3 TFSA Stocks to Buy Now and Earn Higher Yields

If you want to buy stocks for your TFSA, this is a good time to make that decision, as you can get much higher yields.

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With North American markets recovering after the pandemic-induced sell-off, it’s a good time to buy some quality dividend stocks for your TFSA.

Despite the quick rebound that came soon after the March plunge, you can still find dividend stocks from Canada that are selling cheaply and whose yields are attractive.  

Today, I’ve put together a list of three TFSA stocks that you can buy now. These stocks are well suited for low-risk and long-term investors. 

Bank of Nova Scotia

It becomes highly tempting to buy banking stocks when their dividend yields swell. Banks are considered among the safest stocks that will likely continue to pay dividends even during a recession. Their strength comes from their strong balance sheets, less-risky lending practices, and diversified revenue streams.  

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is one such stock I’d recommend to TFSA investors to buy now.  At $56.74 a share, BNS stock yields 6.31%.

The third-largest lender by the market size is fast recovering its lost ground after the pandemic-induced sell-off. During the past three months, it has gained more than 13% on signs that the lender is well positioned to weather the current downturn.

Over the long run, Scotiabank has proven to be a good stock to buy with its growing payouts. The lender has returned cash to investors every year since 1832, and it has hiked its payouts in 43 of the last 45 years. Scotiabank pays a $0.90-per-share quarterly dividend.

Enbridge

Canada’s largest pipeline Enbridge (TSX:ENB)(NYSE:ENB) is another top candidate for your TFSA. Utility stocks are defensive in nature, meaning they can weather any economic downturn better than other businesses.

Enbridge provides gas and electricity to consumers in both the U.S. and Canada, runs the largest pipeline network to ship energy products in the region. It also manages some of the largest storage facilities. These assets produce consistent cash flows, because their clients are on long-term contracts.

During the past two years, Enbridge has also accelerated its restructuring plan: it’s selling assets, focusing on its core strengths, and paying down its debt. These measures are likely to benefit long-term investors whose aim is to earn steadily growing cash.

The company pays a $0.81-a-share quarterly dividend with an annual dividend yield of 7.65%. 

Rogers Communications

Rogers Communications (TSX:RCI.B)(NYSE:RCI) is another attractive dividend stock to buy now for your TFSA portfolio. 

Rogers is Canada’s second-largest telecom company, with the largest market share of the country’s growing wireless segment. Rogers drives about 60% of its revenue from the wireless segment, 26% from its cable division, which includes high-speed internet, information technology, and telephony services to consumers and businesses, and the rest from its vast media assets.

With this strong market share, Rogers is well positioned to deploy 5G technology, which will fuel more growth. It has partnered with mobile telecom equipment maker Ericsson for 5G trials in Toronto and Ottawa, among other cities.

The company currently offers an annual dividend yield of 3.5% with the quarterly dividend payout of $0.5 a share. 

Bottom line

Buying solid dividend stocks like the ones I have recommended will boost your TFSA income. These stocks’ growing dividends will make your portfolio cash rich — cash you can use to buy more shares.

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 Haris Anwar owns Enbridge stock. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends BANK OF NOVA SCOTIA and ROGERS COMMUNICATIONS INC. CL B NV.

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