The TSX’s power sector has inherent dangers, though many oil & fuel business gamers are appropriate holdings in a Tax-Free Financial savings Account (TFSA) for revenue and capital progress. Right this moment, one firm stands out and is an ideal TFSA inventory. 

Whitecap Assets (TSX:WCP) is a number one Canadian power producer. This $13.1 billion growth-oriented firm boasts wholesome progress prospects. The excessive 6.95% yield could be very attractive, to not point out the month-to-month dividend payout. Under is the revenue stream if the accessible TFSA contribution room is $14,000, or twice the annual restrict in 2025.

The month-to-month payout within the instance above is $81.08, tax-free if earned inside a TFSA. Additionally, assuming you don’t acquire the dividends and as an alternative reinvest them (12 occasions a yr), the $14,000 funding will compound to $27,995.74 in 10 years. The revenue from dividends in 120 months is $13,995.74.

WCP skilled value fluctuations throughout the yr as a result of tariff chaos. Nonetheless, the sector picked up momentum, surging almost 9% within the final six months. Whitecap carried out higher, advancing 42% throughout the identical interval to lift its year-to-date acquire to 9.62%.

Transformative merger

In March 2025, Whitecap Assets supplied to accumulate Veren Inc., a Canadian oil and fuel exploration and manufacturing firm, and merge with it. The $15 billion deal was accomplished in Could. Whitecap Assets turned the nation’s seventh-largest oil & pure fuel producer and the fifth-largest pure fuel producer within the post-merger.

Administration is assured that the expanded asset base ensuing from the transformative merger will drive significant worth for shareholders. Whitecap Assets shortly produced excellent working and monetary leads to the third quarter (Q3) of 2025.

Seamless integration

Within the three months ending September 30, 2025, whole revenues (petroleum and pure fuel) climbed 86.4% to $1.66 billion in comparison with Q3 2024. Web revenue declined 25.5% yr over yr to $204.2 million, however free funds circulation rose 157% to $350.3 million from a yr in the past.

Because of seamless integration and sturdy operational efficiency, the board of administrators has authorized a capital funds of $2.0 billion to $2.1 billion for 2026. Whitecap targets a mean annual manufacturing of 370,000 to 375,000 barrels of oil equal per day (boe/d). The 2025 manufacturing steering is 305,000 boe/d.

U.S. tariffs are a threat to the enterprise and income. Nevertheless, Whitecap Assets is extra resilient to commerce tensions and financial headwinds as a consequence of its merger with Veren. The corporate can be ready to tighten its funds if the present oil value downtrend continues.

In accordance with Dane Gregoris, an analyst on the analysis agency Enverus, the Canadian oilpatch stays reliably productive. It has different benefits to maintain manufacturing excessive regardless of decrease costs.

Uninterrupted payouts

Whitecap Assets is a high-quality inventory if the payout consistency is your major consideration. The massive-cap inventory hasn’t missed a month-to-month fee to shareholders since January 2013. For TFSA buyers searching for regular revenue, this dividend payer’s reliability makes it a best choice.