Do you have $5,000 to invest? Put it to work in 3 TFSA-worthy blue chips (and then do nothing for decades)

A tax-free savings account (TFSA) is, I think, a unique cheat code for Canadian investors that is often underutilized. Investors can put $7,000 to work in this account (they’re still eligible this year), which can grow tax-free for retirement. These are after-tax funds (so investors don’t get a tax benefit like they would, for example, if they contributed to an RRSP). However, the fact that this account’s growth is not taxed at the time the funds are withdrawn is beneficial for those looking to create meaningful passive income streams in retirement.

With that in mind, here are three dividend stocks that offer the right kind of capital appreciation that deserve a portfolio position in most investors’ TFSAs right now.

Toronto Dominion Bank

For investors looking not only for relatively stable and consistent long-term growth, but also for a relatively defensive stance in the financial sector, Toronto Dominion Bank (TSX:TD) is one of my top picks.

Of the largest Canadian banks, I’d say TD has one of the best long-term growth profiles around. Looking at the company’s five-year chart above, it’s clear that much of the company’s growth over this period has actually occurred in the past year.

With a whopping 67% year-to-date return at the time of writing, 2025 will likely go down as one of this bank’s best years in a long time. Rising sales and profits, coupled with improved operational efficiency and a steepening yield curve (which boosts net profit margins), have led to such a rise.

I think there could be more to come in 2026, and this Canadian Big Five bank with a 3.4% yield remains a long-term asset to build and hold over time.

Pembina Pipeline

I think long-term investors can own one of the best Canadian energy infrastructure companies here: Pembina Pipeline (TSX:PPL) is seeing much improved investor sentiment, at least over the last five years.

Now, the pipeline giant’s performance over the course of the past year hasn’t been great. And as with my next pick, I think this will likely change over the course of the next decade.

But despite being down 3.5% year-over-year at the time of writing, this stock’s yield of almost 6% more than offsets this deterioration. I’m looking for capital growth in the high single digits to low double digits, with dividend growth delivering an additional 6%+ return for investors over time. That’s the kind of solid composite investors want in their TFSA, and makes this a top pick of mine heading into what could be an uncertain year.

Restaurant brands

One of the Canadian stocks I’m most bullish on right now is the parent company of Tim Hortons Restaurant brands (TSX:QSR).

Shares of the quick-service restaurant giant have done well this year, but have underperformed my expectations for where QSR stock would end the year. Still, many investors would be happy with a return of roughly 4% this year. That’s because, combined with this company’s 3.6% dividend yield, that’s a yield of almost 8%. If Restaurant Brands can do that for many years in a row, this is the kind of investment profile that investors can get behind.

Now I think much higher long-term capital growth is probably justified. Structural trends related to the downturn in the hospitality industry, as well as increasingly defensive portfolio orientations, should bode well for Restaurant Brands over the next decade compared to many other top stocks in the market. That’s my base case, and I’m sticking with it.