BLN:CC - The Best $7,000 TFSA Approach for Canadian Investors
2025-10-05 09:30:00 ET
Today, $7,000 is not an ordinary figure and is significantly popular among Canadians. The amount matches the annual Tax-Free Savings Account (TFSA) contribution limits for 2024, 2025, and 2026. If used to start investing in income-generating assets, such as stocks, the money can grow tenfold.
Given that TFSA earnings from capital gains and dividends are tax-free, the best approach is to hold stocks that offer income and growth. One option is to split $7,000 between Suncor Energy ( TSX:SU ) and Blackline Safety ( TSX:BLN ) to achieve the optimal balance and results.
Passive income
Suncor Energy is a long-term investment, although oil price volatility could impact its profitability. Nonetheless, the oil bellwether has endured challenging market conditions for more than 100 years. The large-cap stock trades at $57.56 per share (+17.25% year to date) and pays a 3.84% dividend. Your $3,500 can purchase 60 shares and produce $33.60 tax-free income every quarter.
The present-day Suncor has a market capitalization of $72 billion. It commercially develops oil sands and produces oil. The refineries in Canada and the U.S. process oil sands crude into refined products. Suncor has assets and investments domestically and internationally, with a focus on exploration and production. The fully owned Petro-Canada provides fuel and other services.
Rich Kruger, president and CEO of Suncor, said the company has delivered higher performance in the first half of 2025, including significantly higher volumes and substantially lower costs. The 831,000 barrels a day production is a new record, also the highest first half in Suncor’s history.
Suncor Energy successfully recovered from a huge loss in 2020, largely due to the oil price war and the global pandemic. The integrated energy company has reported consistent profitability in the ensuing years. In the second quarter (Q2) of 2025, free funds flow reached $1 billion, enabling $750 million in share repurchases and $700 million in dividend payments to shareholders.
Capital growth
Blackline Safety deserves attention for its strong growth in the last three years (+337.43% total return). Momentum is on the side of this acknowledged leader in connected safety technology. The current share price of $7.48 is a steal, vis-à-vis its visible growth potential.
This $613.6 million company offers safety solutions that detect hazards and analyze data in real-time. The immediate response in critical situations, such as gas leaks, falls, or health-related events, ensures workers’ protection. Blackline’s goal is to transform the industrial workplace into a connected one.
Blackline takes pride in its disruptive and scalable Hardware-enabled Software-as-a-Service business model. Moreover, there is strong demand for its cloud-connected personal safety wearables and area gas monitors.
In Q3 fiscal 2025 (three months ending July 31, 2025), revenue increased 12% year over year to $37.6 million. It was the 34th consecutive quarter of positive revenue growth. The annual recurring revenue rose 29% to a record $80.2 million from a year ago.
According to Blackline CEO and chairman Cody Slater, the company is well-positioned to grow its market share. The massive global opportunity in the industrial connected gas detection market is US$4.1 billion.
Make educated choices
TFSA investing isn’t a hit-or-miss proposition. You need educated stock choices to make the most of your $7,000 or available contribution room.
The post The Best $7,000 TFSA Approach for Canadian Investors appeared first on The Motley Fool Canada .
Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
2025