I’m Using These 3 Canadian Stocks as My TFSA Cornerstones

Wondering what Canadian stocks can form the foundation of a great TFSA strategy. These three stocks give you a mix of growth, income, and value!

Key Points
  • Descartes Systems Group (TSX:DSG): Ideal for growth, Descartes operates a Global Logistics Network, boasting strong financials with +25% profit margins and aiming for 12-15% annual growth, now attractively valued.
  • AltaGas (TSX:ALA): Offers steady income with a 2.5% yield, benefiting from a U.S. utility and Canadian midstream/export operations, posting substantial growth in Asia's LPG market.
  • Thomson Reuters (TSX:TRI): Provides growth, income, and value with proprietary data services, over 80% recurring revenues, a 2.6% yield with consistent dividend growth, and a focus on AI-driven applications.

The TFSA (Tax-Free Savings Account) should be a cornerstone of any wealth accumulation plan. When you get the benefit of tax-free investing, it can both save and make you money faster.

When you pay no tax, you keep all your gains. That additional savings can then be reinvested into more investments creating a compounding machine.

If I was looking for foundational stocks for my TFSA, I want an attractive combination of growth, income, and value. Here are three stocks I’d be happy holding as TFSA cornerstones.

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.

Source: Getty Images

A top growth stock for a TFSA

The first stock is Descartes Systems Group (TSX: DSG). This is my stock of choice for growth. Descartes operates the Global Logistics Network. It connects supply chain and logistics participants around the world. Descartes complements this with a wide suite of software services that save companies time, money, and effort.

Descartes has a very strong financial foundation. It has over $360 million of net cash. The company generates very strong free cash flows and high plus-25% profit margins. It aims to grow by 12–15% per year.

Given its strong foundation and diverse suite of services, it has been gaining market share in 2026. Despite tariffs and wars, it tends to do better in times of uncertainty as companies use it to better manage complexity.

Descartes stock is down 22% in the past year. It is trading at a 10-year low valuation range. It looks like an attractive addition to a TFSA right now.

A top steady income stock

If I am looking for income, AltaGas (TSX: ALA) is a perfect TFSA foundation. AltaGas has completed an exceptional turnaround over the past five years. It has sold off non-core businesses and cleaned up its balance sheet.

Today, AltaGas has two quality businesses: A U.S. natural gas utility and a Canadian midstream/export business. The utility provides a reliable, steady stream of growing income (with 7–8% annual rate base growth). The midstream business has really accelerated due to the conflict in Iran.

Countries in Asia are desperate for liquefied petroleum gases (LPG). AltaGas is increasingly becoming a major supplier to these nations. With new export capacity coming online in the next couple of years, it should continue to take market share in Asia and beyond.

AltaGas raised its guidance for 2026. It could see double-digit growth this year. The stock yields 2.5%. It has a track record of growing that dividend by a mid-single-digit rate. Given a strong balance sheet and steady growth, its dividend is likely to keep growing at a nice rate.

Growth, income, and value for a TFSA

The last TFSA stock providing a combination of growth, income, and value is Thomson Reuters (TSX: TRI). It provides proprietary data, research, and software platforms for the legal and accounting industries.

The company has worked to simplify its structure and focus on its core growth drivers. It is leaning heavily into artificial intelligence to produce applications that streamline workflows for its customers.

The company has low churn, a high stream of recurring revenues (over 80%), and high single-digit organic growth. With a strong balance sheet, it can afford to invest in growth and pay its steadily growing dividend.

TRI stock yields 2.6% today. It has increased its dividend by over 10% for the past five years. This stock is trading at its lowest valuation in eight years. It could be a nice TFSA add for growth, income, and value today.

Fool contributor Robin Brown has positions in Descartes Systems Group. The Motley Fool recommends Descartes Systems Group and Thomson Reuters. The Motley Fool has a disclosure policy.

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