We’re now into the last quarter of 2026, and it has been a very odd year. It’s also the perfect time to maximize your TFSA.
The TFSA is one of the best long-term wealth-building tools available to Canadians. Apart from the tax-free appeal that it offers, unused contribution room in the account also carries forward to the next year. For those looking to maximize their TFSA, that’s a huge advantage.
Apart from maximizing contributions, opting for the right investments in the TFSA plays a massive role in long-term growth.
For those investors with a long-term horizon, there are several approaches that could be worth considering. Here’s a look at three different ways.
Source: Getty Images
#1: Put idle investing cash to work with XEI
The first option for investors to consider is the iShares S&P/TSX Composite High Dividend Index ETF (TSX: XEI). This ETF offers investors a simple and easy-to-understand starting point.
That’s because the fund provides exposure to some of the best Canadian dividend-paying stocks on the market. Included in that basket are elements from the financial, utilities, industrial, materials, energy and retail sectors, to name just a few.
The fund then provides investors with a monthly distribution. As of the time of writing, the yield on XEI works out to 3.4%. By way of example, a $15,000 position in XEI will provide an annual income of just over $510.
For long-term investors, that income represents an easy path to growth through reinvestments. At the current price, that $510 income becomes more than a dozen new shares, all without additional money added.
The fund also carries an expense ratio of just 0.22%, which works out to $22 on every $10,000 invested.
#2: Build future income with Canadian National Railway
Another way to maximize your TFSA is to consider how much income an investment could produce years from now.
That’s where the appeal of owning Canadian National Railway (TSX: CNR) comes into play. For those unfamiliar with the stock, Canadian National operates one of the largest railways in North America.
The rail network extends across Canada and down through the U.S. to the Gulf Coast. This gives Canadian National the rare competitive advantage of having access to three coastlines.
The goods that Canadian National hauls can be anything from energy and raw materials to precious metals and wheat. In short, it’s essential, diversified and comprises over $250 billion worth of goods each year.
That helps the railway to offer a respected quarterly dividend. As of the time of writing, Canadian National pays out a yield of 2.2%. That works out to approximately $330 each year on a $15,000 investment.
Again, long-term investors can invest that income to allow compounding to continue.
That’s not all. Canadian National has increased that quarterly dividend annually for three consecutive decades without fail. That includes the most recent increase, which was a 3% uptick for 2026.
#3: Make room for long-term growth with Shopify
Rounding out the three picks to maximize your TFSA is Shopify (TSX: SHOP). Unlike the other two investments mentioned above that offer income-earning potential, Shopify is focused primarily on capital appreciation.
Shopify provides businesses with tools to sell online and in stores. In the second quarter of 2026, revenue grew 34% year over year, while the company reported an 18% free cash flow margin.
Those results are also part of the reason why Shopify has been one of the better-performing stocks on the market in the past decade.
Even better, the business continues to invest in growth. That includes additional bolt-ons to its platform, subscription-based offerings and expanding to new markets.
And perhaps best of all, within a TFSA that growth can continue to compound without any capital gains tax.
Maximize your TFSA with a year-end checkup
The trio of options mentioned above provide different ways to maximize your TFSA for income, growth or ideally, a mix of both.
Before year-end, review any cash sitting uninvested in your TFSA and decide whether it’s reserved for upcoming expenses or available for long-term investing. That can help you identify which approach fits your needs.
