{"id":688075,"date":"2026-05-23T07:16:08","date_gmt":"2026-05-23T07:16:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/688075\/"},"modified":"2026-05-23T07:16:08","modified_gmt":"2026-05-23T07:16:08","slug":"how-canadians-should-be-using-their-tfsa-contribution-limit-in-2026-2","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/688075\/","title":{"rendered":"How Canadians Should Be Using Their TFSA Contribution Limit in 2026"},"content":{"rendered":"

Here is the bottom line: if you are stuffing your Tax-Free Savings Account<\/a> (TFSA) with cash or a low-interest fixed-income product, you are likely costing yourself thousands of dollars in long-term, tax-free wealth.<\/p>\n

The smarter play is putting quality compounders inside the account, and right now, Dollarama (TSX:DOL<\/a>) stands out as one of the best TSX stocks you can buy.<\/p>\n

The 2026 TFSA contribution limit, as set by the Canada Revenue Agency (CRA), is $7,000. If you have been eligible since the account launched in 2009 and have never put a dollar in, your total available room sits at $109,000.<\/p>\n

\"A<\/p>\n

Source: Getty Images<\/p>\n

Why Dollarama belongs in your TFSA right now<\/p>\n

The TFSA is purpose-built for growth. Every dollar of capital gains, every dividend reinvested, every share that appreciates in value inside that account is completely tax-free on withdrawal.<\/p>\n

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When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor Canada’s total average return is 94% – a market-crushing outperformance compared to 85% for the S&P\/TSX Composite Index.<\/p>\n

They revealed what they believe are 10 stocks for investors to buy right now, available when you join Stock Advisor Canada.<\/p>\n

* Returns as of April 20th, 2026<\/p>\n

For investors building toward retirement or a major financial goal, the right move is to load the account with high-quality businesses that compound quietly over time.<\/p>\n

One such blue-chip TSX dividend stock<\/a> is Dollarama. (TSX:DOL<\/a>). Founded in 1992, Dollarama sells general merchandise, consumables, and seasonal products at discounted prices.<\/p>\n

In fiscal 2026, Dollarama delivered same-store sales (SSS) growth of 4.2% in Canada while earnings per share grew by 14%.<\/p>\n

Dollarama is well-positioned to benefit from a sluggish macro environment as consumers wrestle with inflation. Household spending has been cautious for several quarters. And when consumers tighten their belts, they trade down, look for value, and go to Dollarama.<\/p>\n

Dollarama President and CEO Neil Rossy put it plainly on the earnings call: \u201cAs Canadians face pressures on their household budgets, they turn to Dollarama for year-round value and everyday convenience.\u201d<\/p>\n

Basically, Dollarama operates a recession-resistant business.<\/p>\n

Dollarama\u2019s growth story is far from over<\/p>\n

One of the most underappreciated aspects of Dollarama\u2019s story is its international expansion plans. <\/p>\n

Through a stake in Dollarcity, the company now operates across Latin America, with over 700 stores in Colombia, Peru, El Salvador, and Guatemala, plus a growing presence in Mexico.<\/p>\n

In fiscal 2026, Dollarama\u2019s share of Dollarcity\u2019s net earnings jumped more than 47% to $191.5 million.<\/p>\n

At the same time, Dollarama acquired a national discount retail chain in Australia in late fiscal 2026. Rossy framed the long-term vision clearly: \u201cOnce you\u2019ve established a low-cost retail platform in Australia with over 500, 600 stores, we feel very confident that being the 800-pound gorilla in the market will play very well for our shareholders.\u201d<\/p>\n

That is the kind of long-horizon thinking TFSA investors should want from a core holding.<\/p>\n

Dollarama raised its quarterly dividend by 13.4% in fiscal 2026. Dividend income in a TFSA is tax-free, which eliminates the need to calculate dividend tax credits entirely.<\/p>\n

The company also bought back more than 4.4 million shares during the year, spending over $834 million to reduce its share count, a direct boost to long-term shareholder value.<\/p>\n

Dollarama is guiding for three to four percent SSS growth in Canada in fiscal 2027, consistent with last year\u2019s guidance. Its gross margin guidance of 45% to 45.5% reflects discipline in cost management, even as global supply chain pressures from the ongoing Middle East conflict create some uncertainty.<\/p>\n

Management noted on the earnings call that it has \u201ca number of levers\u201d to mitigate near-term cost impacts and will pass on price increases only where absolutely necessary.<\/p>\n

That kind of steady, measured execution is what long-term TFSA investors should be hunting for.<\/p>\n

Your $7,000 this year deserves better than a savings account. Put it to work in a business that compounds, pays a growing dividend, and gets stronger when the economy gets harder. Dollarama checks every one of those boxes.<\/p>\n","protected":false},"excerpt":{"rendered":"Here is the bottom line: if you are stuffing your Tax-Free Savings Account (TFSA) with cash or a…\n","protected":false},"author":2,"featured_media":667720,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[45,49,48,133,131,132],"class_list":["post-688075","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-ca","tag-canada","tag-finance","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/688075","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=688075"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/688075\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/667720"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=688075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=688075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=688075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}