The Canada Income Company (CRA) has set the Tax-Free Financial savings Account (TFSA) contribution restrict for 2026 at $7,000. For those who needed to make investments this whole quantity in only one dividend inventory, which among the many three would you select?
| Inventory | No. of shares for $7,000 | Annual Dividend |
| CNQ | 119 | $279.65 |
| GSY | 63 | $367.92 |
| SRU.UN | 250 | $462.50 |
The primary intuition is to say the third inventory. It’s providing you the very best dividend earnings. However is that this the one criterion?
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Is that this the dividend inventory you’re on the lookout for?
The third inventory is SmartCentres REIT (TSX:SRU.UN), which is the owner of Walmart. That secures its dividend-paying capability. Nonetheless, what chances are you’ll not know is that this REIT’s unit value has already reached its honest worth. It’s reinvesting the cash to make business and residential buildings, and warehouses, which might enhance the worth of its retail shops. The REIT has not elevated its dividend within the final 5 years. And even earlier than that, it elevated dividends by simply 2–3%.
SmartCentres has sturdy fundamentals and a historical past of no dividend cuts, which makes it inventory to carry in the long run. Nonetheless, there’s restricted share value development, and the possibilities of dividend development look slim. So in order for you larger returns now, that is the inventory to go all in together with your TFSA restrict.
Common dividend as we speak for larger passive earnings tomorrow
In case you are up for one thing dangerous, the second inventory is your choose. However why would you select $95 in decrease earnings? The second inventory is non-prime lender goeasy (TSX:GSY), which is buying and selling close to its 16-month low. goeasy inventory has dipped nearly 50% since September 2025 after a brief vendor, Jehoshaphat Analysis’s report, questioned the lender’s definition of delinquency and the way it isn’t reporting them. In any other case, how can a non-prime lender have a charge-off fee of simply 9%?
If there’s any fact within the brief vendor’s report, the rising mortgage portfolio of goeasy hints in danger as an alternative of returns. The lender known as the short-seller’s report deceptive. It highlighted knowledge round ample mortgage loss provision, internet principal funds, and curiosity income, all of which trace that the loans aren’t delinquent. They’re incomes cash.
Nonetheless, the excessive threat has decreased the share value however not the dividend. For $7,000, you should purchase 63 shares of goeasy and get $368 in annual dividends. The chance has a reward, too. goeasy has been rising its dividends at a mean annual fee of 30% within the final 11 years. If it could possibly develop its dividend by 15% for the subsequent 5 years, your $368 may nearly double to $740. There’s a threat of no dividend development in addition to a dividend reduce within the worst-case situation.
The balanced dividend inventory is ideal for a TFSA
On one hand, you have got low-risk SmartCentres with stagnant however excessive dividends. On the opposite is high-risk goeasy with excessive development however a decrease present dividend. Canadian Pure Assets (TSX: CNQ) balances each threat and reward. Proudly owning Canada’s largest oil sands reserve, you profit from its price benefit over its opponents. It has mixture of Artificial crude, WTI, liquified pure fuel (LNG), and extra.
Whereas CNQ advantages from rising oil and fuel costs, its disciplined capital allocation helps it purchase extra oil and fuel reserves whereas preserving debt in test. It has been shopping for extra reserves and accelerating debt reimbursement from the money circulate generated by promoting the brand new produce. It has a decrease threat, as the corporate has a 24-year historical past of rising dividends at a mean annual fee of 20%. As Canada explores new commerce companions for its oil and fuel, Canadian Pure Assets may have a purpose to provide extra.
If CNQ can develop its dividend by 15% for the subsequent 5 years, the $280 annual passive earnings may double to $562.
Investor’s alternative
The place to speculate for annual passive earnings relies upon not simply on the dividend earnings but in addition in your threat urge for food and your monetary objectives. Whether or not you need extra passive earnings now or later, your risk-bearing capability will decide which among the many three to put money into. A greater strategy could be to diversify the $7,000 quantity among the many three primarily based in your threat urge for food.