There are plenty of benefits to owning a TFSA. That includes the ability for contributions and reinvested dividends to compound tax-free, as well as any unused TFSA contribution limits that carry over each year.
While that makes the account a great wealth-building tool for investors, that depends on picking the right investments to fuel that growth.
The TFSA contribution limit for 2026 is $7,000. That leaves plenty of options for investors to consider, and that limit is in addition to any unused contribution room from prior years.
There’s no year-end deadline to use that room. Any unused amount carries forward, so investors can take the time to choose investments that fit their goals.
As we move into the last weeks of 2026, here’s where I would use that available space in a TFSA.
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BMO offers a dividend-paying foundation
It would be hard to mention great investments to put in a TFSA without acknowledging Canada’s big bank stocks. And among the big banks, Bank of Montreal (TSX: BMO) is a standout option.
BMO is the oldest of the big banks, with a history of operations and paying out dividends that stretches out nearly two centuries. That’s an incredible amount of time and speaks to the stability of the bank.
Today, BMO’s operations span both Canada and the U.S., providing exposure to consumers and businesses. That helps the bank to generate earnings from lending and wealth management in both markets.
In the most recent quarter, BMO reported adjusted earnings per share of $3.96, reflecting a 22% increase over the same period last year. During that period, provisions for credit losses also declined.
One of the main reasons why investors continue to turn to BMO is for the company’s quarterly dividend. As of the time of writing, BMO offers a dividend with a yield of 2.8%.
That yield, coupled with the bank’s history of paying out dividends and an annual increase streak of over a decade, makes BMO a solid option for investors to consider in a TFSA.
Canadian National pairs essential infrastructure with dividend growth
Another stock worth considering is Canadian National Railway (TSX: CNR). Canadian National operates one of the largest rail networks in North America. That network stretches across Canada and down through the Midwest to the Gulf Region.
This gives Canadian National exposure to three coastlines on the continent, as well as multiple metro markets.
The railway hauls a wide variety of goods across that network. That includes everything from everyday essentials and fuels to automotive components, chemicals and raw materials.
For a would-be competitor to attempt building a competing network would require massive investment and access to land. That gives the railway a unique advantage.
In the most recent quarter, Canadian National reported adjusted diluted earnings per share of $2.16. That reflects an increase of 18% compared with the prior year. Free cash flow for the first nine months of 2026 also rose 25%.
That supports Canadian National’s ability to invest in its operations and still return capital to shareholders.
In terms of dividends, Canadian National offers a dividend yield of 2%. The company also offers investors three decades of consecutive annual increases.
Constellation Software focuses on long-term growth
A third option for investors who want to look beyond dividend income is Constellation Software (TSX: CSU).
Constellation acquires software businesses that serve specialized industries. These businesses provide products that customers rely on to run their operations, helping support ongoing relationships and recurring revenue.
The company’s approach is to acquire and support those businesses for the long term.
While Constellation does offer a dividend, the yield is just 0.17%. Prospective investors should see the stock as a growth pick, not an income producer.
Put your TFSA contribution to work for the long term
The trio of investments above offer ways to invest a TFSA contribution. The best fit ultimately comes down to what else is in the portfolio and if the focus is on growth or income.
In my opinion, one or all of the above are great options to include in any TFSA portfolio.
