How Your 2026 TFSA Contribution Could Grow to $280,000 or More

Backed by strong long-term growth prospects, these two stocks have the potential to deliver multiple-fold returns, helping TFSA investors create substantial wealth over time.

Key Points
  • Celestica and 5N Plus are poised for strong long-term returns, driven by their strong financial performance, innovative growth strategies, and exposure to rapidly expanding markets such as AI and renewable energy.
  • Both companies have demonstrated exceptional stock performance and are well-positioned to continue capitalizing on favorable industry trends, making them excellent candidates for a TFSA investment to maximize tax-free growth over the next 25 years.

The Tax-Free Savings Account (TFSA) is one of the most effective tools for building long-term wealth, allowing investors to earn tax-free capital gains and dividend income on eligible contributions up to the annual contribution limit. For 2026, the Canada Revenue Agency has set the TFSA contribution limit at $7,000. If invested in high-quality growth stocks capable of generating an average annual shareholder return of more than 15.9%, that single contribution could grow to over $280,000 over the next 25 years.

With that in mind, let’s examine two Canadian stocks that have the potential to deliver these kinds of long-term returns.

chip glows with a blue AI

Source: Getty Images

Celestica

Celestica (TSX: CLS) is an electronics manufacturing services (EMS) company that has delivered an impressive return of approximately 2,430% over the last three years, at an annualized rate of approximately 193%. Its strong financial performance and exposure to the high-growth artificial intelligence (AI) market have driven its stock price higher.

Meanwhile, more companies are increasingly moving beyond pilot AI (artificial intelligence) initiatives and embedding AI into their core strategies and day-to-day operations. Also, governments and individuals are increasingly adopting AI, thereby driving the demand for computational power. This demand growth has prompted hyperscalers to expand their AI-ready data centres, thereby creating long-term growth potential for Celetica.

Amid a favourable environment, the company is focusing on developing innovative products to meet its customers’ growing needs and strengthen its market share. Also, it is strengthening its production capabilities through planned investments, including a new production facility in Fort Worth, Texas, to increase capacity and support future growth in next-generation data centre infrastructure and advanced technology solutions. Given the favourable environment and its growth initiatives, I expect Celestica to continue driving revenue and earnings, thereby supporting its stock price growth.

5N Plus

Another high-growth stock with compelling long-term prospects is 5N Plus (TSX: VNP), which produces specialty semiconductors and performance materials used in various applications across several high-growth industries. The company has rewarded shareholders with exceptional returns, with its stock surging approximately 1,020% over the past three years, representing an annualized return of 124%.

Looking ahead, I expect 5N Plus to continue delivering strong financial growth, supported by the structural expansion of key end markets such as terrestrial renewable energy and space-based solar power. Given its ability to supply ultra-high-purity specialty semiconductor compounds, the company is well-positioned to capitalize on these long-term industry trends.

To support growing customer demand, 5N Plus continues to expand its production capabilities. The company expects to increase solar cell production capacity at AZUR SPACE Solar Power GmbH by 25% this year. In addition, the US$18.1 million grant from the U.S. government could strengthen its germanium recycling and refining capabilities at its St. George, Utah, facility, enhancing its ability to meet the rapidly growing demand for germanium-based technologies in the United States.

The company’s robust order book further reinforces its growth outlook. At the end of the first quarter, 5N Plus reported a backlog of $434.4 million, representing approximately 336 days of annualized revenue – 68 days higher than a year earlier. This sizeable backlog provides strong revenue visibility and highlights sustained customer demand across its key end markets. Backed by its solid financial performance, expanding production capacity, and favourable long-term industry trends, I believe 5N Plus has the potential to deliver outsized returns over the long term.

Fool contributor Rajiv Nanjapla 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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