After years of underinvestment, Canada is now taking its defence responsibilities and NATO obligations seriously. The Canadian government has committed to increase its defence spending budget to 5% of gross domestic product (GDP) by 2035.

Recently, it announced that it hit its NATO target of 2% of GDP earlier this year. In the 2026/2027 budget, Canada is projected to spend over $50 billion on defence.

All this to say that Canada is on a defence and infrastructure spending boom. This spending will start to trickle through the economy, and several Canadian stocks could be set to win. Here are three top Canadian defence stocks that are poised to win big in 2026 and the years beyond.

Kraken Robotic: A top defence growth stock

Kraken Robotics (TSXV:PNG) should continue to benefit from a rise in global defence spending. It offers subsea sensors, batteries, and robotic systems. Ocean battlefields are being transformed using drones and remotely operated vehicles. Kraken’s components play perfectly into this trend.

Now, that is clearly reflected in the stock performance. PNG stock is up 1,134% in the past five years! However, the business is really starting to chug. Revenues have grown by a 23% compounded annual growth rate (CAGR) in the past three years. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) have compounded by a 33% annual rate.

This Canadian stock has recently pulled back on news of a major acquisition and equity financing. It is by no means a cheap stock. However, if you want exposure to an exciting, growing defence theme, this is one stock to buy.

Firan Technologies: A top small-cap defence stock

Firan Technologies (TSX:FTG) is a small-cap stock to play growth in defence spending. It has a market cap of $506 million. Like Kraken, it has delivered great returns for shareholders. Its stock is up 779% in the past five years.

Firan supplies essential (but boring) aerospace components like cockpit assemblies/panels, circuit boards, sensors, and antennas. In fact, it supplied switch interface panels on the NASA Artemis spacecraft.

The aerospace supplier has a $60 million backlog that should support mid-teens growth in 2026. With a strong balance sheet, acquisitions could be a booster to that forecast.

MDA: A top space stock

MDA Space (TSX:MDA) is one of the only stocks you will find in Canada with exposure to the space economy. With a market cap of $6 billion, it is a global provider of satellites, space robotics, and geointelligence services.

Space is an increasingly relevant sector of defence. Humans are reliant on satellites for communication, data, and earth tracking. Yet, it could become a battlefield in the future. MDA has the expertise to provide solutions in this area.

MDA has a $4 billion backlog. While it is only projecting 10% revenue growth in 2026, that comes after a year where revenues grew 51%. This stock can be very volatile, so it is best to add it on a pullback.

The Foolish takeaway

Compared to Europe and the U.S., Canadian stocks provide limited exposure to the defence sector. However, the few that do exist could enjoy outsized performance in the years to come. Some other defence stocks to contemplate include Calian Group, Exchange Income Corp., Magellan Aerospace, and CAE.

The post Canada’s Defence Spending Boom: 3 Stocks Poised to Win Big appeared first on The Motley Fool Canada.

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Fool contributor Robin Brown has positions in Calian Group, Firan Technology Group, and MDA Space. The Motley Fool has positions in and recommends Firan Technology Group and Kraken Robotics. The Motley Fool recommends Calian Group and MDA Space. The Motley Fool has a disclosure policy.

The TFSA (Tax-Free Savings Account) contribution limit increased by $7,000 in 2026. While it doesn’t seem like much, it is another opportunity to compound some capital completely tax-free.

Inside the TFSA, you don’t have to pay a cut to the government. All investment income (capital gains, dividends, and interest) stays with you. You can take all that income and reinvest it again and again. It doesn’t start as much, but it can become a substantial sum.

In fact, if you could invest your $7,000 of TFSA cash at a 15% average rate of return for 20 years, your investment could increase by 10 times to over $70,000. If you could increase your rate of return to 26%, you could hit a $70,000 valuation in half that time.

While these are pretty high rates of return, they are not unheard of. That is especially true when you are looking for small- and mid-cap stocks.

