Being a successful stock market investor doesn’t mean having millions to throw into the market blindly and getting lucky if something sticks. With a disciplined approach and well-thought-out decisions, even small but consistent investments can help you create substantial wealth in the long run. Using the contribution room available in a Tax-Free Savings Account (TFSA) to hold the right investments, you can enjoy the returns without incurring taxes.
Today, we will take a look at two top Canadian stocks trading for lower than $20 that offer the kind of growth potential that can help you maximize the potential of a TFSA as an investment vehicle for your financial goals.
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Whitecap Resources
Whitecap Resources Ltd. (TSX: WCP) is a compelling investment to consider for a TFSA, especially if you’re looking for stocks trading under $20. The $16.5 billion market-cap company is primarily an oil and gas producer based in Western Canada that has invested intelligently over the years. The company’s recent merger with Veren, completed in May 2025, has improved its balance sheet and financial flexibility.
The energy producer enjoys a solid financial position, with its third quarter ending with approximately $1.6 billion in liquidity and a healthy net debt-to-annualized funds flow ratio of 1. The company plans to spend up to $2.1 billion this year to increase production capacity. As of this writing, Whitecap Resources stock trades for $13.59 per share and pays investors $0.0608 per share each month, translating to a 5.4% annualized dividend yield that you can lock into your portfolio today.
Lightspeed Commerce
Lightspeed Commerce Inc. (TSX: LSPD) is not a dividend-paying stock, but offers growth through potentially substantial capital gains to investors. The $1.8 billion market-cap tech stock is a point-of-sale and payments processing platform that is powering businesses worldwide. The underlying business has become profitable and keeps performing better and better each quarter.
Lightspeed has been quick to leverage artificial intelligence (AI) and integrate the technology to provide the kind of features that benefit merchants using its platform, in turn, benefiting the company and its investors. Q3 for fiscal 2026 saw Lightspeed report 11% year-over-year growth in total revenue, and a 15% uptick in its gross profit. Its margins increased to 43%, painting a pretty picture for investors bullish on the tech sector.
As of this writing, Lightspeed Commerce stock trades for $12.81 per share, and it looks too well-priced to ignore, sitting at a 35% discount from its 52-week high.
Foolish takeaway
The TFSA is an excellent tool that investors can use to achieve their long-term financial goals much faster by taking advantage of the power of tax-free compounding. Building a portfolio of high-quality stocks and holding it in a TFSA can help you see the returns from your investments held in the account grow without incurring taxes on capital gains, interest, or dividends.
Diversifying such a portfolio is crucial to minimizing the risk to your investment capital. Whitecap Resources stock and Lightspeed Commerce stock can be excellent foundational holdings for a TFSA portfolio to inject some growth into your tax-free returns.
