3 Ways to Double Your $10K TFSA in 2020 (Without Being Dumb)

Tired of declines? This trio of momentum stocks, including National Bank of Canada (TSX:NA), might have the rocket fuel you need.

edit Close-up Of A Piggybank With Eyeglasses And Calculator On Desk

Image source: Getty Images

Hi there, Fools. I’m back to quickly highlight three stocks trading at new 52-week highs. Why? Because after a given stock rallies over a short period of time, one of two things usually happens:

While momentum stocks are on the fickle side, they can often rally higher (and for longer) than you might expect. So, if you’re looking to double your TFSA in 2020, this list might be a good place to begin.

Let’s get to it.

Bankable bet

Leading off our list is financial services company National Bank of Canada, whose shares are up 17% over the past year and are trading near 52-week highs of about $71 per share.

National Bank’s outperformance continues to be fueled by its leadership position in Quebec, impressive scale (total assets of $276 billion), and highly stable cash flows.

In the most recent quarter, income increased 7% as revenue improved 5% to $891 million. More importantly, the company’s capital and leverage ratios remained healthy.

“Each business segment contributed to earnings growth, helping the Bank to post solid performance in the third quarter of fiscal 2019,” said CEO Louis Vachon.

National Bank shares offer a solid dividend yield of 3.8%.

Feeling healthy

Next up, we have pharmaceutical company Bausch Health Companies, which is up about 30% over the past year and currently trades near 52-week highs of $44.50 per share.

Bausch’s market-leading product portfolio, diversified revenue stream (pharmaceuticals, medical devices, OTC products), and potent pipeline should continue to drive solid gains in 2020. In the most recent quarter, EPS of $1.19 topped expectations by $0.10 as revenue improved 3% to $2.2 billion.

“In the third quarter, Bausch Health delivered another strong quarter with both reported and organic revenue growth, demonstrating that our efforts to grow our core businesses are continuing to gain traction,” said Chairman and CEO Joseph Papa.

Bausch Health shares currently trade at a forward P/E of 6.3.

Silver surfer

Rounding out our list is silver miner Silvercorp Metals, whose shares are up a massive 160% over the past year and trade near 52-week highs of $6.80 per share.

Silvercorp’s massive gains continue to be supported by strong metals prices, extremely low production costs, and a rock-solid balance sheet. In the most recent quarter, EPS of $0.07 topped estimates by $0.03 on revenue improvement of 4%. Silvercorp also generated operating cash flow of $26 million, up 24% from the year-ago period.

More importantly, management only expects things to get better.

“The company expects its consolidated production in fiscal 2020 will exceed its annual guidance and that production costs will be within the budget,” wrote the company.

Silvercorp currently trades at a forward P/E of 29.

The bottom line

There you have it, Fools: three red-hot momentum stocks worth checking out.

As always, they aren’t formal recommendations. Instead, look at them as a starting point for further research. Momentum stocks are especially fickle, so plenty of your own due diligence is required.

Fool on.

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 Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of and recommends Bausch Health Companies.

More on Dividend Stocks

consider the options
Dividend Stocks

Is TD Bank the Best Dividend Stock for You?

Toronto-Dominion Bank (TSX:TD) has a high dividend yield but is embroiled in a serious money-laundering scandal.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

How to Use Your TFSA to Earn $6,000 Per Year in Passive Income

Hint: You'll need this Hamilton covered call ETF, which yields over 10%.

Read more »

Growth from coins
Dividend Stocks

2 Dividend-Growth Stocks With TSX-Beating Potential That Deserve More Respect

Here are two of the best TSX dividend-growth stocks you can buy today and hold for the next decade.

Read more »

Man pointing at a recycling symbol
Dividend Stocks

GFL Stock Rose 24% Last Month: Is It Still a Buy in July?

GFL stock (TSX:GFL) exploded by 24% in June, but is the growth now over for July? Or can investors still…

Read more »

A woman shops in a grocery store while pushing a stroller with a child
Dividend Stocks

Better Buy: Loblaw Stock or Metro Stock?

Loblaw (TSX:L) and another grocer that could do well over the long haul as markets get rocky.

Read more »

concept of real estate evaluation
Dividend Stocks

BRE Stock: Should You Buy the 10.5% Yield?

BRE stock (TSX:BRE) offers investors the opportunity for a rebound in a real estate sector that should see high prices…

Read more »

dividends grow over time
Dividend Stocks

Prediction: These Could Be the Best-Performing Value Stocks Through 2030

Seeking value stocks trading at a discount? These top value stocks could outperform through 2030 through valuation expansion.

Read more »

Dividend Stocks

3 TFSA Hacks to Build a $1 Million Tax-Free Nest Egg

These TFSA investing hacks could help convert $95,000 into $1 million tax-free. Here's how to get started.

Read more »