Hammond Power: A 10X in fewer than four years

Hammond Power Solutions (TSX:HPS.A) is a particularly impressive example. This would have been a great TFSA stock. Just under 3.5 years ago, this stock was trading for $25.36. Today, it is trading for $279! That would have turned $7,000 into over $70,000 today!

This is a bit of a unicorn. However, if you find the combination of a good company in a good sector hitting a mega tailwind, you can see massive, fast returns.

Generally, Hammond is a very boring business. It manufactures a mix of electrical transformers and components. However, it has steadily grown, expanded its product line, and enhanced its manufacturing capacity.

That was just in time for the massive build-out of data centres across North America. This has substantially bolstered Hammond’s backlog this year. With a supply deficit, it should continue to enjoy very strong demand in the coming years.

Hammond used to trade for a low single-digit price-to-earnings (P/E) multiple. After becoming somewhat of a hype stock today, it trades with a P/E multiple of 46!

Groupe Dynamite: Swinging for the fence

Groupe Dynamite (TSX:GRGD) is another example of a mid-cap stock that became a large-cap stock very quickly. Group Dynamite completed its initial public offering (IPO) in November 2024, shortly after President Trump took office.

It wasn’t long after that that President Trump imposed broad tariffs that impacted Canadian clothing retailers like Group Dynamite. The stock collapsed 49%!

However, shrewd investors would have seen that this is a great business that was getting discounted unjustly. Investors could have picked it up with a P/E ratio of only nine in April 2025.

Shortly thereafter, the company proved that it could overcome tariff concerns by delivering three quarters of consecutive revenue growth of over 35%. Expansion of its brand into the United States has proved very successful. It just announced its expansion into the U.K. market. The company generates so much cash that it paid out a special $2.30 per share dividend this year.

Groupe Dynamite stock is up 567% in the past year. If you held this stock in your TFSA, it would have turned a $7,000 investment into $39,830 today. In a year, you would be more than halfway to your goal of $70,000.

While it is not likely to keep delivering those types of returns year over year, the company still has a long growth runway ahead. There is still a good chance that TFSA shareholders could drastically multiply their money in the years ahead.

The Foolish takeaway

The TFSA is the perfect place to swing for a home run. Paying no tax means you get to keep all your big gains. Look for good businesses trading at attractive valuations with tailwinds that the market doesn’t see yet. When these types of stocks hit the bat, they can really fly out of the park.

The post How to Turn Your 2026 TFSA Contribution Into $70,000 or More appeared first on The Motley Fool Canada.

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Fool contributor Robin Brown has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Groupe Dynamite and Hammond Power Solutions. The Motley Fool has a disclosure policy.

We are only five months into 2026, but there has already been plenty of action for stocks. The market and geopolitical volatility makes it challenging to know how to position one’s portfolio.

The best most investors can do is to diversify your portfolio across sector, asset class, and even geography. If I had $10,000 to invest right now, I would probably position it equally across these four stocks.

A top dividend stock

AltaGas (TSX:ALA) is one way to win from the surge in energy prices, but without the same volatility (or commodity risk) as an energy stock.

Fifty-five percent of AltaGas’ business is from its regulated natural gas utilities in the U.S. It’s a steady business that chugs out cash to shareholders. It also happens to be growing its rate base by a high single-digit rate (faster than most other utility peers).

The interesting factor comes from its midstream business. With LNG and LPG shipments disrupted at the Strait of Hormuz, demand for Canadian propane and butane is rising. AltaGas operates several LPG export terminals. It also has expansions in progress. Rising demand means higher volumes and better pricing ahead.

Overall, the setup for AltaGas looks attractive for a relatively low-risk, steady-as-it-goes business. It yields 2.6% and has an attractive mid-single-digit annual dividend growth profile.

A top growth-at-a-fair price stock

Calian Group (TSX:CGY) is another stock to load up on right now. With Canada widely increasing its defence and military spend, Calian should be exceptionally well-positioned in the coming years. It is a key contractor to the military for training, health services, and specialized technologies.  

