If you’re planning to invest this year’s $7,000 Tax-Free Savings Account (TFSA) contribution, choosing the right stocks can make a meaningful difference over the long term. Ideally, you want companies that combine steady income, durable businesses, and reasonable valuations.
Three Canadian stocks that fit this description today are BCE (TSX:BCE), Loblaw (TSX:L), and Manulife Financial (TSX:MFC). Together, they offer exposure to telecommunications, consumer staples, and financial services — three sectors known for stability and consistent earnings. For TFSA investors looking to grow wealth tax-free, these companies provide a nice blend of dividend income and long-term growth potential.
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BCE: A high-yield telecom recovering from its reset
Canadian telecom stocks have been under pressure in recent years, and BCE has been no exception. However, the company’s decision to cut its dividend by roughly half in May 2025 appears to have stabilized investor confidence.
Since the dividend reset, BCE shares have recovered more than 20%, suggesting that the market has largely adjusted to the company’s new payout level. At around $35 per share at the time of writing, the stock still offers a competitive dividend yield of nearly 5%, which remains attractive for income-focused TFSA investors.
Importantly, the dividend is now better supported by the company’s financials. BCE’s payout ratio sits at about 73% of earnings and 66% of free cash flow, making the distribution more sustainable than before.
Looking ahead, analysts believe the stock is fairly valued today. That means future returns will likely track the company’s underlying business performance. If BCE can grow earnings per share by roughly 4% annually, investors could see total long-term returns of approximately 9% per year when dividends are included. For a stable telecom operator, that’s a solid outlook.
Loblaw: A defensive leader in essential retail
When it comes to reliable businesses, few Canadian companies are as resilient as Loblaw. As the largest food and pharmacy retailer in Canada, the company operates about 2,500 locations and generated roughly $64 billion in annual revenue in 2025.
Loblaw’s network includes widely recognized banners such as Shoppers Drug Mart/Pharmaprix, No Frills, Maxi, Real Canadian Superstore, Loblaws, Zehrs, Provigo, Fortinos, and Your Independent Grocer. These brands provide essential goods that Canadians purchase regardless of economic conditions, making the company’s business model highly defensive.
The company’s recent financial performance highlights this strength. Last year, Loblaw’s revenue increased 6.3%, while adjusted earnings per share rose 13.6% — an impressive pace for a mature retailer.
At under $62 per share, the stock trades about 10% below the analyst consensus price target, suggesting modest upside potential. While the dividend yield is relatively small at roughly 0.9%, Loblaw has increased its dividend for more than a decade, and future dividend growth should continue to track its expanding earnings.
For TFSA investors seeking stable growth from a dominant Canadian company, Loblaw remains an attractive option.
Manulife: Dividend growth with global expansion
Manulife is another good candidate for a TFSA investment. The financial services giant provides insurance, wealth management, and asset management solutions across Canada, the United States, and fast-growing Asian markets.
Recently, the stock experienced a pullback, pushing its dividend yield to nearly 4%. For long-term investors, this may present an appealing entry point.
Manulife has increased its dividend for more than a decade, delivering a 10-year dividend-growth rate of roughly 10% annually. Analysts expect earnings to grow 8% to 10% per year, which could support continued dividend increases at a similar pace.
At under $46 per share, the analyst consensus price target suggests the stock trades at a discount of more than 16%, implying near-term upside potential of close to 20%.
Investor takeaway
With a $7,000 TFSA contribution, investors can build a strong foundation by focusing on quality Canadian companies that generate dependable income and steady growth.
BCE offers an attractive yield following its dividend reset, Loblaw provides defensive stability in essential retail, and Manulife delivers a combination of dividend growth and global expansion. Together, these three stocks create a balanced TFSA portfolio with exposure to multiple resilient sectors.
For investors looking to maximize their tax-free investment growth, these Canadian stocks could be close to a perfect match.
