Million-dollar Tax-Free Savings Accounts (TFSA) make investing sound far more glamorous than it usually is. Find one extraordinary growth stock, hold it for decades, and eventually acquire a tasteful collection of yachts.
That could happen. A more repeatable path begins with an extremely boring decision: determining how much you’ll contribute automatically every year.
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Time does the work
The 2026 TFSA dollar limit is $7,000, although personal contribution room depends on age, residency, previous contributions, and withdrawals. Someone investing the full amount at the beginning of every year could potentially cross $1 million under several reasonable long-term return assumptions.
| ASSUMED ANNUAL RETURN | YEARS TO EXCEED $1 MILLION | APPROXIMATE ENDING VALUE |
|---|---|---|
| 6% | 38 | $1,008,409 |
| 7% | 35 | $1,035,394 |
| 8% | 32 | $1,014,654 |
These calculations assume smooth returns and annual contributions made at the beginning of each year. Real markets will provide nothing remotely that tidy. Returns will bounce around, contribution limits will change, and some years may produce losses.
A boring stock for an ambitious goal
Canadian National Railway (TSX: CNR) is the type of stock I’d consider buying regularly inside a long-term TFSA. Rail transportation isn’t new, trendy, or likely to dominate discussions at an artificial-intelligence (AI) conference. That’s part of its appeal.
CNR stock operates an approximately 18,900-mile rail network connecting three coasts across Canada and the United States. Recreating that infrastructure would require an extraordinary amount of capital, land, regulatory approval, and patience. Existing railway tracks are therefore considerably more difficult to disrupt than the average smartphone app.
The business also continues to grow. Second-quarter revenue increased 11% year over year to $4.8 billion, while adjusted earnings per share (EPS) climbed 11% to $2.08. Revenue ton miles, which measure freight volume and distance, increased 5%. Management consequently raised its 2026 outlook and now expects adjusted EPS growth in the mid-to-high single digits.
A quiet contributor
CNR stock currently pays a quarterly dividend of $0.92 per share, equal to $3.66 annually. At a recent share price near $169, the stock yields approximately 2.2%.
That yield won’t impress investors hunting for immediate income. However, a millionaire-building TFSA needs long-term total returns, not simply the largest payment available. CNR stock has also increased its dividend for 30 consecutive years, including a 3% increase for 2026.
Investors learning about dividend investing in Canada should pay attention to earnings and free cash flow growth alongside the starting yield. A smaller payment that grows may eventually become more valuable than a 7% yield followed by a thoroughly unpleasant dividend cut.
A monthly bill
Finding $7,000 every January can be difficult. A monthly contribution of approximately $583.33 adds up to the annual limit, while someone paid every two weeks could contribute roughly $269.23 per paycheque.
Those deposits could be invested gradually in CNR stock and other high-quality companies, reducing the temptation to wait for the perfect entry price. Investors can also build a diversified stock portfolio rather than expecting one railway to carry an entire TFSA.
What’s more, CNR stock isn’t risk-free. Freight demand can weaken during a recession, trade restrictions can reduce cross-border volumes, and wildfires, labour disputes, derailments, or higher costs can disrupt operations. The shares also trade near 22 times trailing earnings, so this isn’t an obvious bargain.
Bottom line
The first step toward a million-dollar TFSA isn’t identifying one miraculous stock. It’s choosing a contribution amount and investing it consistently through good markets and bad ones.
CNR stock offers difficult-to-replicate infrastructure, growing earnings, rising free cash flow, and a three-decade dividend-growth record. Those qualities won’t turn $7,000 into $1 million overnight. Combined with regular contributions and enough time, however, boring can become surprisingly lucrative.