Calian just announced $200 million in new defence contracts in the second quarter. It’s sitting with a $1.4 billion backlog today. It is targeting mid-teens growth this year.

Despite rising 28% this year, this stock trades with a price-to-earnings ratio under 16. Given it could grow by a similar rate, it still looks like a reasonable bargain now.

A top software company

Constellation Software (TSX:CSU) has quickly fallen from investors graces in the past year. Its stock is down 51% in that time. You might think there is something wrong with its business.  

Yet, this is a company that grew revenues by 15% and cash from operations by 24% in 2026. It doesn’t seem like anything is broken.

While AI disruption is a concern to monitor, one must remember that Constellation is an entrenched technology partner across thousands of different businesses and industries. If anyone can use AI to help customers improve operations, it is them.

It may take some time for this stock to rebound. However, you can buy it at a multi-year low valuation right now.

A top American stock

Visa (NYSE:V) is another stock that declined on fears of AI disruption. Yet, it just posted a quarter with 17% revenue growth and 20% normalized earnings per share growth!

This company is persistently a mid-teens grower, and it looks like it will deliver that again in 2026. It forms the backbone of efficient commerce around the world. The best part is Visa keeps innovating and making its network more valuable to participants. It creates a great flywheel effect.

Visa is trading near its lowest price-to-earnings ratio in 10 years. It’s an opportune time to add this high-quality business to your portfolio.

The post The Stocks I’d Most Want to Own If I Had $10,000 to Invest Today appeared first on The Motley Fool Canada.

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Fool contributor Robin Brown has positions in Calian Group, Constellation Software, and Visa. The Motley Fool recommends Calian Group, Constellation Software, and Visa. The Motley Fool has a disclosure policy.

Canadian oil stocks used to be a filthy asset class. However, since 2020, these stocks have steadily been gaining popularity with both retail and institutional investors.

In the past five years, the sector has significantly consolidated and outperformed. The best producers drastically reduced debt and cleaned up their balance sheets. Likewise, they focused on the most economic assets and drilling opportunities.

As result, Canadian oil stocks are lean, cash flow machines. Since the Iran war pushed oil prices skyward, Canadian oil stocks are set to enjoy a major windfall. Suncor Enbridge (TSX:SU), Enbridge (TSX:ENB), and Canadian Natural Resources (TSX:CNQ) are some of Canada’s best known energy stocks. Here’s why each has its investment merits and why you might want to prefer one over the other.

Suncor Energy: A top integrated oil stock

With a market cap of $104 billion, Suncor Energy is Canada’s top integrated oil stock. It produces 855,000 barrels of oil per day and refines 466,000 barrels of oil per day. It also has a large retail distribution network through 1,640 Petro-Canada retail locations and 320 commercial Cardlock locations.

Suncor’s stock lagged for several years due to underperforming operations and safety issues. However, its new management has largely cleaned up the business.

With a strong balance sheet today and a mix of long-life assets (25 years of reserves), Suncor has committed to returning 100% of its excess cash flows to shareholders. It has also committed to growing its dividend by 3-5% per year. It yields 2.73% today.

This is a good stock if you want a diversified mix of assets that generate strong cash flows. While this oil stock has a lower yield, capital returns will come as it steadily retires its share count.

Enbridge: A top pipeline stock

Enbridge is Canada’s top energy infrastructure stock with a market cap of $156 billion. 30% of oil produced in North America is transported through Enbridge’s pipelines. 20% of the natural gas utilized on the continent go through its network.

It just speaks to how essential this company is to the North American economy. Unlike Suncor, Enbridge is much less exposed to the price of oil or gas. It operates a tolling business. 98% of its business is contracted or regulated.

Enbridge does carry a lot of debt, so it can be sensitive to rising interest rates. Its stock yields 5.4% and management has an eye to keep growing that dividend by a low singled digit annualized rate.

