Where to Invest Your $7,000 TFSA Contribution

For Canadians with unused Tax-Free Savings Account (TFSA)  contribution room in 2026, this could be an ideal time to put that capital to work in high-quality Canadian stocks. A $7,000 investment may not sound life-changing today, but inside a TFSA, every dollar of capital gains, dividends, and long-term growth stays completely tax-free.

Canadians should focus on companies with solid fundamentals, durable demand, competitive advantages, expanding market opportunities, and strong execution. These companies are likely to grow rapidly and deliver notable returns over time.

Against this backdrop, here are two Canadian stocks to invest your $7,000 TFSA contribution.

Brookfield Renewable Partners

Brookfield Renewable Partners (TSX:BEP.UN) could be one of the top stocks to add to your TFSA portfolio. It has a diversified portfolio of renewable power assets, including hydroelectric facilities, utility-scale solar and wind projects, nuclear services, distributed generation, and other sustainable energy solutions.

The surge in artificial intelligence (AI) infrastructure is driving electricity demand, while the ongoing transition toward cleaner energy sources continues to accelerate. The favourable demand environment for clean energy augurs well for growth for companies like Brookfield Renewable. As governments and corporations invest heavily in decarbonization and digital infrastructure, demand for reliable renewable power is expected to remain strong for years.

Supporting its growth is its solid business model. The majority of its revenue is generated through long-term contracted power agreements, providing highly predictable cash flow regardless of short-term market fluctuations. In addition, much of its revenue is indexed to inflation, helping protect earnings and cash generation during periods of rising prices.

Thanks to its resilient business model and contracted cash flow, Brookfield Renewable has increased its distribution by at least 5% annually for 15 consecutive years. Besides steady dividend income, strong demand positions it well to deliver solid capital gains.

Looking ahead, Brookfield Renewable appears well-positioned to deliver solid returns. The company regularly recycles capital from mature assets into higher-growth opportunities, enabling it to grow while maintaining a healthy balance sheet. At the same time, its expanding development pipeline, investments in battery storage, and involvement in grid modernization projects provide additional long-term growth drivers.

Celestica

Celestica (TSX:CLS) is a top stock to add to your TFSA portfolio to capitalize on the AI infrastructure boom. While Celestica stock has gained significantly in value, strong AI-driven demand suggests that the rally is far from over.

The technology manufacturer supplies networking switches, storage systems, servers, and data centre infrastructure used by major cloud and hyperscale providers. As global demand for AI computing power accelerates, Celestica is benefiting from increased spending on advanced data centre equipment.

The company delivered impressive first-quarter 2026 results, with revenue climbing 53% year over year. Adjusted earnings per share jumped 80%. Its Connectivity & Cloud Solutions division remained the key growth driver, with revenue jumping 76%, driven by strong demand for high-speed 800G networking products and AI infrastructure deployments.

Management remains optimistic about future growth. The company recently increased its 2026 revenue guidance and expects adjusted earnings growth of roughly 68% this year. Leadership also anticipates continued momentum into 2027 as AI adoption expands globally.

With hyperscale cloud providers continuing to invest aggressively in AI infrastructure, Celestica appears well-positioned to capitalize on AI demand, making it an attractive TFSA stock for growth-focused investors.