TFSA: 3 Canadian Stocks That Are Perfection With a $10,000 TFSA Investment

A $10,000 contribution to a Tax Free Savings Account (TFSA) may seem small compared to the big numbers on the market. Still, things can snowball quickly if you choose companies that you can cut through the noise. The benefit of the TFSA comes from tax-free compounding and reinvested dividends that are never cut by the annual tax. A top TFSA stock has three hallmarks: a long path to earnings growth, a balance sheet that can withstand bad years, and a story you can easily explain so you don’t panic sell during a tough week. Diversification is important because one downturn cannot sink everything alone. So let’s take a look at three that offer diversification and growth.

EQB

Equitable Bank (TSX:EQB) seems relevant now as Canadian rate cuts could revive lending while savers still care about competitive deposit rates. EQB operates EQ Bank and a broader lending platform, so it can help customers grow digitally while still making money in the traditional way, by properly pricing risk. It benefits from scale, because stable deposits can support lending without relying too heavily on expensive wholesale financing. The shares haven’t been flashy, with a total return of around 2.5% over the past year, leaving room for upside if execution remains strong.

In its fiscal 2025 results, EQB reported adjusted diluted earnings per share (EPS) of $8.90. At the time of writing this, it’s trading at around 15.5 times earnings, which seems valuable considering shares have rallied after the last earnings report. Looking ahead, a strategic partnership with Loblaw for PC Financial, EQB could broaden its customer funnel and strengthen its funding base, adding a catalyst beyond basic loan demand. The risk remains clear: a weaker economy could offset credit losses, and housing market weakness could slow loan growth.

KXS

Kinaxis (TSX:KXS) deserves attention because supply chain problems never really go away and companies continue to pay for tools that reduce delays and waste. Kinaxis sells subscription software that allows large companies to plan demand, inventory and production in one system. It’s in a tough niche because customers are loathe to rip out the core scheduling software once it’s embedded. The stock has cooled from previous highs, up just 3% in the past year and down from those highs. That volatility can test your patience, but it can also create better entry points.

In the third quarter (Q3) of 2025, Kinaxis reported total revenue of US$134.6 million. Based on its valuation, it trades at 107 times earnings, so you’re buying it for sustainable growth and not for a bargain. The company said that after that quarter it had raised SaaS guidance and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and launched its first Maestro Agents, which could open new upsell flows. The risk comes from corporate budget cycles: a slowdown in technology spending could hurt bookings and hurt major stocks.

AEM

Agnico Eagle Mines (TSX:AEM) rounds out the trio because gold can stabilize a portfolio when investors are concerned about inflation, geopolitics or recession. Agnico operates a portfolio of mines, with a large footprint in Canada, and has built a reputation for disciplined execution. However, raw materials still cause mood swings. The stock price was volatile; shares rose 119% in the past year. In a TFSA, that volatility can turn into opportunity if you can stay calm.

In the third quarter of 2025, Agnico posted record adjusted net income of $1.085 billion, or $2.16 per share, and generated free cash flow of $1.190 billion. Those are figures in US dollars, and the company noted that higher gold prices could also increase royalty costs. The opportunities lie in strong margins and a strengthened financial position, while the risk lies in cost increases, operational hiccups and a drop in the gold price that can quickly hit sentiment.

In short

Put EQB, KXS and AEM together and you get a TFSA basket that can breathe in different markets. EQB offers sensible valuation and stable composition. KXS adds higher octane growth coupled with a real pain point for businesses. AEM adds diversification and cash generation when fear sets in. Divide the $10,000 three ways, reinvesting what comes in and continuing to add as new space becomes available. Then let the TFSA do the heavy lifting for years to come.