Canadian Natural Resources: A top oil stock

With a market cap of $128 billion, Canadian Natural Resources is Canada’s largest energy producer. This oil stock is solely focused on what it good at: energy production. It produces over 1.6 billion barrels of oil and natural gas per day!

This is one of Canada’s best run companies. It can sustain its dividend and operations, even if energy prices dropped to the mid-40’s. It has decades of energy reserves on hand.

With oil trading over $100 per barrel, it should be set to see a massive windfall. In the past, it has been known to pay very nice special dividends when the price of oil is elevated. It yields 4% and has a 26-year history growing that dividend.

You buy this oil stock if you want to own the best of the best for operations, shareholder friendliness, and dividend growth. Its valuation is elevated, but sometimes you get what you pay for.

The post Suncor, Enbridge, or Canadian Natural — Which Oil Stock Fits Your Portfolio Best? appeared first on The Motley Fool Canada.

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Fool contributor Robin Brown has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources and Enbridge. The Motley Fool has a disclosure policy.

Canada is getting serious about stimulating its economic growth. It is investing billions of dollars in crucial infrastructure projects. Likewise, it is fast-tracking projects that are considered of national importance. That should play favourably for several domestic Canadian stocks. These three stocks are some of my favourites that should benefit from rising infrastructure spending in the coming years.

WSP Global stock

With a market cap of $30 billion, WSP Global (TSX:WSP) is one of the largest and most diversified engineering, design, and advisory firms in the world. It has acquired businesses around the world that have both expanded its expertise and geographic distribution.

This allows WSP to provide end-to-end solutions across major infrastructure projects. It is taking a greater share of broader projects, which is also helping its margins increase.

WSP’s Canadian backlog grew 13.5% in 2025. In fact, this was one of its strongest performing regions. Last year, it grew adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) by 17.2%. It is targeting at least 17% adjusted EBITDA growth in 2026.

Its stock is down 9% this year. WSP’s valuation is at its lowest in five years. If you want exposure to the Canadian and global infrastructure boom, WSP is a perfect stock to add now.

Pembina Pipeline

Pembina Pipeline (TSX:PPL) is a leading provider of energy infrastructure in Western Canada. Canadian energy is increasingly becoming important as energy security becomes scarcer in places like the Middle East.

Pembina provides all the tools an energy producer needs to get their gas and liquids to market. This included everything from collection pipelines to midstream facilities to egress pipelines to storage and export terminals.

Pembina is constructing one of only a few LNG terminals that have been approved to date. It has already seen very strong contracting demand for that facility. It is very likely to pursue additional phases after it hits completion in 2028. Recent government fast-tracking of other facilities shows that LNG export is now a national priority.

Pembina is also exploring opportunities to power data centres in central Alberta. Alberta has the perfect climate for data centres and ample natural gas to power them. This could be another infrastructure opportunity in the decades ahead.

Right now, Pembina is targeting 5-7% annual growth all the way to 2030. However, with a more open regulatory environment, it may be able to grow its infrastructure network even faster than previously.

Toromont Industries stock

Toromont Industries (TSX:TIH) could be another beneficiary of Canada’s infrastructure boom. It is somewhat agnostic to what sector is seeing infrastructure because each of them needs yellow iron and heavy-duty construction equipment regardless.

Today, Toromont has a $1.5 billion backlog. That is likely to keep growing as more projects are announced and construction commences. Toromont is in a strong position because metal pricing is high, so miners have the capital to update equipment. Likewise, several major resource projects were considered of national importance.

It will take some time for capital to move from approvals to project construction. As a result, the nation-building activity will likely be more of a long-term tailwind than a near-term one.

Regardless, this is an exceptionally well-managed company. Toromont consistently delivers strong returns for shareholders. It is not a cheap stock today, so you do want to be a bit choosy when you enter a position. However, if you want a strong business (that could get stronger), it’s an interesting stock to look at.

The post 3 Stocks for Canada’s Infrastructure Spending Boom appeared first on The Motley Fool Canada.

