3 Stocks That Are Perfect for Your TFSA

Shaw Communications Inc (TSX:SJR.B)(NYSE:SJR) and these two other stocks provide investors with great dividend yields of more than 3% per year.

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If you’ve got room in your TFSA and are looking for stocks to put in it, the good news is I’ve got three solid investments that you could buy right now that will provide you with some great yields.

Atco Ltd (TSX:ACO.X) is a good, safe choice for investors who aren’t looking to take on much risk. While the stock has been volatile over the years, it has risen more than 20% so far in 2019.

The utility company is a very stable investment, which is evidenced by looking at its sales over the past four quarters, as revenues have been within a very tight range of $1.1 billion to $1.4 billion. Meanwhile, profits have also been consistent, witnessing $112 million in each of the past four reporting periods.

It’s certainly a stable stock, but what makes Atco an even better buy is its dividend, which pays a modest and a safe yield of 3.4%. While investors could certainly find higher-yielding options, Atco has grown its dividend over the years, an added bonus.

If it continues raising its payouts, investors that buy today will be earning more on their original investments in future years.

Gibson Energy Inc (TSX:GEI) doesn’t have as good a track record of growing its payouts as Atco does, but the stock makes up for it with a higher yield today. Currently, the stock is paying its shareholders 5.6% in dividend payments every year.

That’s definitely above average, and even a stock like Atco won’t come close to that anytime soon even if it continues raising its dividend — barring a significant increase of course.

Similar to Atco, Gibson has done very well this year, with year-to-date returns for the stock coming in at around 25%. The oil and gas stock is a bit of a riskier option for investors because of its industry, but the company has done a great job of staying in the black for the past two years and is looking to be in good shape to continue that trend in 2019 as well.

With oil and gas looking more stable than it has in recent years, this could be a great opportunity for investors to lock-in this high yield before the stock climbs further in price.

Shaw Communications Inc (TSX:SJR.B)(NYSE:SJR) offers TFSA investors a good mix of both growth and dividends. With a yield of 4.4%, it comes in higher than Atco’s payout but less than Gibson’s. The trade-off, however, is that Shaw can offer some appealing upside without much risk.

Ever since the company has gotten into the wireless market, there’s been a great opportunity for Shaw to unlock significant sales growth. While we have seen some modest growth from the company with sales in 2018 rising by over 7%, Shaw could achieve much more once Freedom Mobile becomes much more of a competitor.

The company is currently still working on building the network and making the brand much more of an appealing option for consumers. If it can steal away price-conscious consumers away from some of the bigger brands, we could see Shaw’s sales start to take off.

The potential growth along with the solid dividend makes Shaw an ideal stock to put in a TFSA.

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 David Jagielski has no position in any of the stocks mentioned.

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