The Tax-Free Savings Account (TFSA) contribution limit for 2018 is expected to be revealed by the federal government in early December. As of this writing, it is expected to be $5,500, but there are some experts that are predicting a rise to $6,000 to account for inflation. Whatever the case, investors should be taking advantage of this investment vehicle and the benefits of tax-free capital growth.
Let’s take a look at four stocks that are great additions to provide income to your TFSA in 2018.
Andrew Peller Ltd. (TSX:ADW.A) produces and markets winemaking products; some of its top brands include Peller Estates, Sandhill, Trius, and Copper Moon. Operating profits rose 3.9% for the food and beverage industry in the third quarter of 2017, according to a November 24 Statistics Canada report. In its fiscal 2018 second-quarter report Andrew Peller reported an increase in sales of 4% and 2.4% year to date. It posted net earnings of $9.2 million compared to $7.6 million in the prior year.
The stock offers a dividend of $0.16 per share, representing a 1.5% dividend yield.
Gluskin Sheff + Associates Inc. (TSX:GS) is a Toronto-based wealth management firm. Operating profits in financial industries rose 20% to $34.9 billion in the third quarter of 2017. Gluskin Sheff + Associates released its fourth-quarter results on September 19. Assets under management grew to $8.9 billion from $8.3 billion in the fourth quarter of 2016. Base management fees also rose year over year to $27.1 million from $25.9 million. The company posted net income of $5.8 million compared to $3.3 million in Q4 2016.
The stock boasts an annual dividend of $1.00 per share, representing a dividend yield of 5.9%.
Sun Life Financial Inc. (TSX:SLF)(NYSE:SLF) is a Toronto-based financial services and insurance company. Operating profits for insurance carriers and related activities increased 196.8% year over year in the third quarter of 2017. In a September article, I’d covered why the rise of the middle class in Asia was great news for Sun Life Financial stock. In the third quarter, Sun Life reported net income of $817 million compared to $737 million in Q3 2016. It also saw its global assets under management climb by $31 billion.
The stock boasts a dividend yield of 3.7%.
Maple Leaf Foods Inc. (TSX:MFI) is a Mississauga-based packaged meats company. Operating profits in food and soft drinks manufacturing climbed 7.1% to $1.8 billion in the third quarter of 2017. In September, I’d discussed why rising food prices could propel Maple Leaf Foods stock. In its third-quarter report, Maple Leaf Foods posted a 6.6% increase in sales to $908.4 million. Net earnings also climbed 18.4% to $37.6 million compared to $31.8 million in Q3 2016. The company saw its cash flow increase by 5.2% to $154.3 million.
Maple Leaf Foods offers a dividend yield of 1.3%.
The Motley Fool Canada’s top dividend expert and lead adviser of Dividend Investor Canada, Bryan White, recently released a premium “buy report” on a dividend giant he thinks everyone should own. Not only that – but he’s created a must-have, exclusive report that outlines all the alarming traits of dividend stocks that are about to blow up – and how you can avoid them.
For this limited time only, we’re not only taking 57% off Dividend Investor Canada, but we’re offering you special access to two brand-new reports, free of charge upon signing up. They will outline everything you need to know so you steer clear of dividend burn-outs AND take advantage of the dividend giants in the Canadian market.
While this offer is still available, you can find out how to get a copy of these brand-new reports by simply clicking here.
Fool contributor Ambrose O'Callaghan has no position in any stocks mentioned.