Your Tax-Free Savings Account (TFSA) does not have to be worth a fortune by age 55 to make a difference. What matters most is how you invest your hard-earned savings from this point on. Canada Revenue Agency data for the 2023 contribution year shows that Canadians aged 55 to 59 had an average TFSA value of $37,600. The same group contributed an average of $12,302 and still had $52,972 in unused contribution room. That means many Canadians still have plenty of room to grow their tax-free savings. And reliable Canadian dividend stocks could be a good way to get started.
In this article, I’ll talk about two top dividend stocks that long-term TFSA holders could consider buying now to maximize the long-term potential of their remaining contribution room.
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TD Bank stock
For a 55-year-old TFSA investor wanting to build tax-free income and growth, Toronto-Dominion Bank (TSX:TD) could offer a great mix of dividends and broad banking exposure. As one of the largest Canadian banks, it operates across Canadian banking, U.S. retail banking, wealth management, insurance, and wholesale banking.
At the time of writing, TD stock traded at $169.69 per share with a market cap of $283.5 billion and a 2.6% annualized dividend yield. The stock had climbed 67% over one year and 31% year to date.
That rally has been backed by stronger earnings. In the second quarter of its fiscal year 2026 (ended in April), TD’s adjusted net income rose 15% year-over-year (YoY) to $4.2 billion, while its adjusted earnings increased 21% to $2.38 per share. The bank’s Canadian personal and commercial banking segment posted record second-quarter revenue and earnings, while its wealth management, insurance, and wholesale banking also reached record earnings.
Meanwhile, TD is also investing in artificial intelligence (AI), client experience, and business simplification. Its Common Equity Tier 1 capital ratio of 14.3% gives it a solid capital cushion.
Its diversified banking business, solid capital position, and consistent dividend make TD an attractive stock for TFSA investors looking to build reliable tax-free income and long-term wealth.
Sun Life stock
Sun Life Financial (TSX:SLF) could be another TFSA-friendly stock for investors to build long-term wealth through insurance, wealth, health, and asset management. After gaining 35% over the last year, its stock currently trades at $113.81 per share with a market cap of $63.1 billion. At this market price, it offers a 3.4% annualized dividend yield.
In the first quarter of 2026, the company’s underlying net income reached $1.1 billion, while underlying earnings rose 4% YoY to $1.89 per share. Its growth in Asia, Canada, and the U.S. Health and Risk Solutions supported the quarterly performance. However, its reported net income fell 50% last quarter because of market-related effects, acquisition charges, and a proposed legal settlement.
Despite the short-term setbacks, Sun Life is continuing to expand its asset management platform. Recently, it completed the US$350 million acquisition of Bell Partners, adding scale in U.S. multifamily real estate.
Its participation in a new Canadian AI consortium could also support more efficient and responsible use of artificial intelligence. With a growing global wealth and insurance business, dependable dividend, and continued expansion into new markets, Sun Life remains an appealing long-term TFSA investment for income and growth.
