How to Use Your Annual TFSA Room to Double Your Contributions

If your goal is long-term tax-free wealth, these two Canadian stocks deserve a closer look before you invest your latest TFSA contribution.

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Key Points
  • A single annual TFSA contribution could grow into much more when you invest in quality businesses and stay patient.
  • See why Alimentation Couche-Tard (TSX:ATD) continues to reward investors with strong earnings growth and dividend increases.
  • Find out how Waste Connections (TSX:WCN) is using steady growth, acquisitions, and resilient demand to support long-term returns.

You don’t need to run after risky bets in the market to double your Tax-Free Savings Account (TFSA) contribution. You can aim to achieve that by starting to invest in fundamentally solid companies that sell everyday services, produce dependable cash flow, and keep finding ways to grow.

When such businesses improve margins, repurchase shares, raise dividends, or expand through acquisitions, shareholders can benefit from several sources of return. Inside a TFSA, those gains can compound without Canadian tax, giving patient Foolish investors a big advantage.

In this article, I’ll focus on two proven Canadian stocks that could help make your TFSA contribution work harder and potentially double in value over time.

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Alimentation Couche-Tard stock

The first compounder you can consider to grow your TFSA contribution is Alimentation Couche-Tard (TSX: ATD), a global convenience-store and fuel retailer.

This Canadian firm operates close to 17,300 stores across 27 countries and territories under popular banners such as Circle K and Couche-Tard. Following a 32% rally over the last year, ATD stock currently trades at $90.41 per share. As a result, it now carries a market cap of about $83 billion and offers an annualized dividend yield of around 1%.

That recent strength in ATD stock has been backed by its improving operating results. In the fourth quarter of its fiscal 2026 (ended in April), Couche-Tard’s total revenue rose 19.8% year-over-year (YoY) to US$19.5 billion. Higher fuel selling prices, acquisitions, currency translation, and organic convenience-store growth drove the increase. Its total gross profit climbed 19.4% YoY to US$3.5 billion with the help of stronger fuel margins, acquisitions, and merchandise growth.

With this, the company’s adjusted net earnings jumped 51.2% from a year ago to US$667 million. Higher fuel margins, positive organic growth, and acquisition contributions outweighed inflation, strategic investments, and a higher tax rate.

Interestingly, Couche-Tard opened or rebuilt 130 stores during fiscal year 2026, had another 34 under construction, and expects synergies from acquired European assets to keep rising. For investors trying to grow a TFSA contribution into something much larger, Couche-Tard offers several return drivers, including strong earnings growth, store expansion, and dividend increases, which could all support long-term compounding.

Waste Connections stock

Another business that could fit perfectly into a TFSA compounding strategy is Waste Connections (TSX: WCN), a company that provides collection, transfer, disposal, recycling, renewable-fuel, and related services to about nine million customers.

At the time of writing, WCN stock traded at $244.80 per share with a market cap of $62.2 billion. At this market price, it has an annualized dividend yield of 0.8%.

Waste Connections posted revenue growth of 6.4% YoY in the first quarter. Similarly, its adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 8% from a year ago to US$769.5 million, even with severe weather and higher fuel costs. As a result, the company’s adjusted net profit climbed to US$314.9 million from US$293.1 million. Notably, acquisition revenue and stronger oilfield waste activity also supported that growth, although unit volume and recycling remained soft.

Waste Connections now sees more room to grow through acquisitions, pricing retention, special waste activity, and technology investments, including wider use of artificial intelligence (AI). Overall, essential services, pricing power, focus on acquisitions, and a growing dividend make this Canadian stock attractive for long-term TFSA investors.

Fool contributor Jitendra Parashar has positions in Alimentation Couche-Tard and Waste Connections. The Motley Fool has positions in and recommends Alimentation Couche-Tard and Waste Connections. The Motley Fool has a disclosure policy.

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