One Simple TFSA Move I’d Make Before Summer

Summer can be a great time to invest in a Tax-Free Savings Account (TFSA). It gives investors a mid-year reset. January gets all the attention, but by late spring investors often have a clearer view of their cash flow, tax refund, savings rate, and market opportunities.

A TFSA works best when investors use it for long-term growth, not just as a parking spot for idle cash. So let’s look at one simple move Canadians can achieve right now, to let the TFSA do all the work for you while you relax in the sun.

1 move to rule them all

The move is simple: use available TFSA room to buy a defensive dividend-growth stock before summer. Don’t overcomplicate it with five tiny positions. One high-quality business can do more than a scattered basket of weak ideas. The TFSA advantage comes from sheltering gains and dividends from tax. So, if a stock can grow earnings, raise dividends, and repurchase shares over time, the account keeps more of the benefit.

Many Canadians pause investing during summer because vacations, kids’ camps, cottage trips, and patio season eat into cash. So the move should happen before that money drifts away. Even a modest investment can matter. A $7,000 TFSA contribution invested in a stock that compounds at 8% annually could grow to more than $15,000 in 10 years without taxes on gains or dividends.

Consider MRU

With that in mind, let’s look at one dividend stock I’d consider this summer for a TFSA. Metro (TSX: MRU) is one of Canada’s major food and pharmacy retailers. It operates or services about 1,007 food stores and 635 drugstores, mainly in Québec and Ontario, under banners such as Metro, Food Basics,  and Adonis. That gives it roughly 1,600 points of sale and more than $22 billion in annual sales.

Over the last year, Metro stock leaned harder into discount grocery. Metro stock opened or converted three stores in the second quarter of fiscal 2026 alone. Its 2025 annual report also pointed to about a dozen new or converted discount-banner stores planned for fiscal 2026.

Meanwhile, its latest quarter backed up the defensive-growth story. In the second quarter of fiscal 2026, sales reached $5.1 billion, up 4.1% from the prior year. Food same-store sales rose 1.8%, while pharmacy same-store sales climbed 5.1%. The full-year backdrop also looks solid. In fiscal 2025, Metro generated $22 billion in sales, up 3.7% from fiscal 2024. Net earnings reached $1 billion, while adjusted diluted EPS rose 10.9% to $4.77. Online food sales grew 18.5% in fiscal 2025, and pharmacy same-store sales rose 5.6%.

Looking ahead

The big question now is where Metro stock is going, and is it worth it? The grocery stock recently traded at about 19 times earnings, with a dividend of 1.9%. Not huge, but it looks a lot better when you hear that Metro stock targets 30% to 40% of prior-year net earnings before extraordinary items, which leaves room for reinvestment and buybacks.

Furthermore, the company also returned $222.5 million to shareholders through share repurchases in Q2 2026. All this fits a TFSA as its business can keep working in normal, weak, and inflationary markets. Food and pharmacy demand doesn’t disappear, and Metro stock’s discount banners should remain useful if consumers keep looking for value.

Bottom line

In short, the simple TFSA move before summer is to stop waiting for a perfect market and buy one reliable compounder. Metro stock  fits because it offers essential sales, steady earnings, dividend growth potential, and share buybacks. And even $7,000 can bring in ample income.

So, for investors who want a practical TFSA pick before summer spending begins, Metro stock looks like a strong stock to tuck away and let grow.