Becoming a successful stock market investor doesn’t always mean having millions to throw into the market and see if your bets pull through for you. Even with an amount as small as $5,000, invested carefully in the stock market, it can provide a good start. Building a self-directed portfolio of high-quality stocks in a Tax-Free Savings Account (TFSA) and letting it grow over the years can help you unlock true financial freedom.
If I had $5,000 to invest and enough contribution room available in my TFSA, I would split it evenly across one growth-focused and one income-focused equity security from the TSX. Held in a TFSA, I can count on the growth stock to deliver outsized long-term gains. Since it will have its ups and downs, I can rely on the dividend stock to provide regular returns through quarterly dividends and offset potential losses.
Against this backdrop, I will discuss two TSX stocks that fit the bill for potential holdings to consider for your portfolio.
Source: Getty Images
5N Plus
5N Plus (TSX:VNP) is a $3 billion market-capitalization leader in the production of specialty semiconductors and performance materials that are critical for use across several important industries, including security, renewables, space, pharmaceuticals, and more. Headquartered in Montreal, the company uses proprietary technologies to produce the vital ingredients that its clients use.
The stock had a record-setting year in 2025, with its revenue increasing 35.2% year over year, and its net earnings skyrocketed by 244.2%. As of this writing, VNP stock trades for $33.41 per share, up by 85.61% from 12 months ago. Considering the growing demand for its products and services, there might be plenty more growth to come in the next few years. Investing right now might help you capture outsized long-term gains.
Toronto-Dominion Bank
Toronto-Dominion Bank (TSX:TD) is a $238.53 billion market-capitalization giant in the Canadian financial services sector. One of the Big Six Canadian banks, TD Bank stock is one of the top picks for Canadian investors seeking long-term passive income through reliable dividend distributions. TD Bank has a 169-year streak of paying its quarterly dividends to investors without fail.
The bank faced regulatory troubles in the US related to an Anti-Money Laundering (AML) investigation and absorbed the US$3 billion fine imposed on it. The bank continues its remediation efforts to strengthen its money laundering controls. A bank stock that has been around for almost two centuries and paid dividends for most of that time can be a reliable income-focused investment.
As of this writing, it trades for $142.93 per share and pays $1.08 per share each quarter, translating to a 3.02% dividend yield that you can lock into your self-directed portfolio today.
Foolish takeaway
By investing in equity securities that balance growth and stability, you can unlock what you need for long-term wealth-building. Held in a TFSA, you can count on your investments to provide you with tax-free returns that can help you achieve the financial freedom that successful investors enjoy. To this end, TD Bank stock and VNP stock can be good investments to consider.
