Get it Done: 2 No-Brainer Stocks to Start Investing in Your TFSA

Canadian Tire (TSX:CTC.A) and another dividend stock have rapidly swelling yields to buy now.

| More on:
IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT

Image source: Getty Images

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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joey Frenette 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.

More on Investing

thinking
Dividend Stocks

Should You Buy BCE Stock for its 8.6% Dividend Yield?

Down over 20% from all-time highs, BCE stock offers you a tasty dividend yield in 2024. But is the TSX…

Read more »

grow dividends
Tech Stocks

Why Nuvei Stock Jumped 26% on Monday

Nuvei (TSX:NVEI) stock saw shares surge today as the company confirmed it's in talks to go private through a buyout.

Read more »

consider the options
Investing

Better Buy for the Dividend: Enbridge or Nutrien?

Enbridge (TSX:ENB) and Nutrien (TSX:ENB) are great dividend plays for new investors going into April.

Read more »

Gold bars
Stocks for Beginners

TSX Materials in March 2024: The Best Stock to Buy Right Now

Materials have been quite volatile, though the price of gold has surged to all-time highs. That makes this stock a…

Read more »

grow dividends
Dividend Stocks

How Long Would It Take to Turn $20,000 Into $100,000 With TSX Dividend Stocks?

Here's how high-quality TSX dividend stocks and the power of compound interest can help grow your investments by 400% or…

Read more »

Happy diverse people together in the park
Tech Stocks

A Once-in-a-Generation Investment Opportunity: Artificial Intelligence (AI) Growth Stocks

Canadian tech companies like Kinaxis (TSX:KXS) are doing big things in AI.

Read more »

Paper airplanes flying on blue sky with form of growing graph
Dividend Stocks

2 Soaring Stocks I’d Buy Now With No Hesitation

These two stocks may be the most expensive on the market, but they're high for a reason! And I'm still…

Read more »

Arrowings ascending on a chalkboard
Investing

This Canadian Blue Chip Is Trouncing TSX Returns, and It Still Has Room to Run

Alimentation Couche-Tard (TSX:ATD) stock looks quite frothy heading into earnings, but there may still be upside.

Read more »