If you want to build real wealth inside a Tax-Free Savings Account (TFSA), dividend-paying growth stocks are one of the best tools available. Every dollar you earn in dividends, and every dollar your shares gain in value comes back to you completely tax-free.
That means no capital gains tax when you sell and no tax on the income you collect. The TFSA essentially lets your money compound without the government taking a cut.
The key is finding a stock that offers both a reliable payout and a credible path to long-term growth. Savaria Corporation (TSX: SIS) fits that description. Let’s see why.
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Why Savaria should be part of your TFSA portfolio
Savaria has been helping people move freely since 1979. Headquartered in Laval, Canada, the company designs, manufactures, and installs accessibility solutions for the elderly and physically challenged, including home and commercial elevators, stairlifts, platform lifts, and wheelchair-accessible vehicles.
It also operates a Patient Care segment, which supplies ceiling lifts, medical beds, floor lifts, and pressure management products to hospitals, long-term care facilities, and home care settings.
The business case is straightforward. Canada, the United States, and Europe are all aging rapidly. More people than ever are looking to stay in their homes longer, and urban density is pushing more townhouse and multi-floor residential development. Both trends are tailwinds for elevator and lift demand.
“Even if you have a townhouse of four floors, the price of a townhouse in Toronto is very often over $1 million,” CEO Sébastien Bourassa said on the company’s Q3 2025 earnings call. “If you can put [in] a home elevator that might be cheaper than your kitchen, that helps you resell your house at a better price.”
Bourassa’s point matters for investors, too. Penetration of home elevators remains low, and the market has room to grow.
A focus on margin expansion
Here’s what makes Savaria interesting right now, beyond just the dividend.
The company has spent the last two years executing a sweeping internal transformation called Savaria One. The results have been striking. In the third quarter of 2025, the TSX dividend stock posted an adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) margin of 21.2%, its highest ever.
To put that in context: EBITDA is a measure of operating profitability. At 21.2%, Savaria is generating more cash from each dollar of revenue than at any point in its history.
- Gross margins also hit a record 39.2% in Q3, up 220 basis points year-over-year.
- Revenue came in at $224.8 million for the quarter, a 5.2% increase from the same period in 2024.
- Net earnings hit $19.5 million in Q3, up from $11.2 million a year earlier.
- Earnings per share came in at $0.27, a 69% improvement over last year, according to the company’s earnings call.
- Free cash flow after debt and dividends was $20.6 million for the quarter, up 51.5% year-over-year.
Savaria used that cash flow to pay down $11.5 million in debt during the quarter. Its net debt-to-EBITDA ratio is now a very comfortable 1.2, with $290 million available for future investments or acquisitions.
CFO Steve Reitknecht noted on the call that consulting costs tied to the Savaria One program will end after Q4 of 2025, which will meaningfully boost cash flow starting in early 2026.
A growing dividend payout
Savaria pays a monthly dividend. At current levels, the annualized yield sits at approximately 2.2%. For TFSA investors, that income lands completely tax-free.
With Savaria One winding down and a new five-year growth strategy set to be unveiled at an Investor Day in April 2026, the company is pivoting from margin improvement to top-line expansion. Management has been explicit about the shift.
Analysts forecast free cash flow to increase from $92.3 million in 2025 to $133.2 million in 2028, which should support future dividend hikes.
The building blocks are in place. For TFSA investors looking for a monthly payout from a company with genuine growth momentum, Savaria deserves a close look.
