TFSA Investors: The 5 Top Value Stocks to Outperform the Market in April

With RRSP season behind us, its time to resume contributions to your TFSA. Consider adding these blue-chip holdings to your savings account, including Enbridge Inc. (TSX:ENB)(NYSE:ENB) and four others.

| More on:

April 1 didn’t just mark April Fool’s Day; it also marked the beginning of the second fiscal quarter of 2018.

With RRSP season firmly in the rear-view mirror, it’s time to resume contributions to your Tax-Free Savings Account (TFSA).

The federal government raised the ceiling on every Canadian individual’s TFSA account by another $5,500 this year, bringing the total that any Canadian can contribute to their TFSA to a grand total of $57,500, provided they were born before January 1, 1991.

Unlike Registered Retirement Savings Plans (RRSPs), gains and dividends in your TFSA are accumulated “tax free,” meaning that once you’ve put the money in, you’ll never have to pay tax on it ever again.

With that in mind, let’s look through some of the top value stocks in the market in April that are worthy of very careful consideration for your savings account.

Molson Coors Brewing Co. (TSX:TPX.B)(NYSE:TAP)

Molson Coors made big splash late in 2016 when it completed its acquisition of Miller Coors from Anheuser Busch Inbev NV, making Molson the world’s third-largest alcoholic beverage brewer by liquid volume.

Yet the market has had more than a little difficulty stomaching the news, with the purchase costing shareholders a cool $12 billion; there are some concerns that the price tag would slow down forthcoming dividend payments.

Yet, with shares having fallen more than 20% off their 52-week highs, the bears have had their way, which should set the stock up for a nice bull rally.

Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE)

Cenovus is another company that made a big acquisition recently, acquiring its 50% outstanding stake in a joint venture with ConocoPhillips, which effectively doubled the size of Cenovus’s production capacity.

Shares are only a little off their lows right now, making this an excellent — and timely — deep-value play.

Royal Bank of Canada (TSX:RY)(NYSE:RY)

Royal Bank is a great stock to add to your list of long-term holdings.

Royal Bank is Canada’s largest financial institution, a systemically important financial institution, and it’s actually the single biggest publicly traded company in Canada, period.

Royal Bank isn’t going anywhere, and the shares pay you 3.69% to wait, including a 4.5% increase to that payout last year.

Enbridge Inc. (TSX:ENB)(NYSE:ENB)

Enbridge shareholders have been taken for a rough ride over the past 12 months, with shares having fallen more than 25% over that stretch.

Trading at just under $40 on the Toronto Stock Exchange heading into Tuesday’s trading, the company offers investors great value with a dividend yield of 6.8% and a recent announcement that pipelines should be at capacity for at least the next couple of years.

Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM)

CIBC doesn’t get quite the same attention as some of its larger peers, but that doesn’t mean the shares today don’t present as a great investment for your savings account.

CIBC’s dividend yield clocks in at 4.72% — the highest of any Canadian lender entering Tuesday’s trading — and trades at a price-to-earnings ratio of 10.3 times, the lowest of any of Canada’s systemically important financial institutions, making it the prototypical value play within the sector.

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 Jason Phillips owns shares in Cenovus Energy, owns the Enbridge 25-strike January 2019 calls, and the Molson Coors Brewing 60-strike January 2019 calls. The Motley Fool owns shares of Enbridge and Molson Coors Brewing. Enbridge is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

Dividend Stocks

2 Canadian REITs on Sale: A Passive Landlord’s Dream Come True!

It's time for investors to explore Canadian REITs that are discounted and become passive landlords!

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

Retirees: Top TSX Stocks to Earn Worry-Free Passive Income

These TSX stocks have consistently returned cash to their shareholders irrespective of the volatility and market conditions.

Read more »

Man making notes on graphs and charts
Dividend Stocks

Recession Stocks for Beginners

Recession-proof opportunities like Shaw Communications (TSX:SJR.B)(NYSE:SJR) should be on your watch list.

Read more »

protect, safe, trust
Dividend Stocks

1 Dividend Stock Yielding 8.98% Offering Stable Income

This dividend stock on the TSX today offers investors a chance at over $4,000 in returns over the next year…

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Passive Income: 2 Dividend Stocks Yielding About 4-5% to Buy Now

These discounted dividend stocks should provide market-beating passive income and total returns with below-average risk in the long run.

Read more »

Woman has an idea
Dividend Stocks

2 Ways to Fight the Record-High Inflation

Investing allows you to grow your savings faster than inflation can deplete them, and different types of investments offer various…

Read more »

Couple relaxing on a beach in front of a sunset
Dividend Stocks

3 Dividend Stocks I Plan on Buying This Summer

Are you on the hunt for new dividend stocks to add to your portfolio? Here are three stocks I plan…

Read more »

Dividend Stocks

Real Estate Prices Finally Soften: Buy These 2 REITs?

Two recovering REITs should attract investors if real estate prices continue to soften and the central bank raises interest rate…

Read more »