“One of a kind” is an apt description for the Tax-Free Savings Account (TFSA), which is now a highly popular investment account in Canada. Account opening is simple, but the key features are awesome. You don’t have to show proof of income or employment. The TFSA is available to Canadian residents who are at least 18 years old with a valid Social Insurance Number (SIN).
More importantly, the TFSA has no maximum age limit. In addition to tax-free growth and accumulated contribution room, you can contribute for life. Withdrawals also have no tax consequences.
Since there’s no mandatory conversion to a retirement account like the Registered Retirement Income Fund (RRIF), the TFSA deserves a forever companion. A stock I’d choose to build tax-free wealth with and keep forever inside a TFSA is Brookfield Renewable Partners (TSX:BEP.UN).
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Renewable energy powerhouse
Brookfield Renewable is my top-of-mind choice because of its ability to meet the surging global energy demand. It owns and operates diversified renewable power assets across North America, South America, and Europe. The $14 billion pure-play clean energy company plans to deploy up to $10 billion in capital over the next five years.
Contented investors
TSX’s utilities sector (+10.7%) has been steady amid heightened volatility thus far in 2026. BEP.UN, however, outpaces the sector with its 29% year-to-date gain. At $47.28 per share, dividend investors feast on the 4.5% yield. Management’s distribution growth guidance is 5% to 9%, with a total returns target of 12% to 15%.
The $25,000 available in TFSA contribution room will generate $281.88 in tax-free income every quarter. Assuming you reinvest the dividends, the capital will compound to $61,243.30 in 20 years, excluding price appreciation over that period.
Durable cash flows
Brookfield Renewable operates full-service platforms in major power markets in 25 countries. Low-cost assets generate durable, operating cash flows. Multi-decade trends in electrification, reindustrialization, and digitalization with renewables are tailwinds and present significant opportunities.
The operating fleet’s current generation capacity is 47 GW, with a 10 GW development run-rate by 2027. Brookfield Renewable sees outsized earnings growth on the horizon for the business. Moreover, it is well-positioned to deliver stable inflation-linked cash flows and long-term value for investors.
First-quarter highlights
Parent company Brookfield Asset Management and La Caisse, a global fund manager, entered into a definitive agreement to acquire renewable energy company Boralex. Connor Teskey, CEO of Brookfield Renewable, said the significant operating base and de-risked development pipeline of Boralex complements BEP.UN’s existing business.
Boralex will become an independent private entity upon the transaction’s closing in Q4 2026. Brookfield will provide operational, strategic, and financial support to accelerate its growth path.
“We had a strong start to the year, delivering record financial results, advancing our growth priorities and strengthening our balance sheet. Growing energy demand is now occurring alongside a renewed focus on energy security,” said Teskey. In Q1 2026, funds from operations (FFO) increased 19% year-over-year to a record $375 million. He added that growth will continue from the scaling development activities and asset sales.
Lifelong holding
Brookfield Renewable Partners is an ideal lifelong TFSA stock. You have a tax-free income engine for decades to come.
