Retire Richer: 2 Canadian Stocks for a TFSA Built to Last

Today, many Canadians no longer have access to the kind of pension plans previous generations relied on. As a result, a Tax-Free Savings Account (TFSA) has become an increasingly important tool for creating future financial security.

That doesn’t mean investors need to take excessive risks by investing their hard-earned money in just high-growth stocks. In fact, some of the strongest long-term results for retirement planning can come from owning businesses that generate dependable cash flow and steadily return capital to shareholders. Companies with those qualities could help TFSA investors create a portfolio that becomes stronger with time rather than being dependent on short-term market moves.

In this article, I’ll highlight two Canadian stocks that could be excellent additions to your retirement-focused TFSA portfolio.

A pipeline stock with durable cash flow

The first Canadian stock that could fit well in a retirement-focused TFSA is Pembina Pipeline (TSX:PPL), thanks to its consistent cash generation. The company owns strategically located energy infrastructure across pipelines, facilities, logistics, and export terminals.

Over the last year, PPL stock has climbed around 32% to currently trade at $66.98 per share with a market cap of about $39 billion. It also offers a dividend yield of 4.5% at the current market price, with quarterly payouts.

In the quarter ended in March 2026, Pembina posted earnings of $498 million and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $1.1 billion. The company’s adjusted cash flow from operating activities came in at $790 million for the quarter, giving it room to keep funding dividends and growth projects.

Interestingly, Pembina also recently raised its quarterly dividend by 3.5%, which is the kind of signal long-term income investors like to see. Its 2026 adjusted EBITDA guidance now sits between $4.35 billion and $4.55 billion, backed by stronger commodity prices in its marketing business.

Moreover, its recently completed projects, including the Wapiti Expansion and K3 Cogeneration Facility, should also support future cash flow. For TFSA investors, that mix of income and infrastructure-backed growth makes Pembina stock worth considering right now.

A financial stock with retirement momentum

Another stock that could make sense in a retirement-focused TFSA is Great-West Lifeco (TSX:GWO). The Winnipeg-based financial services holding firm operates through Canada Life, Empower, and Irish Life, giving it exposure to insurance, retirement, wealth, and workplace benefits markets.

The company’s solid fundamentals have helped its shares surge nearly 73% over the last year. As a result, GWO stock now trades at $87.63 per share with a market cap of roughly $79 billion. At this market price, it still offers a 3% dividend yield.

In the first quarter, Great-West showed base earnings of $1.2 billion, up 20% year-over-year (YoY), while its net earnings climbed 39% YoY to $1.2 billion. The company’s base return on equity reached 19.1% last quarter with the help of double-digit earnings growth across all segments, solid cash generation, and ongoing share repurchases.

Great-West’s business is tied to long-term demographic trends, including retirement planning, workplace benefits, and demand for insurance protection. More importantly, it’s pushing deeper into higher-growth, capital-efficient businesses. With total client assets of $3.3 trillion and strong momentum across retirement and wealth operations, it looks well-positioned to keep compounding over time.

The post Retire Richer: 2 Canadian Stocks for a TFSA Built to Last appeared first on The Motley Fool Canada.

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More reading

• 3 TSX Dividend Stocks I’d Buy for Decades of Passive Income
• 3 Canadian Stocks Primed With Potential for Generational Wealth
• The Best (and Easiest!) Way to Turn a $21,000 TFSA Into Consistent Cash Flow
• 2 Dividend Stocks Every Canadian Should Consider Owning
• Got $25,000? Transform a TFSA Into a Cash-Gushing Machine

Fool contributor Jitendra Parashar has positions in Pembina Pipeline. The Motley Fool recommends Pembina Pipeline. The Motley Fool has a disclosure policy.