The Best $10,000 TFSA Approach for Canadian Investors

Learn the best strategies for your TFSA as markets shift. Discover stocks with strong fundamentals for investing success.

Key Points
  • Canadian investors can leverage a TFSA to invest in fundamentally strong non-energy stocks like Bombardier, Celestica, Shopify, and Lundin Gold, targeting both long-term growth potentials fueled by secular trends and short-term opportunities driven by market corrections.
  • This diversified approach allows for capitalizing on varying market dynamics: Bombardier and Celestica stand to gain from strategic investments and debt reductions.
  • Shopify and Lundin Gold offer cyclical opportunities, promising growth amid economic uncertainties and market volatility.

The current geopolitical climate is impacting global markets, with funds predominantly flowing into energy stocks while other fundamentally strong stocks are experiencing declines. For Canadian investors, this presents a unique opportunity to adopt a non-energy approach to their Tax-Free Savings Account (TFSA) investments, focusing on stocks poised for long-term growth.

senior couple looks at investing statements

Source: Getty Images

The optimal TFSA strategy for Canadian investors

You can either chase the market or go contrarian and stick to the fundamentals of low debt, steady revenue growth, and high profits. Every company is affected by the trade wars and rising energy prices, but only those with strong margins can deliver growth even in tense markets. You can invest $2,500 in each of the four stocks below to grow your money in the short and medium term.

Long-term growth strategy for your TFSA

Bombardier

Bombardier (TSX: BBD.B) stock saw a sharp correction of 12% in March, even after reporting better-than-expected 2025 earnings in February 2026. Behind the dip was the uncertainty around the renewal of the U.S.-Mexico-Canada Agreement (USMCA) on July 1. If agreed, the accord will remain in force for 16 years or else face annual reviews till 2036 expiration.

US President Donald Trump is already pressuring Canada on a few areas, like approving certain Gulfstream jets, or the US will levy a 50% tariff on aircraft. Considering the unpredictability of his decisions, companies that benefited from USMCA remain cautious. That explains Bombardier’s dip.

The business jet maker is ready to withstand the crisis with a strong balance sheet. It has reduced its net debt to 1.9 times its adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). And it is reducing its net debt further by repaying debt due in 2028. Bombardier is seeing a strong order flow from defence and other segments. It expects its revenue and adjusted EBITDA to grow by 4–5% in 2026 after growing 10 and 15% in 2025.

Now is the time to buy this stock as the management has several ways to boost earnings, increase maintenance agreements, look for more defence orders, and reduce debt. So far, it has not announced share buybacks or dividends, but it has not ruled them out either. Its long-term secular growth trend remains strong, and its supply chain is undisturbed.

Celestica stock

Celestica (TSX: CLS) stock has dipped 20% since its January peak as the Venezuela oil crisis and Iran war affect natural gas prices. Natural gas-fired power plants power most artificial intelligence (AI) data centres. While geopolitical tensions pulled down stock prices, the AI secular trend remains strong. Celestica’s stock rose on the back of strong demand for the Hardware Platform Solutions (HPS) division that manufactures high-speed data interconnects, storage, compute, and networking products for AI and hyperscale data centre infrastructure.

Celestica is investing US$1 billion to expand and build new capacity in Texas, Mexico, Japan, and Taiwan to find a way around tariffs. The company has been reporting better-than-expected earnings despite revising guidance upwards. It has revised its 2026 revenue guidance to US$17 billion from the previous US$16 billion. It has reduced its leverage ratio to 0.7 times from 1 times in 2024.

Although the valuations are high, the high revenue growth is supporting the rally, making it a stock to buy at the dip.

Short-term growth approach for your TFSA

Shopify (TSX: SHOP) and Lundin Gold (TSX: LUG) are opportunistic buys as their share prices have dipped from their highs. Shopify’s stock is down due to seasonality, while Lundin Gold’s share price corrected due to a dip in gold prices.

The rise in crude oil prices pulled down the gold price. However, gold will remain a good investment amidst growing trade uncertainty. Central banks worldwide might buy more gold to fund their supply chain shifts. Gold prices could make new highs in the next two to three years. You could consider buying Lundin Gold at the dip and selling the stock whenever it makes a new high. As for Shopify, the stock is a buy in March and sell in the holiday season rally.

The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Celestica. The Motley Fool has a disclosure policyFool contributor Puja Tayal has no position in any of the stocks mentioned.

More on Stocks for Beginners

Muscles Drawn On Black board
Energy Stocks

Canada’s Defence Boom Could Be Just Getting Started: 3 TSX Stocks I’d Buy Now

Canada’s defence buildout isn’t just about buying gear, it’s about funding Canadian capabilities in satellites, training, and manufacturing.

Read more »

dividends grow over time
Stocks for Beginners

Canada’s $500 Billion Investment Push: 3 TSX Stocks I’d Buy Now

Canada’s $500 billion summit splash is exciting, but the smarter play may be owning a few proven TSX operators already…

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Dividend Stocks

The AI Boom Needs Copper, Uranium, and Power: This Canadian Stock Could Benefit

AI may feel digital, but its growth depends on massive real-world builds, and Aecon is positioned to get paid for…

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

I Plan to Keep These Stocks in My TFSA for at Least 10 Years

These TFSA stocks combine income, stability, and growth, giving me three different reasons to hold them for at least 10…

Read more »

Canadian Red maple leaves seamless wallpaper pattern
Dividend Stocks

Brookfield Just Launched a $50 Billion Canada Fund: Should You Buy BAM Stock?

Brookfield and CPP just unveiled a $50 billion “Maple Fund.” It’s a reminder that Brookfield gets the call when Canada…

Read more »

person on phone leaning against outside wall with scenic view at airbnb rental property
Stocks for Beginners

3 TSX Stocks to Buy With $1,000 This September

Got $1,000 to deploy this September? Here's a small-, medium-, and large-cap TSX stock to buy right now.

Read more »

AI investing could have upward trajectory
Stocks for Beginners

AI’s Biggest Bottleneck Isn’t Chips: These TSX Stocks Could Power the Next Boom

AI chips are impressive, but the real investing opportunity may be the power and fuel infrastructure needed to run data…

Read more »

man touches brain to show a good idea
Stocks for Beginners

What the Everyday Canadian Investor Needs to Know About the Summit

Canada’s $100-trillion-investor summit may sound abstract, but it points to one practical theme ordinary investors can follow: electricity infrastructure.

Read more »