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Fool contributor Robin Brown has positions in WSP Global. The Motley Fool recommends Pembina Pipeline and WSP Global. The Motley Fool has a disclosure policy.

It is hard to be a long-term investor when the Canadian stock market is so volatile. Yet, long-term thinking might be just the medicine Canadian investors need.

When you are a long-term investor, you don’t need to follow the day-to-day market noise. You just need to pick good stocks, hold them in your portfolio, and check up on them a few times a year. A volatile market can make for bad emotional investment decision-making.

Investing long-term can help you avoid this. If I had a five-year investment horizon, here are five stocks I’d be confident tucking away and holding through the volatility.

WSP Global stock

WSP Global (TSX:WSP) has been a long-term Canadian compounder. Even after a 10% pullback this year, its stock is up 450% in the past 10 years.

WSP is one of the largest engineering, design, and advisory firms in the world. Massive tailwinds like electrification, infrastructure renewal, urbanization, and AI are all propelling demand for WSP’s services.

It is targeting mid-teens earnings per share growth in 2026. Its valuation is quite attractive after the pullback.

Descartes Systems

Another stock that is down today, but should be a good buy long term is Descartes Systems Group (TSX:DSG). It is down 15% this year, but up 310% in the past 10 years.

Descartes is a major provider in logistics and supply chain management solutions around the world. The company has high recurring revenues, strong profit margins, and a strong cash-rich balance sheet.

It is growing both organically and by acquisition. With software valuations depressed, it is likely to be very opportunistic in the coming year. DSG stock is trading at its lowest valuation in 10 years.

Firan Technology

If you want a small cap stock with a long growth horizon, Firan Technology (TSX:FTG) fits the bill. Unlike the stocks above, this stock has been riding strong momentum. It is up 71% this year and 781% in the past five years.

Firan produces essential circuit boards, cockpit components, and sensors for airplanes. It has exposure to both defence and commercial sectors. With defence spending rising, it continues to see contract wins.

This stock is not cheap like it was a year ago. However, it could still have a substantial ride upward in the five years ahead.

Pembina Pipeline

If you are more inclined to dividend stocks, Pembina Pipeline (TSX:PPL) looks well set. Its stock is up 11.7% this year and 59% in the past five years.

Pembina has a diversified energy infrastructure network across Western Canada. With conflicts in the Middle East, Canadian energy will become more and more important. Pembina has the network to get it to market. It believes it can grow 5–7% a year all the way to 2030.

This isn’t the fastest-growing stock. However, it is stable, and it has a growing 4.8% dividend yield.

Fortis stock

Like Pembina, Fortis (TSX:FTS) might not be the fastest-growing stock. However, in five years, I can bet that its stock will be higher and so will its dividend. This stock is up 15% this year and 40% in the past five years. It currently yields 3.3%.

Fortis is a leading regulated utility provider across North America. Its business is consistent and predictable. So are its growth plans. It is targeting 7% annual rate base growth over the coming five years.

That should support single-digit annual dividend growth over that time. It has a 52-year dividend growth track record backing that, so investors have a great chance of income growth ahead.

The post 5 Canadian Stocks Built to Buy and Hold for the Next 5 Years appeared first on The Motley Fool Canada.

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Fool contributor Robin Brown has positions in Descartes Systems Group, Firan Technology Group, and WSP Global. The Motley Fool has positions in and recommends Firan Technology Group. The Motley Fool recommends Descartes Systems Group, Fortis, Pembina Pipeline, and WSP Global. The Motley Fool has a disclosure policy.

If one word described the stock market in 2026, it would be volatile. A mix of geopolitical, economic, and business factors have all contributed to plenty of excitement for the year. Yet, the S&P/TSX Composite Index has been resilient. It is up 6.6% since the start of the year and 39.7% in the past 52 weeks.

With the Canadian market up, it can be hard to find bargains. However, there is sure to be more volatility in the year. Broader market dips could present opportunities to buy good quality stocks at better prices. If another market dip were to come our way, these are two stocks I would be adding to.

