My tax-free savings account (TFSA) is packed with my top dividend stocks as well as those stocks that I believe have the most potential upside. These investments are essentially the highest potential return investments. This means that they bring the highest potential tax savings for my TFSA.
Let’s take a look at my top TFSA stock that I’m holding for the long term.
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Brookfield Infrastructure Partners – The bullish case
As one of the largest owners and operators of critical global infrastructure networks, Brookfield Infrastructure Partners LP (TSX:BIP.UN) is in a sweet spot. As it pursues its growth, it has the backing of the larger Brookfield Companies Group. This means that it has access to funds from a leading asset management group, Brookfield Asset Management, giving rise to financing and partnerships as well as origination opportunities.
Mega-growth trends for this TFSA stock
Brookfield has its toes in industries and trends that are experiencing secular growth tailwinds – digitization, decarbonization, and deglobalization. Let’s take a look at these trends.
Digitization is the process of converting large amounts of data to a digital format. Artificial intelligence (AI) and automation enable organizations to be more efficient and profitable. But AI requires increased power and data load in order to work its magic. And this is where Brookfield Infrastructure comes in, helping to upgrade existing infrastructure from power generation to transmission to data centres.
Decarbonizing the energy sector requires an unprecedented increase in clean energy investments. This means cleaning up global power grids, which is the largest decarbonization opportunity today. Brookfield Infrastructure stock is participating in this through investment in renewable power, green hydrogen, and battery storage infrastructure.
Finally, deglobalization is the onshoring of the production of critical goods, the enhancement of global supply chains, and the support of more localized energy sources. For this, building and maintaining the right infrastructure is key. This is something that Brookfield Infrastructure Partners is very much participating in.
Strong operating momentum
In Brookfield Infrastructure’s latest quarter, the company posted a 10% increase in funds from operations, to $709 million. Strong results in all of its businesses drove this increase. The notable standouts were Brookfield’s data and midstream segments, which increased 46% and 12%, respectively.
As per Brookfield’s management, Brookfield is “benefitting from an infrastructure investment super-cycle that’s expanding in both scope and scale.” In fact, Brookfield Infrastructure is armed with record liquidity of $6 billion to take advantage of this once-in-a-lifetime opportunity.
Looking ahead – Continued growth for this TFSA stock
As Brookfield Infrastructure heads into the future, there is much that TFSA investors can be excited about. Along with a strong balance sheet, Brookfield is ramping up its capital recycling program. So far in 2026, Brookfield closed over $1 billion in asset sales. These asset sales will improve Brookfield’s liquidity. And this money will be redeployed into higher return opportunities.
The bottom line
Brookfield Infrastructure stock is yielding a generous 4.4% today, with an expected 10% growth rate in its free funds flow in 2026. Looking ahead, the company is equipped to continue growing its dividend and taking advantage of the strong demand trends in its chosen areas of focus.
In conclusion, this top TFSA stock offers a great combination of strong dividend income, strong demand for its infrastructure assets, and stability.
