricity the way landlords sell rent: through long contracts and predictable payments. It runs hydro, wind, solar, and storage across multiple regions, and it often wins when power demand rises and the grid needs stability. Over the last year, the story has shifted from “renewables sentiment” back to “hard dollars,” thanks to deals that tie its assets to real demand from hyperscalers.

The biggest headline came from a hydro framework agreement with Google that can deliver up to 3,000 megawatts (MW), with more than US$3 billion of contracts signed for an initial 670 MW tranche. That kind of contract helps investors stop worrying about daily power prices and start focusing on long-term cash flow. On the numbers, Brookfield Renewable reported 2025 funds from operations of US$1.33 billion, or US$2.01 per unit, up 10% per unit year over year, and it announced a 5% distribution increase. That distribution now sits at 5.2% at writing.

K

Kinross Gold (TSX: K) looks like the “shock absorber” in this trio, even though gold stocks can still swing. It produces gold from a set of large mines, and it tends to benefit when investors get nervous about growth, inflation, or geopolitics. Over the last year, the gold backdrop has stayed supportive, and Kinross has leaned into buybacks and project updates that signal confidence in its pipeline. It also has a near-term catalyst on the calendar, since it plans to release 2025 fourth-quarter (Q4) and full-year results with 2026 guidance on Feb. 18, 2026.

The recent earnings snapshot shows why the market has taken it seriously. In Q3 2025, Kinross delivered revenue of about US$1.80 billion and reported earnings per share of US$0.48, while it posted adjusted earnings of US$0.44 per share. It also generated attributable free cash flow of US$686.7 million and adjusted operating cash flow of US$845.2 million. That’s the kind of cash production that can support dividends, buybacks, and growth projects at the same time.

OTEX

OpenText (TSX: OTEX) rounds out the TFSA mix with something many portfolios lack: enterprise software cash flow that doesn’t depend on commodity prices. It sells information management, security, and cloud tools to large organizations, and it has pushed hard into artificial intelligence-ready workflows. Companies need governance, compliance, and content control. Over the last year, investors have watched it work through a leadership transition and a tougher spending environment, while it kept producing steady cash.

The latest quarter gives you a clean, numbers-first view. In fiscal 2026, Q2 ended Dec. 31, 2025, OpenText reported total revenue of US$1.327 billion, with cloud revenue of US$478 million, up 3.4% year over year. It posted adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$491 million, which worked out to a 37% margin, and generated US$279 million in free cash flow. For valuation, it trades at 12.65 times earnings, which can look reasonable if it keeps defending margins and stabilizing revenue. Plus, it’s one of the very few tech stocks offering a dividend yield at 4.8%.

Bottom line

This trio could be a buy for others because it spreads your TFSA across three different return engines. And right now, here’s what you could earn with $7,000 in each from dividends alone.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
BEP.UN$41.14170$2.12$360.40Quarterly$6,993.80
OTEX$33.08211$1.49$314.39Quarterly$6,979.88
K$44.12158$0.19$30.02Quarterly$6,970.96

If you want a simple TFSA move for 2026, you could do worse than combining infrastructure-like cash flow, a gold hedge, and a cash-generating software name, then letting time do the heavy lifting.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Alphabet and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

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