Aritzia: A top-performing TSX stock to add on a pullback

Aritzia (TSX:ATZ) has been an incredible performer. Its stock is up 20% this year and 354% in the past five years. However, it hasn’t come without volatility. It has had three drawdowns of over 40% in the past five years.

Right now, Aritzia stock is trading close to an all-time high and it isn’t cheap. However, any decent correction could present a nice buying opportunity. The company has been enjoying strong momentum as it continues to build out its boutique network in the U.S. Right now, it has 70 stores. However, it believes it could more than double its U.S. store count in the coming years.

The great thing is that as it plants new boutiques, e-commerce sales grow in tandem. The company has a really strong omni-channel platform.

Aritzia has not made a move into international markets yet. However, a very similar Canadian retail peer, Groupe Dynamite, just entered the U.K. market and its merchandise has been very well received.

The point is that the company has substantial growth opportunities ahead. However, at 37 times earnings today, a lot of that growth is factored into the valuation. You may want to be patient for a pullback to buy into the stock.

Calian Group: A small cap with big future potential

Calian Group (TSX:CGY) is not nearly as well-known of a stock. However, it has had a nice run up in 2026. It is up 33% this year and 62% in the past 52 weeks. With a market cap of $837 million, it is still considered a small cap stock.

After a few tough years, Calian looks to be exceptionally well positioned going forward. It provides healthcare, training, and satcom products and services to the Canadian military and NATO. Over 50% of its revenue is derived from defence-related services.

However, that is expected to grow. Canada is investing heavily to grow and update its military. Calian will play a major part in training and supporting these expanded defence capacities.

Calian is projecting 15% growth in 2026. It has a $1.4 billion backlog to support that growth. Calian has a record of regular acquisitions, so that could bolster those targets even more.

At only 17 times earnings, I would hardly say this stock is expensive. Calian pays a 1.6% yield. If it pulled back on a broader market drawdown, I would be adding.

The post 2 TSX Stocks Worth Picking Up the Next Time the Market Dips appeared first on The Motley Fool Canada.

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Fool contributor Robin Brown has positions in Aritzia and Calian Group. The Motley Fool has positions in and recommends Aritzia and Groupe Dynamite. The Motley Fool recommends Calian Group. The Motley Fool has a disclosure policy.

Several Canadian stocks are primed to benefit from Canada’s efforts to bolster infrastructure and increase independence from our neighbors to the south. The government has pledged $51 billion to improve and expand infrastructure across communities in Canada. That is on top of the $63 billion that Canada plans to spend on military expenditures in 2026.

All this spending will trickle down to some top stocks. Here are some of my favourite Canadian stocks set to win from Canada’s infrastructure spending boom.

Stantec: A top engineering stock

Stantec (TSX:STN) is a Canadian leader in engineering, architecture, and environmental services. Mining, energy, and military are all sectors in vogue. Stantec has strong exposure to these segments. It already has won several contracts to help design and upgrade Canadian military facilities across Canada.

Stantec has an $8.6 billion backlog (which rose almost 10% in 2025). It expects mid-single-digit organic growth in 2026. Likewise, it expects adjusted earnings per share to rise by 15% to 18% over the year.

Stantec stock is down 3.6% this year. However, its stock is up 114% in the past five years. Over that time, it has grown earnings per share by a 25% compounded annual growth rate. With a smart acquisition strategy, this has been a good compounder. With favourable tailwinds, the pullback could be a nice time to add this stock to your portfolio.

Exchange Income Corp: A top stock for northern exposure

Exchange Income Corporation (TSX:EIF) is not a super well known company to most consumers. However, it operates one of the largest airline networks that caters specifically to Canada’s northern regions. Its acquisition of Canadian North really cemented its dominant and essential position.

Canada will be investing substantially in its northern regions over the coming years. With climate change opening new Arctic shipping routes, Canada must build a stronger northern defence network. Workers and new residents will use Exchange’s airlines to get there.

