New Tax-Free Savings Account (TFSA) investors should focus less on timing their first entry into the market and look to maximize their time in the market. Indeed, it’s long-term investing that counts most. And though the short-term haze could see more potholes in the road, I think the long-term roadmap isn’t all too bad.
Not with the rise of impressive emerging technologies, ranging from generative artificial intelligence (GAI) to the Internet of Things (IoT), which may help jolt gross domestic product numbers steadily over the next decade.
TFSA investors: Time to brave the September swoon in stocks?
In any case, TFSA investors should look to brave the recent September swoon rather than wait for things to settle into year’s end. By braving the dips, you can get more for your investment dollars.
It’s never easy to jump in when others panic-sell. But if you want to get your TFSA off on the right track, you need to think like an independent, value-conscious contrarian. At the end of the day, it’s these types of investors who can outpace the rest of the markets and make money even when stocks are at a loss in any given down year.
Without further ado, let’s check out two top stocks I’d be willing to stash in a TFSA for years.
BCE
Back when BCE (TSX:BCE) stock was at its peak of nearly $74, it was hard to envision shares could plunge to around $50 in around a year and a half. The stock is crumbling under its own weight, with no bottom in sight. Indeed, the telecoms are so heavily out of favour, and nobody seems to want to step forward to capture the swelling yields.
BCE stock yields 7.51% right now. Another steep downward move would put it above 8%. For now, the dividend looks safe. But if a recession brings forth more trouble, investors should be prepared to fasten their seatbelts if a reduction is considered.
The telecom business faces pressure, but it’s the media segment that I think is the major long-term drag. As the 5G boom continues post-recession, BCE’s wireless business could flex its muscles again. But as for the media segment, I’m not nearly as bullish as we move into the age of AI-driven ads.
In any case, I like the stock for its dividend, which isn’t going anywhere anytime soon!
Canadian Tire
Canadian Tire (TSX:CTC.A) is a retailer that’s been hit with an uppercut from Mr. Market this summer. The stock sunk 22% from its summertime peak and could be headed for new 52-week lows by year-end. Shares are now down more than 30% from their 2021 peak, with a 4.64% dividend yield and a mere 10.65 times trailing price-to-earnings multiple.
As recession storm clouds move in, sales could slump much further from here. Regardless, I find some chance of recession is already baked in. With shares at a pretty strong level of long-term support at $146, I’d not be afraid to be a net buyer.
