Travel and vacations are great, but investing could be a more worthwhile activity this summer. You can save on costs by doing local getaways, although maximizing your Tax-Free Savings Account (TFSA) is even better. The TFSA returns will benefit you for years, not for a fleeting moment.
The strong performance of the TSX in 2026 sets the stage to position your TFSA for tax-free growth and passive income generation. Combining a major Canadian bank with an institutional real estate landlord offers a balanced strategy. TFSA investors can expect consistent cash flows, quarterly and monthly, respectively.
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Dividend longevity
Canadian Imperial Bank of Commerce (TSX:CM) is a no-brainer TFSA anchor for its size and dividend longevity. The $156.8 billion bank, Canada’s fifth-largest lender, has a 158-year-long dividend track record. At $171.36 per share, CIBC investors enjoy a nearly 40% year-to-date gain on top of the super safe 2.49% dividend (40.48% payout ratio), with a quarterly payment schedule.
The big bank stock has likewise delivered massive capital growth. Its total three-year return is +263.2%, representing a 53.7% compound annual growth rate (CAGR). While the yield is below the market average, you lock in dependable dividend income for years to come alongside healthy long-term returns.
In Q2 fiscal 2026 (three months ending April 30, 2026), revenue and net income increased 14% and 23%, respectively, to $8 billion and $2.5 billion compared to Q2 fiscal 2025. The provision for credit losses (PCL) was flat at $605 million, with no material credit concerns, according to Frank Guse, Chief Risk Officer of CIBC.
CIBC president and CEO Harry Culham notes the double-digit growth in net income and robust quarterly results across all business units. Also, during the quarter, a long-desired asset disposition came through. Culham confirmed the sale of CIBC’s 91.67% interest in CIBC Caribbean to the Bank of N.T. Butterfield & Son. The cash-and-stock transaction is worth US$1.6 billion. The bank plans to reallocate the funds toward the highest strategic growth priorities.
Peace of mind is unquantifiable. You can sit and forget after investing in CIBC.
Defensive asset
Choice Properties (TSX: CHP.UN) is not only a monthly cash-flow generator but also a defensive holding in a TFSA. The $11.4 billion real estate investment trust (REIT) owns and operates retail, industrial, and mixed-use residential properties. Its retail portfolio is grocery-anchored, with Loblaw as the REIT’s anchor tenant (57% tenancy).
The commercial portfolio supports the full omnichannel ecosystem, from distribution to consumer shopping. Meanwhile, the residential side strengthens the retail assets, serving as a built-in amenity for residents.
If you invest today, the share price is $15.50, while the dividend yield is 4.97%. Assuming you maximize the TFSA annual limit in 2026, your $7,000 will generate $29 tax-free every month.
While the REIT incurred a net loss of $176.4 million in Q2 2026, CHP.UN displays steady performance, up 7.7% year to date. As of June 30, 2026, the occupancy rate and long-term renewal leasing spreads remained high at 97.7% and 19.0%, respectively. Rael Diamond, president and CEO of Choice Properties, said, “We continue to unlock value through strategic leasing initiatives across our necessity-based retail portfolio, while capitalizing on tenant demand to drive rental rate growth in our industrial portfolio.”
Tangible reward
Foregoing vacation and travel this summer and redirecting your funds to the TFSA will deliver immediate, tangible rewards. Your contribution will not disappear; instead, it will provide recurring income streams.
