The Canadian Pension Plan will likely not be sufficient for most citizens to retire and maintain the same standard of living. Fortunately, returns earned in a Tax-Free Savings Account (TFSA) are not taxed by the Canada Revenue Agency.
So, don’t stress about how you will retire on little savings and substantial debt. Instead, buy top TSX stocks to take charge of your retirement goals. If you don’t know where to invest your savings in the stock market, you can easily learn how to buy shares in top-performing TSX stocks.
There are many excellent stocks with above-market-average price performance that will help you grow your wealth in Canada. You can begin investing in the stock market for as little as $100 per month. You are sure to generate satisfying market returns as long as you take a long-term view of your investments.
With only 15 minutes devoted to research every month, you can begin learning how to make high-yield decisions in the stock market. Two great market-moving stocks to buy right now are Cargojet (TSX:CJT) and Ceridian HCM Holding (TSX:CDAY)(NYSE:CDAY).
Better stock price performance than the S&P/TSX Composite Index
The past few years have been good to shareholders of Cargojet and Ceridian. The prices on these stocks have increased faster than the S&P/TSX Composite Index.
Cargojet
Cargojet is a domestic overnight air cargo firm connecting 14 Canadian cities with the U.S. and Bermuda.
The cargo industry in Bermuda is popular for many reasons. Ports inspect Bermuda-registered shipping vessels less frequently than others. Moreover, companies are not subject to exchange controls, income taxes, or capital gains taxes in Bermuda.
In the past year, the price of Cargojet stock has increased by nearly 50% to $109.24, and it has a market capitalization of $1.48 billion at the time of writing. By comparison, the S&P/TSX Composite Index has only appreciated by 15.76%.
Canadians interested in purchasing shares of this stock will be happy to know that the profit margin is positive at 4.67% with a return on equity of 14.00%. The downside is the levered free cash flow of negative $76.33 million; still, with a quarterly earnings growth of 151.10%, this stock is going places on the Toronto Stock Exchange.
Ceridian HCM Holding
Ceridian HCM Holding provides cloud-native payroll software to midrange companies through its Dayforce platform.
This stock beat out both Cargojet and the S&P/TSX Composite Index last year with the majority of its price gains occurring at the end of 2019. Today, the stock trades for an expensive $94.75 per share at a market capitalization of $13.58 billion. Like many technology companies, Ceridian is overpriced at a price-to-earnings ratio of 183.02, but that doesn’t necessarily mean you should avoid this stock.
The profit margin is a positive 9.38% with a low difference between the operating margin of 11.29%, indicating low financing costs. The levered free cash flow is also a positive $7.28 million, which means that the stock still generates returns for shareholders after repaying debt holders.
The drawback to Ceridian stock is the low return on equity of 5.09%. Despite this, the outstanding quarterly earnings-growth rate (year over year) of 1,392.90% makes this stock well worth the price.
