For Tax Free Savings Accounts (TFSA) investors, this kind of pause reduces the urge to trade every headline and shifts the focus back to companies that can grow profits on regular days. So let’s look at two to consider.
R.Y
Royal Bank of Canada (TSX:RY) fits into this pricing background because it makes money from more than one engine. It runs Canada’s personal and commercial banking, asset management and a large capital markets division, so it can collect fees and credit spreads even as growth slows. The stock has also been a strong performer, with its share price up around 38% in the past year alone. A stable Bank of Canada helps because it supports confidence, credit demand and capital markets activity without forcing a sudden reset.
RBC has also proven over the past year that it can navigate changing regulations while still growing. In April 2025, the country backed away from certain sustainable finance targets after changes to the Competition Act tightened standards around environmental claims. Big banks live under a microscope, and disclosure rules can quickly reshape narratives. Then, strong capital markets and asset results helped RBC beat earnings expectations in December 2025, aided by stronger trading and a busier deal environment. That mix of resilience and upside explains why this name often ends up on the TFSA shortlist when interest rate uncertainty disappears.
The profit figures make the case feel practical rather than poetic. RBC reported fiscal 2025 net income of $20.4 billion and diluted earnings per share (EPS) of $14.07, both up 25% year-on-year, and recorded a CET1 ratio of 13.5%. It also reported fourth-quarter adjusted net income of $5.6 billion, or $3.85 per share, while provisions for credit losses reached about $1 billion. That credit line will remain worth keeping an eye on in 2026, even with stable interest rates, because stress can still creep in among households. Meanwhile, the shares trade at just 16.6 times earnings with a dividend yield of 2.8%, which still looks reasonable for a Canadian blue chip.
WCN
Waste connections (TSX:WCN) collects waste, operates landfills and processes recycling in Canada and the United States. Customers rarely cancel and the company can often increase prices while improving route density and margins. That’s important when the Bank of Canada pauses interest rate changes, as investors begin to favor companies that can grow without perfect economic conditions.
Over the past year, Waste Connections has also expressed confidence through capital returns. In October 2025, it approved an 11.1% increase in its quarterly dividend to $0.35 per share. Those kinds of increases are usually indicative of cash flow comfort, and it suggests management expects sustainability through 2026. The company also continues to use temporary acquisitions to deepen its network, which can support margins if done with discipline. However, the risks never go away. Environmental regulations may become stricter, landfill permitting may be delayed, and labor or fuel costs may increase.
The latest earnings snapshot shows why investors often treat this stock as a defensive compounder, with one big caveat: the price. For the third quarter of 2025, the filings showed revenue of about $2.5 billion, net income of about $286 million and diluted earnings per share of $1.11. Through the first nine months of 2025, operating cash flow was approximately $1.9 billion, helping to finance capital investments, acquisitions and dividends without having to rely on cheap financing. The caveat is in the valuation. The stock trades at 70 times earnings with a yield of 0.87.
In short
Could these be TFSA purchases right after the Bank of Canada went steady? That could be possible, if you want firm compound instead of tension. In fact, you can still create a steady income starting at $7,000 per share.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| WCN | $231.61 | 30 | $1.97 | $59.10 | Quarterly | $6,948.30 |
| R.Y | $233.58 | 29 | $6.56 | $190.24 | Quarterly | $6,773.82 |
If you can cut through the noise and reinvest distributions, both are suitable for a TFSA built for the real world.
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