A Perfect TFSA Stock for a Choppy 2026

With reliable operations, steady long-term growth potential and a 2.3% yield, this stock is the perfect pick for TFSAs in 2026 and beyond.

Key Points
  • Exchange Income (EIF) is a resilient TFSA candidate with niche aviation services, government/defence contracts, and specialized manufacturing that generate stable, non‑cyclical demand.
  • It’s also growing: revenue rose ~30% to $867M last quarter and adjusted EPS beat expectations ($0.61 vs ~$0.37).
  • The stock yields ~2.3% and has paid a dividend since 2004 with 18 increases, offering income plus steady growth for long‑term TFSA investors.

With markets continuing to experience volatility as instability in the Middle East remains front and centre, and with uncertainty expected to continue through 2026, a lot of investors are starting to look for stocks they can confidently own in their TFSA for the long haul.

Owning high-quality businesses with resilient operations is always important, but it matters even more in these environments when stock market volatility and macroeconomic uncertainty are creating a tonne of headwinds for many businesses.

And when it comes to your TFSA, where the goal isn’t only short-term gains, but also building long-term wealth and taking advantage of its tax-free nature, owning reliable businesses matters even more.

That’s why Exchange Income Corporation (TSX: EIF) might be one of the best stocks on the TSX not just to own for the long haul, but a stock you can have confidence in right now

It’s not a flashy stock, but it’s built in a way that can give investors the peace of mind that the core operations can continue generating cash flow, regardless of economic conditions.

stock chart

Source: Getty Images

A TFSA stock you can confidently own through 2026 and beyond

At first glance, Exchange Income Corporation can look like a simple, cyclical aviation business. However, it actually operates in a group of very specific niches where demand doesn’t just disappear when the economy slows down. That’s a huge reason why it’s a stock you can own in your TFSA through choppy markets.

On the aviation side, the company provides cargo, passenger, and medevac services to remote northern communities. These aren’t optional services. People rely on them for basic transportation, supplies, and healthcare access, which creates a steady base of demand that isn’t tied to consumer spending trends.

On top of that, the stock has a meaningful amount of exposure to government and defence-related work. That includes surveillance, aircraft modification, and other long-term contracts that are often locked in for multiple years.

In addition, it also has a manufacturing segment, which focuses on specialized products like infrastructure matting and other niche industrial solutions, which helps diversify operations even further.

So, when you step back and look at the whole business, it’s not really cyclical in the way many people assume. It’s built around services and products that are needed regardless of market conditions, which is why it’s such a reliable stock to buy in your TFSA and hold for years.

On top of its reliable operations, Exchange Income is still growing

More importantly, though, a high-quality TFSA stock should not only be stable; it should also still be growing.

And in Exchange Income’s case, its revenue jumped 30% to $867 million in its most recent quarter while its adjusted earnings per share came in at $0.61, well ahead of expectations of around $0.37.

So, although Exchange Income is certainly a reliable stock with defensive operations, it’s also a business that’s continuing to expand.

Furthermore, in addition to its resiliency and the long-term growth potential it offers, investors are also getting paid to own it. In fact, right now not only does the stock yield roughly 2.3%, but it’s also worth noting that the company has maintained its dividend since 2004 and has increased it 18 times over that stretch.

That goes to show how reliable Exchange Income’s operations are, and how it can consistently navigate different market and economic environments.

That’s why Exchange Income might be the perfect TFSA stock for 2026 and beyond. It’s a company that offers stability from its core operations, while still delivering growth and income.

And in a TFSA, where the goal is to build long-term, tax-free wealth, that combination is ideal.

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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