If you have $7,000 in available contribution room in your Tax-Free Savings Account (TFSA), putting that capital to work in top Canadian stocks can be an effective strategy to build long-term wealth. A TFSA enables your investments to grow tax-free. Any capital gains you realize and any dividends you receive remain untouched by taxes, allowing compounding to work far more efficiently over time.
Against this background, here are two compelling stocks to invest your $7,000 TFSA contribution. These stocks are backed by strong fundamentals and operate in sectors benefiting from durable, long-term demand trends. With solid business models and favourable growth prospects, these stocks are well-positioned to outperform the broader Canadian market for TFSA investors.
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TFSA stock #1: MDA Space
MDA Space (TSX:MDA) could be a strong candidate for a TFSA portfolio. The company is one of Canada’s key participants in the global space industry, a sector with solid long-term growth prospects. As governments and private operators are accelerating investments in satellite networks, Earth observation, and defence-driven space capabilities, this creates a durable, multi-decade demand cycle for space technology companies like MDA.
MDA is well-positioned to capture this growth due to its presence across key segments of the space economy. The company operates in satellite systems, geointelligence, and space robotics. These areas are increasingly essential for modern communications, surveillance, and mission-critical operations. By working across these high-value verticals, MDA expands the range of opportunities it can pursue while strengthening its strategic importance to both commercial and government customers.
Supporting MDA’s investment case is its solid backlog of approximately $4 billion. Moreover, its $40 billion pipeline of opportunities signals solid growth ahead.
Overall, MDA Space’s solid revenue visibility, scalable growth opportunities, and exposure to the fast-growing space economy augur well for growth.
TFSA Stock #2: SECURE Waste Infrastructure stock
SECURE Waste Infrastructure (TSX:SES) is a compelling option for TFSA investors. The waste management and energy infrastructure company’s extensive platform allows it to serve multiple segments across the energy and industrial waste management industries. This adds stability and supports its growth.
Notably, a significant portion of SECURE’s revenue is derived from long-term contracts, which help generate consistent cash flow and reduce the company’s exposure to commodity price fluctuations. This dependable revenue base gives SECURE the flexibility to reinvest in its operations and pursue expansion opportunities.
Although the metals recycling segment is currently facing short-term pressure from tariffs, the company’s core business remains solid. Its primary waste management and infrastructure operations continue to deliver steady performance.
Looking ahead, the company appears well-positioned for continued expansion. Several major infrastructure projects are expected to come online in the near future, which could significantly boost the company’s earnings capacity. As these assets begin contributing to results, SECURE could see a meaningful increase in adjusted EBITDA, with much of the financial impact likely becoming visible in 2026 and beyond.
Meanwhile, management continues to invest in high-return projects and expand the company’s network, strengthening its competitive position and creating additional growth opportunities. Moreover, its metals recycling business is expected to recover soon and could provide an additional tailwind to the company.
Overall, SECURE Waste Infrastructure has the potential to continue outperforming the broader Canadian market in the years ahead.
