The Tax-Free Savings Account (TFSA) contribution limit for 2026 is $7,000. What is your investing strategy for this year? Seeing how things are shaping up, Canadian energy, artificial intelligence (AI), real estate, and insurance stocks are trading near their all-time high. This bull run comes after several years of flat growth from 2022 to mid-2025.
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The 3-stock TFSA strategy for 2026
While trade-related stocks and traditional software companies are showing tepid performance, energy and AI stocks continue to make new highs. This makes one skeptical of buying these stocks near their highs. Here is a three-stock TFSA strategy that helps you tap the trend, reduce downside risk, and benefit from a recovery rally.
One stock to tap the AI trend
The trend of AI is here to stay, and a Canadian stock that will benefit from it is Celestica (TSX:CLS). The original design manufacturer supplies Ethernet switches for network infrastructure. Celestica builds switches on Broadcom chipsets. It already has three hyperscaler clients, and even one can significantly increase revenue.
Celestica’s stock price fell 18% in June as Broadcom posted lower-than-expected earnings. However, the earnings and guidance were intact. The dip is due to over-expectations priced into the share price. A single quarter of earnings does not define the overall long-term growth.
The dip is an opportunity to buy Celestica as the orders are still intact. Considering that AI data centres are still being built on a humongous scale, Celestica stock still has more growth left.
One stock to reduce downside risk
While Celestica can help you tap the AI trend, Lundin Gold (TSX:LUG) can reduce downside risk as energy prices cool. Many countries have spent a significant portion of their foreign reserves buying oil. Central banks worldwide could buy more gold at a further accelerated rate to diversify trade partners and build more buying power.
That could drive the gold price up. I won’t be surprised if it reaches $5,000/oz and stays there. At present, the gold price is around $4,200/oz, which is still higher than Lundin’s all-in sustaining cost of $1,114 in the first quarter of 2026. If the Fed increases the interest rate, the gold price may fall. However, central banks’ gold buying will keep the gold price elevated, and you can enjoy high dividends during this period. Lundin Gold’s dividend policy suggests $300 million in free cash flow will be used for a $0.30 fixed dividend per share, and any surplus will go towards a variable dividend.
The company declared $0.91 in variable dividend per share in the first quarter, as its average realized price was $4,951/oz.
One stock to benefit from the recovery rally
Descartes Systems (TSX:DSG) stock has slipped 43% since 2025, when the US tariff war began. Since then, the supply chain management company has been struggling to make ends meet. Despite trade uncertainties, Descartes has sustained its revenue growth and Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) through acquisitions. Its Global Trade Intelligence solutions have been bringing in regular cash flows. Despite strong fundamentals, the share price has been weak.
The stock price recovery will come, but when it is difficult to say. The strategy is to buy the dip and hold it for the long term, as the recovery rally could drive the share price up more than 100%.
How to invest through a TFSA
Investors can allocate their $7,000 TFSA contribution across the three stocks in a 30:30:30 ratio and allocate the remaining 10% to the iShares NASDAQ 100 Index ETF (CAD-Hedged). The ETF can give technology sector exposure and help your portfolio generate market-linked returns.
