It’s no secret that a high yield can be appealing when you’re choosing Canadian stocks for your TFSA.
However, even if you prioritize income, the best long-term investments offer more than just income today.
In fact, the highest-quality TSX stocks almost always do both. They’re often among the most defensive and durable companies while constantly finding new ways to grow, which gives them more opportunities to pay you more over time.
And while these stocks are the highest-quality picks for a reason, they’re especially valuable in a TFSA, where you can let those investments grow and compound tax-free for decades.
That’s why Brookfield Renewable Partners (TSX: BEP.UN) is undoubtedly one of the best Canadian stocks to buy in your TFSA.
Whether you’re looking for growth or income, Brookfield offers both, not to mention an experienced management team with a strong track record of building and buying power assets in an industry with massive long-term potential.
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A renewable power business with room to grow
Brookfield isn’t a typical green energy stock either. It’s a massive business with operations all over the world and roughly 49 gigawatts of operating capacity across hydroelectric, wind, solar and storage assets.
Those assets already generate significant cash flow to support its distribution, while Brookfield still has several ways to expand as electricity demand grows.
Another advantage of Brookfield is that much of its power is sold under long-term agreements. That not only helps reduce risk but also gives the company a better idea of what it will earn from those assets in the years ahead, making its future cash flow more predictable.
That matters when Brookfield is deciding where to invest, especially since building and acquiring power assets requires significant capital.
Plus, Brookfield is already well-positioned to capitalize on the rapidly growing demand for electricity. For example, its hydroelectric assets could become particularly valuable as demand grows. Data centres need reliable electricity all day, not just when the sun is shining or the wind is blowing.
For example, Brookfield already has a framework agreement with Google to deliver up to 3,000 megawatts of hydro capacity in the United States, showing why those assets are so useful to major customers.
Furthermore, Brookfield also has more than 200 gigawatts of potential new projects in its development pipeline.
And it’s already turning some of those opportunities into operating assets. In the first half of 2026, the company brought roughly 3.1 gigawatts of new capacity online. So, it’s no surprise Brookfield continues to be one of the best dividend-growth stocks on the TSX.
Why every Canadian should consider the stock for their TFSA
There’s no question that renewable energy is an industry with years of growth potential. But even beyond the growth potential of clean energy, Brookfield also benefits from the broader need for more electricity, regardless of what’s driving that demand.
Furthermore, not only does Brookfield offer exposure to the growing demand for power and clean energy, but it’s also one of the industry’s leaders.
Building major power projects takes a tonne of money, and Brookfield’s size and access to capital help it pursue opportunities that smaller companies may struggle to take on. It can also invest alongside other Brookfield funds when a particularly large deal comes up.
Additionally, you’re not waiting for those future projects to make the stock worthwhile. That’s because Brookfield currently offers a yield of roughly 5.5% and has increased its distribution by at least 5% every year since going public in 2011.
So, you’re already generating considerable passive income from a business with decades of potential that has shown it can continue to pay you more over time.
That’s why Brookfield Renewable is a stock every Canadian should consider. Investing is all about personal preference, and there aren’t many stocks that are a universal fit for everyone.
But given its size, track record, long-term potential and defensive operations, Brookfield is easily one of the best stocks Canadians can buy and hold in a TFSA for years to come.
