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TFSA Investing: 2 Top Dividend Stocks to Buy

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With stocks generally trading lower over the last month, there is some good long-term value to be had. Those focused on TFSA investing can scoop up some stocks with great long-term return potential.

When it comes to TFSA investing, consistent and reliable growth are key. Taking on too many risks can be detrimental over the long run, as TFSA contribution room doesn’t get restored when taking a loss.

While there’s likely to be tough sledding ahead, some blue-chip stocks can still be added now for long-term TFSA investing. These are stocks with reliable growth and strong track records for stability.

Today, we’ll look at two top dividend stocks that are perfect for a TFSA.


Royal Bank of Canada (TSX:RY)(NYSE:RY) is Canada’s largest bank by market cap. The stock has long been a prime example of a reliable dividend-growth stock.

The combined value of its penchant for growth in share price and churning out an attractive yield make it an ideal pick for TFSA investing.

Of course, RY has had its share of challenges to deal with as of late, but it’s shown the resiliency that should be encouraging to long-term investors.

In fact, the stock is already showing signs of a decent recovery with year-over-year quarterly revenue growth back in the positives at 10.1%.

The bank is well capitalized and should be ready to handle any further turbulence ahead. Not to mention, RY has plenty of support and access to liquidity.

As of this writing, this TFSA investing star is trading at $93.63 and yielding 4.61%. That yield far exceeds the five-year average yield and is part of why RY is a decent value now for the long run.

Over time, RY has the potential to deliver great long-term gains inside a TFSA.

TD Bank

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is another major Canadian bank. It’s a multinational bank that offers a multitude of financial products and services to its customers.

Like with RY, and many businesses for that matter, TD has faced a lot of challenges as of late. While it hasn’t yet turned around in the same way RY has, TD has the stability needed to push forward.

That is, investors taking a long-term view generally don’t need to worry about short-term hiccups with a stock as strong as TD.

TD has long been a pillar of reliability for Canadian investors. At its current value, it offers great long-term return potential when it comes to TFSA investing. As of this writing, TD is trading at $60.55 and yielding 5.22%.

This is a stock with a phenomenal track record for paying consistent and ever-growing dividends and for displaying resiliency during trying economic times.

Over the long run, a stock like TD can do wonders for a TFSA investing strategy. Consistent growth in share price coupled with strong dividends and tax savings make for mouth-watering total returns.

TFSA investing plan

Both RY and TD are great picks for a TFSA investing strategy. These are stocks that are well equipped to perform well over the long term in a TFSA.

While there’s plenty of uncertainty in the short term, investors should be able to rely on these stocks in the long run. If you’re looking to add to a TFSA investing plan, give these top stocks consideration.

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 Jared Seguin has no position in any of the stocks mentioned.

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