Unlock $10,000 TFSA for Powerful Cash Generation
Tax-Free Savings Accounts (TFSAs) serve as an excellent savings vehicle for Canadians, offering significant advantages twofold: tax-free income and the power of compounding. Starting in 2026, Canadians can contribute up to $7,000 into their TFSA, which opens up various investment opportunities. Below are three strong stocks recognized for generating tax-free income through TFSAs.
Unlock $10,000 TFSA for Powerful Cash Generation
1. Enbridge (TSX:ENB)
Enbridge stands out in the energy infrastructure sector, offering a mix of stability and strong dividends. The company earns the majority of its revenue through its pipeline operations, which provide a consistent income stream. Enbridge is also expanding its renewable energy initiatives and offers a quarterly dividend with a yield of 5.88%.
- Investment Amount: $3,500
- Income Generated: $205.64
- Dividend Growth: Consistent increases over the last 30 years
2. Pembina Pipeline (TSX:PPL)
Pembina Pipeline presents a robust investment option similar to Enbridge, focusing on pipelines across Western Canada. It generates revenue from natural gas and hydrocarbon liquids while offering a reliable quarterly dividend, currently yielding 5.07%.
- Investment Amount: $4,000
- Income Generated: $201.64
- Dividend Strategy: Transitioned from monthly to quarterly payouts in 2023
3. Telus (TSX:T)
Telus is a leading player in the Canadian telecom market, providing various subscription-based services including wireless and internet. As of now, Telus boasts one of the highest dividend yields, at 8.86%, although it has recently paused dividend growth to ensure a sustainable payout.
- Investment Amount: $2,500
- Income Generated: $220.44
- Dividend Characteristics: Semi-annual increases on hold for cost reductions
Total Income Potential
By allocating a total of $10,000 across these three stocks within a TFSA, investors can build a strong portfolio that yields substantial tax-free income. The combined income from these investments totals $627.72 annually, strengthening the case for investing in TFSAs for long-term wealth accumulation.
| Company | Initial Investment | Recent Price | No. of Shares | Dividend Per Share | Total Payout | Frequency |
|---|---|---|---|---|---|---|
| Enbridge | $3,500 | $65.99 | 53 | $3.88 | $205.64 | Quarterly |
| Pembina Pipeline | $4,000 | $56.02 | 71 | $2.84 | $201.64 | Quarterly |
| Telus | $2,500 | $18.88 | 132 | $1.67 | $220.44 | Quarterly |
In conclusion, investing $10,000 in TFSAs with these three companies will yield sustainable, tax-free income while allowing your wealth to grow effectively over time.
