Protect Your Tax-Free Income: 2 TFSA Stocks to Buy Post-Bloom

The contribution limit for the Tax Free Savings Account (TFSA) will increase to $7,000 in the new year. Canadian investors have a new opportunity to put more money to work starting in January 2026. If you plan to invest in stocks, there is a way to protect your tax-free income from market fluctuations despite the expected continuation of the TSX’s bull run.

Instead of chasing momentum, a smart approach is to invest in TFSA-worthy stocks. Enbridge (TSX:ENB) and Fortis (TSX:FTS) stand out as reliable options that can help you grow your profits steadily and secure them after the current market boom.

Defensive income and long-term stability

Enbridge is the TSX’s fifth-largest company by market capitalization. This $141.6 billion energy giant is a great fit for TFSA investors. The regulated pipeline and utilities generate stable, predictable revenues and sustainable cash flows. At $64.88 per share, the dividend yield is 5.98%.

Note that ENB has increased dividends for 31 consecutive years. This streak makes it a resilient choice if your goal is to protect tax-free income. Another notable achievement is meeting the financial guidelines for 19 consecutive years. In addition to the service costs and contracted cash flows (98%), the EBITDA from assets (80%) has built-in inflation protection.

According to President and CEO, Greg Ebel, Enbridge is the only company with a major energy infrastructure and a significant footprint in North America. It can supply gas, liquids and renewable energy to customers in Canada and the United States. He added that Enbridge will benefit from growing energy demand in the region, including new markets.

At the end of the third quarter (Q3) of 2025, Enbridge added approximately $7 billion to its secured project backlog. Cumulative sanctioned growth capital of $35 billion through 2030 is a testament to revenue visibility. Ebel further said, “We believe our formula of steady cash flow growth and annual dividend increases will continue to deliver strong shareholder returns and position Enbridge as an investment of choice.”

Stable regulated growth and strong dividends

Fortis, a dividend knight, is the perfect complement to Enbridge. Due to 52 years of dividend growth and regulated utilities, expect growing income and a strong dividend. The current share price is $70.64, while the dividend offer is 3.55%. Combined with ENB, the average dividend yield of 4.765% is very attractive for TFSA users.

The $35.7 billion electric and gas company owns and operates regulated utilities in several service areas. Fortis expects its new $28.8 billion five-year plan to raise the mid-rate base from $41.9 billion in 2025 to $57.9 billion in 2030.

Management assures that the capital plan for the period 2026-2030 has a low risk and is very feasible. About 77% of total capital expenditure consists of investments in transmission and distribution assets. CEO David Hutchens confirmed that Fortis’ current portfolio is strong as 100% of assets are regulated.

In the interest of investors, the guideline for dividend growth is 4% to 6% annually, also through 2030.

Secure tax-free income

With Enbridge and Fortis, TFSA investors can secure stable dividends and long-term growth regardless of investment size. Furthermore, both stocks will allow tax-free profits to grow safely regardless of whether the market peaks or falls.