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    Home»Stock News»The TFSA Withdrawal Rule Every Canadian Should Know
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    The TFSA Withdrawal Rule Every Canadian Should Know

    October 12, 2026
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    Group of people in a line at an ATM waiting to make a cash withdrawal
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    A Tax-Free Savings Account (TFSA) gives you a lot of flexibility, but that flexibility can also lead to mistakes. You can withdraw money whenever you want without paying tax, which sounds simple enough. The part Canadians sometimes forget is that you have to wait until the next calendar year to get that withdrawal amount added back to your contribution room limit.

    Put the money back too soon without enough available room, and you could create an overcontribution problem. That is one reason I always recommend treating a TFSA as a place for long-term investing instead of constant trading and withdrawals. The longer you remain invested in fundamentally strong businesses, the more time their earnings, dividends, and share-price growth have to compound.

    Here are two top Canadian stocks I think are worth holding patiently inside a TFSA.

    Source: Getty Images

    Brookfield Asset Management

    If you want a TFSA holding that combines dividend income with exposure to global growth trends, Brookfield Asset Management (TSX: BAM) is definitely worth taking a closer look.

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    Headquartered in New York, BAM is a global alternative asset manager with more than US$1 trillion in assets under management across infrastructure, energy, private equity, real estate, and credit. Its stock trades around $66 per share with a market cap of $104.6 billion. It also offers a 4.4% annualized dividend yield at this market price.

    BAM’s shares have had a mixed run recently. While it’s down about 21% over the last year, it remains up 5% over the last six months. That weakness makes the stock look undervalued compared with the momentum in Brookfield’s underlying business.

    About that: In the second quarter, the asset manager raised a record US$77 billion and deployed US$21 billion. BAM’s fee-related earnings climbed 20% year-over-year (YoY) to US$808 million, while distributable earnings rose 15% YoY to US$707 million. More importantly, fee-bearing capital jumped 19% YoY.

    Brookfield has also been building for future growth by completing its acquisition of Oaktree and expanding partnerships tied to artificial intelligence (AI) infrastructure, energy, and private markets.

    For TFSA investors who want to keep strong businesses working over the long run, BAM stock’s growth initiatives and 4.4% yield make its recent stock weakness an attractive opportunity.

    Canadian Tire

    Canadian Tire (TSX: CTC.A) is a smart choice for investors who like the sound of owning an established Canadian business with improving earnings and a steady dividend.

    The company owns and operates retailers (such as Mark’s and Party City Canada), gas stations, and commercial properties throughout the country. After gaining 14% in the last year, its shares now trade around $192 per share, giving it a market cap of about $10 billion. The stock also offers a 3.8% annualized dividend yield.

    In the June quarter, Canadian Tire’s revenue rose 2.4% YoY, while income before income taxes increased 8.4% to $280 million.

    At the same time, there were encouraging signs across its retail banners. For example, SportChek’s comparable sales jumped 8%, while Mark’s comparable sales increased 4.2%. Canadian Tire’s e-commerce sales also grew 14%, showing that its digital channels continue to gain traction.

    The company continues to advance its True North strategy through more personalized Triangle credit card loyalty offers, stronger e-commerce capabilities, and refreshed store concepts. Overall, Canadian Tire’s earnings growth, dividend income, and loyalty strategy make it an attractive long-term TFSA hold.



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