Maximizing Returns: How to Best Use Your TFSA in 2026

These Canadian stocks have solid growth prospects and a few offer dividends, making them ideal TFSA stocks to maximize returns.

Key Points
  • A TFSA lets you grow investments tax-free, and with a $7,000 contribution limit in 2026 it provides an opportunity to invest in top Canadian stocks.
  • To maximize returns, buy stocks with strong growth potential and hold them for the long term.
  • Investors should focus on regular contributions and diversification to maximize returns.

A Tax-Free Savings Account (TFSA) remains one of the best ways for Canadians to build wealth while keeping investment gains tax-free. In 2026, investors can contribute up to $7,000, making it an ideal opportunity to grow long-term savings. To maximize returns, prioritize quality Canadian stocks with strong growth potential, allowing your gains to compound tax-free over time.

Further, maintaining a diversified portfolio and making regular contributions can further enhance long-term performance by taking advantage of market fluctuations and staying invested. With the right strategy, a TFSA can become a powerful wealth-building tool.

With a focus on maximizing returns, here are the top Canadian stocks to consider buying and holding in your TFSA.

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Source: Getty Images

Top TFSA stock #1: Bird Construction

Bird Construction (TSX: BDT) is an attractive Canadian stock to hold inside a TFSA to enhance your portfolio’s returns. Although shares of this construction and maintenance company have more than doubled over the past year, its growth appears far from over, with strong demand likely to support further gains in 2026 and beyond.

Bird Construction is benefiting from rising investments in infrastructure, energy, and industrial projects across Canada. It is witnessing solid demand from high-growth sectors such as defence, nuclear, healthcare, LNG, renewable power, critical minerals, and transportation, providing a steady stream of new opportunities.

Bird is also well-positioned to capitalize on the rapid expansion of AI data centres, a market management estimates exceeds $20 billion. Meanwhile, its strong balance sheet and strategic acquisitions position Bird Construction well to deliver solid growth and enhance shareholder value through higher dividends.

Bird Construction ended the first quarter with an order backlog of about $11 billion, offering solid revenue visibility. With diversified operations and exposure to multiple growth markets, the company appears well-equipped to deliver significant tax-free returns.

Top TFSA stock #2: Celestica

Celestica (TSX: CLS) is one of the top TSX stocks to consider for a TFSA, thanks to its strong position in AI-driven networking and data centre infrastructure. Although the stock has posted impressive gains, it has significant room to run. Rising AI investments by hyperscale customers are expected to drive its growth well beyond 2026.

Celestica is set to benefit from new customer wins, an expanding order backlog, and solid demand for its advanced networking solutions. It is seeing robust demand for its 800G Ethernet switches, while next-generation 1.6T switch production could provide another growth catalyst later this year.

Celestica is also expanding its AI and machine-learning computing business, with higher production volumes and new rack-scale computing programs expected to boost growth through 2026. Despite near-term supply-chain challenges, improving component availability and increased manufacturing capacity position the company to capitalize on rising demand, supporting its long-term earnings and share price growth.

Top TFSA stock #3: SECURE Waste Infrastructure

SECURE Waste Infrastructure (TSX: SES) is another attractive growth and income stock to hold inside a TFSA. It provides waste management, treatment, and disposal services, as well as infrastructure services, to industrial and energy customers. Its diversified business model and resilient operations position it well to deliver steady growth. Notably, its long-term agreements help generate steady cash flow across market cycles.

Looking ahead, long-cycle water infrastructure projects that progressed through 2025 are expected to begin contributing meaningfully to revenue. Meanwhile, SECURE’s expansion into underserved markets should strengthen its competitive position and support its growth.

The improving metals recycling business also offers upside as operational efficiencies boost profitability. At the same time, SECURE is focused on investing in projects backed by customer demand and contracted volumes, helping safeguard returns and cash flow. In addition, the company’s targeted acquisitions could expand its infrastructure network and recurring revenue base.

Overall, SECURE appears well-positioned to deliver solid financial performance over the coming year.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Celestica. The Motley Fool has a disclosure policy.

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