Your $7,000 TFSA contribution could become $47,000
$7,000 may not be much. However, even a modest amount can become large if it has a high return and a long period of time to increase that return. For example, $7,000 compounded at an average rate of return of 10% would be $18,156 after ten years. That number will change to $29,000 in 15 years and to $47,000 in 20 years.
As you lengthen your time frame, your yield curve becomes steeper. It just means that if you have a good quality business, you will keep it for as long as possible. If you’re looking for exceptional stocks to contribute to the TFSA in 2026, here are two to consider buying in 2026.
Aritzia: There is a long road of growth ahead
Aritzia (TSX:ATZ) is a high-quality choice for a long-term TFSA. The stock is up 67% in the past year and 314% in the past five years. The company has exceeded almost everyone’s expectations.
Even though Aritzia had a few tough quarters in 2023, it quickly recovered and regained its operational focus. Today the company delivers exceptional performance. In the third quarter of fiscal 2026, revenue grew 43%, eclipsing quarterly revenue of $1 billion.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 52% to $207 million, with an EBITDA margin of 20%.
The US expansion strategy has been very successful, with the payback period for new boutiques being faster than 18 months. US demand was very strong. US revenues now exceed Canadian revenues. With just 71 U.S. boutiques, it could easily double or triple that number in the coming years.
This doesn’t even take international expansion into account, so there’s no shortage of future growth. There are costs involved. The valuation of this share has risen considerably in recent years. However, a recent pullback could provide a good opportunity to build a position.
Stantec: a perfect TFSA share for the long term
Stantec (TSX:STN) is another quality stock to consider adding to a TFSA. The stock is up 27% in the past year and 178% in the past five years.
Through smart acquisitions, it has become a leader in engineering, architecture and consulting in Canada. Margins have steadily increased, and so has the backlog. In the most recent quarter, the order backlog was up 15% to $8.4 billion.
It expects to achieve earnings per share (EPS) growth of 18 to 21% in 2025. That’s after three consecutive years of double-digit earnings per share growth. It delivered strong organic growth of 5.6% in the quarter.
The engineering and consulting sector remains extremely fragmented. Stantec still has a large market to consolidate. With a solid balance sheet, the country has the liquidity to continue that consolidation strategy.
Stantec provides essential niche services that respond to many global trends, such as climate change, urbanization, electrification and infrastructure rejuvenation. This should contribute to strong organic growth in the coming years.
Stantec shares are down 7% in the past six months. While it’s not the cheapest advisory stock, the pullback could be a great time to add this stock to your long-term TFSA portfolio.
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