Retirement Investors: 3 Top Canadian Stocks to Start a Balanced TFSA Portfolio

Here’s why Brookfield Asset Management Inc. (TSX:BAM.A)(NYSE:BAM) and another two Canadian market leaders with international operations deserve to be on your TFSA radar.

Canadians of all ages are searching for ways to take advantage of their TFSA to ensure they have enough money to fund a comfortable retirement.

Young investors right out of school want to get a head start on their retirement planning. Canadians in the middle of their careers might finally have some extra cash to invest after maxing out their RRSPs. Retirees that are forced to pull money out of a Registered Retirement Income Fund are searching for tax-free returns on the money they don’t need to spend right away.

Fortunately, the TFSA offers everyone an opportunity to set aside some extra cash to support their retirement living.

Let’s take a look at three Canadian stocks that provide growing dividends and give investors exposure to a broad base of segments and markets.

Sun Life Financial (TSX: SLF)(NYSE: SLF)

Sun Life is an attractive pick for investors who want to get exposure to growth in Asia through a Canadian company. Over the years, Sun Life has built a strong presence in some of the world’s most attractive emerging countries, including India, China, Malaysia, Indonesia, Vietnam, and the Philippines.

As the middle class grows and personal wealth expands in these countries, demand for insurance and investment products is set to rise, and Sun Life’s entrenched positions through it partnerships or subsidiary operations put it in a good position to benefit for decades. Sun Life already gets nearly 20% of its underlying net income from Asia.

The company pays a quarterly dividend of $0.475 per share for an annualized yield of 3.6%. Management is targeting medium-term average underlying earnings-per-share (EPS) growth of 7-10% per year. This should provide support for steady dividend increases.

Brookfield Asset Management (TSX:BAM.A)(NYSE: BAM)

Brookfield Asset Management gives investors a chance to invest in assets around the world. These “alternative” assets include infrastructure plays in the utility, transportation, communications, and energy sectors. Brookfield Asset Management also owns an impressive collection of office buildings. In addition, the company is a major renewable energy player with more than 200 hydroelectric facilities.

Brookfield Asset Management is truly a global business, with more than 100 offices located in at least 30 countries, and it has been around for more than a century. The attraction with this stock is the opportunity for steady capital appreciation. Five years ago investors paid $24 per share. Today, the stock trades for close to $56.

Brookfield Asset Management raises its dividend every year. The current payout provides a 1.4% yield. If you want a buy-and-forget name to add to your portfolio, Brookfield Asset Management deserves to be on your radar.

Toronto Dominion Bank (TSX: TD)(NYSE: TD)

TD is a giant in the North American Banking industry with a market capitalization of more than $145 billion and $1.3 trillion in assets. The company serves 25 million customers and employs roughly 85,000 people.

Over the years, TD has built up a large presence in the United States and is now counted among the top 10 banks in the country. This is important for Canadian investors who want exposure to the banking sector south of the border without having to own the U.S. banks. The American operations generate more than 30% of TD’s profits.

TD has a strong track record of dividend growth, and that should continue in step with targeted EPS gains of 7-10% per year. TD already raised the payout by nearly 12% in 2018. The current dividend provides a yield of 3.4%.

The bottom line

Sun Life, Brookfield Asset Management, and TD are top-quality companies that should deliver strong shareholder returns in the coming years and decades. An equal investment across the three companies would give investors good global exposure through solid Canadian stocks.

The Motley Fool owns shares of BROOKFIELD ASSET MANAGEMENT INC. CL.A LV. Fool contributor Andrew Walker has no position in any stock mentioned.

More on Dividend Stocks

Piggy bank wrapped in Christmas string lights
Dividend Stocks

The $7,000 TFSA Move Most Canadians Leave Until December

An earlier TFSA contribution can simplify your plan, even when the immediate tax saving is smaller than you expect.

Read more »

diversification is an important part of building a stable portfolio
Dividend Stocks

Diversification 101: How Beginners Can Protect Against Market Shocks

Stocks like TD Bank and Fortis provide an anchor to a well-diversified portfolio for resilient long-term performance.

Read more »

man makes the timeout gesture with his hands
Dividend Stocks

Why Dividend Cuts Happen and How to Spot the Warning Signs

Learn why dividend cuts happen and how to spot warning signs, using BCE and TELUS to examine cash flow, debt,…

Read more »

woman stares at chocolate layer cake
Dividend Stocks

Just Turned 50 With Little Saved? Here’s Where to Start

This investing strategy can reduce risk while still delivering decent yield.

Read more »

Trans Alaska Pipeline with Autumn Colors
Dividend Stocks

1 Top Canadian Dividend Stock Down 17% to Consider Now for Lifelong Income

This company has increased the dividend annually for more than three decades.

Read more »

Senior uses a laptop computer
Dividend Stocks

A 4.9% Dividend Stock I Plan to Hold Long Term: What $5,000 Would Collect

This is a solid utility stock to consider on dips for a long-term portfolio with a focus on growing income.

Read more »

shopper carries paper bags with purchases
Dividend Stocks

Your GIC Pays 3% to 4%: This TSX Stock Pays You Every Month Instead

SmartCentres pays more income than an illustrative GIC, but a modest unit-price decline could erase the first-year advantage.

Read more »

the word REIT is an acronym for real estate investment trust
Dividend Stocks

REIT Investing: I’m holding SmartCentres for its 98.1% Occupancy

SmartCentres’ fundamentals remain solid. Besides high occupancy, rental growth and a high-quality tenant base are positives.

Read more »