Exchange is also an important provider of surveillance-equipped airplanes around the world. Broader defence spending could bring new projects and contracts in this area.

Exchange also has a large environmental matting business. Major infrastructure investments tend to require a lot of matting and access solutions, so that could a long-term tailwind.  

Overall, this company has multiple tailwinds that are driving double digit annual growth. This stock yields 2.65% today, so investors get a nice mix of growth and income from this stock.

Bird Construction: A contractor with a margin growth story

A final stock set to benefit from a Canadian infrastructure boom is Bird Construction (TSX:BDT). This company has traditionally been known as construction contractor. However, it is transforming into a leading Canadian infrastructure firm. The market is starting to take notice. Its stock is up 61% this year.

The company has a record backlog over $5.1 billion today and a $6 billion pending backlog. Bird has pivoted to a focus on higher margin, often recurring revenue projects. Acquisitions have expanded its services platform, so it is able to take more share (and more margins) from a new project.

With expertise across many major infrastructure tailwinds (nuclear, data centres, healthcare, and transport), it should continue to win a strong share of Canadian infrastructure projects.

This can by a cyclical business, but the company is moving to become more resilient and predictable. If the volatility doesn’t worry you, it’s a reasonably priced stock with more upside if management can execute its strategy.

The post 3 Stocks for Canada’s Infrastructure Spending Boom appeared first on The Motley Fool Canada.

More reading

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Fool contributor Robin Brown has positions in Stantec. The Motley Fool recommends Stantec. The Motley Fool has a disclosure policy.

It is never too late to start contributing and investing in your TFSA (Tax-Free Savings Account). Certainly, the sooner the better, but who doesn’t benefit from earning income completely tax-free?

The TFSA is flexible, so it can be used for long-term retirement savings, for a cottage downpayment, or to help your kids through college. The key is to simply use the account and maximize the tax-free benefit.

Right now, the average TFSA fair market value for someone between the ages of 50 and 54 is $30,190. It is good to see that many 50-year-old Canadians are using their TFSA, as that average is up nearly $10,000 from peers in their 40s.

However, the average 50-year-old can contribute a combined total of as much as $109,000. Many Canadians are unfortunately not using the TFSA as much as they could.

It’s never too late to invest in your TFSA

The good news it is never too late. Even a $30,190 TFSA compounded tax-free at a market rate of 9% could be worth as much as $109,000 by retirement (at age 65). However, if you maxed out your TFSA contribution today ($109,000) at the same investment rate, your TFSA could be worth as much as $397,000 by retirement!

If those investments were made outside of a TFSA, you could owe thousands of tax dollars when those investments are sold. Use the TFSA when investing, even if you can’t hit the average or the maximum.

Just take a bit of your salary per month and get it working tax-free for you. Smart investments and tax-free compounding can make a faster route to retirement. If you are looking for some smart investments for your TFSA, Pembina Pipeline (TSX:PPL) is a nice income option and Shopify (TSX:SHOP) is an interesting growth stock.

Pembina: A quality stock for income and growth

Pembina hits the mark from a return profile. In the past 10 years, its stock has compounded by a 4.5% compounded annual growth rate (CAGR). However, when you add in its 4.9% dividend, you get closer to a 9% average annual return.

Fortunately, future returns could be even better. This energy infrastructure stock should benefit from elevated energy prices due to the conflict in the Middle East. It could translate into better marketing pricing and more volumes through its network.

In the long-term, Pembina has growth from its LNG terminal coming into service (2028), data centre power opportunities (2030), and expansion of its collection and egress pipelines. It is targeting 5–7% annualized growth all the way to 2030. For income and modest growth, this is an attractive stock.

Shopify: A top Canadian growth stock for a TFSA

Shopify has been one of Canada’s best performing tech stocks. Even though its stock is down 19% this year, it is up 4,049% (45% CAGR) in the past 10 years.

Shopify is down due to fears about AI threats. While it is a concern to monitor, Shopify is already starting to use its own AI and agentic applications to help its merchants adapt to modern commerce. Its past two quarterly results have been exceptional. The company is starting to generate considerable free cash flow.

