In previous articles, I have gone over why millennials should start investing early and often. Millennials face a challenging environment, as the cost of living continues to increase significantly in the 21st century. For those that value flexibility, the Tax-Free Savings Account (TFSA) is a fantastic option going forward.
Today, I want to focus on three stocks that can work to build a balanced TFSA that will offer opportunity for big growth in the long term, while also providing a solid base of income.
Innergex Renewable (TSX:INE)
No one wants to feed into the tired cliché of the obsessively socially conscious millennial. In truth, renewables are a sound investment when we consider how much the private and public sector is investing in clean energy. Last year marked the fifth year in a row in which global renewable energy investment exceeded the $300 billion mark.
Innergex stock has climbed 13.4% in 2019 as of close on February 13. Shares have climbed 40% over the past five years. Innergex reported that production jumped 37% year to date in 2018, while revenues rose 40% to $408.2 million. The company is set to release its Q4 and full-year results next week.
Innergex last paid out a quarterly dividend of $0.17 per share. This represents a solid 4.7% yield.
Cronos Group (TSX:CRON)(NASDAQ:CRON)
Millennial investors have been active in the cannabis sector early on. For those who have exercised patience, the last few years have likely been very rewarding. Cronos Group, a Toronto-based integrated cannabis company. Shares have surged 88% in 2019 as of close on February 13.
Cronos Group has generated a lot of excitement ahead of its fourth-quarter results, which are expected to be released in the coming weeks. In the summer of 2018, Cronos inked a deal to supply U.S.-based Cura Cannabis Solutions with 20,000 kilograms of cannabis. Cronos is working to increase its domestic production volumes along with other big producers.
Cronos’s $1.8 billion deal with tobacco giant Altria is reason for confidence in the company going forward. The stock is pricing near all-time highs right now but has demonstrated that it will be a major player in a young and promising global market.
Kinaxis is an Ottawa-based provider of software solutions for sales and operations planning and supply chain management. Shares have climbed 22.5% in 2019 as of close on February 13. The stock is still down 2.4% year over year.
Kinaxis stock took a major hit after the release of its Q3 2018 results in November. The company said that this was due to some late-stage deals slipping out of the quarter, negatively impacting revenue growth. The stock slipped to a 52-week low in late December but has been surging since.
The company is expected to release its fourth-quarter and full-year results for 2018 in late February or early March. Kinaxis’s technology is in high demand, as companies adjust to the rigorous demands of present-day supply chain planning. This stock is still one of the top tech equities on the TSX, and investors should feel comfortable holding into the next decade.
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Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. Kinaxis is a recommendation of Stock Advisor Canada.