2 Exceptional Stocks for Your $7,000 TFSA Contribution in 2026

Canadian investors will be pleased to know that their Tax-Free Savings Account (TFSA) contribution limit increased by $7,000 in 2026. Canadians who were born in 1991 or earlier can invest a cumulative total of $109,000 today!

Your $7,000 TFSA contribution could become $47,000

$7,000 might not be a lot. However, even a modest amount can become large if it has a strong rate of return and a long period to compound that return. For example, $7,000 that compounds at a 10% average rate of return would be $18,156 after 10 years. That number turns to $29,000 in 15 years and $47,000 in 20 years.

As you extend your time frame, your return curve steepens. It just means that if you have a great quality company, hold it as long as possible. If you are looking for some exceptional stocks for your 2026 TFSA contribution, here are two to consider buying in 2026.

Aritzia: A long runway of growth ahead

Aritzia (TSX:ATZ) is a high-quality pick for a long-term TFSA. Its stock is up 67% in the past year and 314% in the past five years. The company has outperformed just about everyone’s expectations.

Even though Aritzia had a few hard quarters in 2023, it quickly bounced back and righted its operational focus. Today, the company has been delivering exceptional performance. In the third quarter of fiscal 2026, revenue grew by 43% to eclipse $1 billion in quarterly revenue.

Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) soared 52% to $207 million for a 20% EBITDA margin.

Its U.S. expansion strategy has been very successful, with payback on new boutiques faster than 18 months. American demand has been very strong. U.S. revenues now supersede its Canadian revenues. With only 71 U.S. boutiques, it could easily double or triple that amount in the coming years.

That doesn’t even factor in international expansions, so there is no shortage of growth ahead. It does come at a cost. The valuation of this stock has risen considerably in the past few years. However, a recent pullback could make for a decent opportunity to build a position.

Stantec: A perfect long-term TFSA stock

Stantec (TSX:STN) is another quality stock to look at adding to a TFSA. Its stock is up 27% in the past year and 178% in the past five years.

Through smart acquisitions, it has become an engineering, architecture, and consulting leader in Canada. Margins have steadily been rising, and so has its backlog. In its most recent quarter, backlog was 15% to $8.4 billion.

It expects to deliver 18-21% earnings-per-share (EPS) growth in 2025. That is after three consecutive years of double-digit EPS growth. It delivered strong 5.6% organic growth in the quarter.

The engineering and consulting industry remains extremely fragmented. Stantec still has a large market to consolidate. With a solid balance sheet, it has the liquidity to continue that consolidation strategy.

Stantec provides niche, essential services that cater to many global tailwinds like climate change, urbanization, electrification, and infrastructure rejuvenation. This should help continue to drive strong organic growth over the coming years.

Stantec stock is down 7% in the past six months. While it is not the cheapest advisory stock, the pullback could be a nice time to start adding this stock to your long-term TFSA portfolio.

The post 2 Exceptional Stocks for Your $7,000 TFSA Contribution in 2026 appeared first on The Motley Fool Canada.

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* Returns as of January 15th, 2026

More reading

• Momentum Is High, and These 3 Stocks Could Benefit the Most in 2026
• Up 123% in 3 Years, Can Aritzia Stock Continue to Beat the TSX Index in 2026?
• 3 Top Canadian Growth Stocks for February 2026
• Top Canadian Stocks to Buy With $20,000 in 2026
• TFSA Investors: 2 Top Canadian Stocks Worth Buying With $3,500

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