While it may not grow as fast as in the past, it still has a substantial runway ahead. You have to be comfortable with its elevated valuation. But if you believe in its growth story, this is a strong TFSA stock for the next 15 years.

The post How Much Canadians Typically Have in a TFSA by Age 50 appeared first on The Motley Fool Canada.

More reading

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Fool contributor Robin Brown has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Pembina Pipeline. The Motley Fool has a disclosure policy.

Aritzia (TSX:ATZ) has been one of Canada’s best growth stocks over the past five years. It is up 357% for a 35% compounded annual growth rate (CAGR). Now, it hasn’t come without volatility.

Aritzia stock is volatile, but it has delivered great long-term returns

It has had three drawdowns of 40% or more during that time. Smart investors would have seen those as great buying opportunities. However, you would have needed some guts and gumption to hold through those pullbacks.

Strong brand power gaining traction globally

Aritzia’s “Everyday Luxury” brands have been resounding with young and middle-aged women. It owns its own brands, and each resounds with its own market. Aritzia has largely penetrated the Canadian market. However, it has a long way to go in America. That has been a massive factor in its growth story.

It has 68 boutiques in Canada and 71 boutiques in the U.S. The great thing is that as it adds new boutiques in the U.S., it tends to enjoy a surge in e-commerce when it enters a new region. In fact, since 2020, e-commerce sales have surged by a 33% CAGR. E-commerce now makes up 35% of total sales.

Results have been exceptional

Since 2020, Aritzia has grown revenues by a 23% CAGR. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) has risen by a 19% CAGR.

In its recent fiscal third quarter of 2026, net revenues eclipsed $1 billion of sales, for 34% revenue growth. Profit margins improved 60 basis points and adjusted EBTDA margins hit 20%.

The company continues to target 33% revenue growth for the whole fiscal 2026 year. However, analysts believe there are chances Aritzia could beat these estimates given that channel checks are exceeding expectations for the fourth quarter of 2026. The company is expected to report earnings on April 30, 2026, so investors will want to watch closely.

The company is undoubtably on a roll. Its merchandise and brand are resounding with its customer base. New store openings are exceeding expectations. In fact, the company continues to see store paybacks in less than 18 months, which is a very strong result.

Aritzia has a long growth trajectory, but how much should you pay for that?

Aritzia still has ample opportunities to expand. It believes it could easily have 150 or more American boutiques in the coming years. That is not even contemplating international expansion where it could have several multiples of that across Europe and Asia.

With $620 million of cash on the balance sheet and strong cash generation, it certainly has the dry powder to fund these growth plans. Management has proved to be thoughtfully prudent about growth. They don’t expand faster than they can manage effectively.

Despite its great growth trajectory, investors do need to be cognizant of risks. At $139.50, it is trading just off all-time highs. Aritzia is trading with a forward price-to-earnings ratio of 38 and an enterprise value-to-EBITDA ratio of 18.5.

These are elevated valuation multiples, and the market is factoring in strong execution for the fourth quarter. Any change in the U.S. tariff stance or a rapid decline in the economy could send this stock downward.

As noted above, Aritzia’s stock can be volatile. An inevitable pullback could provide a better opportunity to start or add to a position in this great Canadian growth stock.  

The post This Growth Stock Continues to Crush the Market appeared first on The Motley Fool Canada.

More reading

• The Canadian Stocks I’d Focus on for Growth Potential in 2026
• 2 Canadian Stocks You Can Buy Today and Hold for 5 Years
• The 3 TSX Stocks I’d Be Most Eager to Buy at This Moment
• 3 Canadian Stocks With the Potential to Triple in Value Within 5 Years
• 3 Canadian Stocks to Buy Before the Next Earnings Surprise

Fool contributor Robin Brown has positions in Aritzia. The Motley Fool has positions in and recommends Aritzia. The Motley Fool has a disclosure policy.