TFSA: 3 TSX Stocks to Buy With the Added $6,000

Canadians should look to add stocks like goeasy Ltd. (TSX:GSY) with the $6,000 in added TFSA room in 2021.

| More on:
TFSA and coins

Image source: Getty Images

Last year, the Government of Canada revealed that the Tax-Free Savings Account (TFSA) limit would be $6,000 in 2021. That moves the cumulative contribution room in a TFSA to $75,500 for those who have been eligible since its inception in January 2009. Some investors may have hoped for a larger increase. However, $75,500 is still a nice chunk of room to work. Today, I want to look at three stocks that you should consider adding with that extra $6,000. Let’s dive in.

One dividend stock to add to your TFSA

In our hypothetical, we’ll look to spend roughly $2,000 on each of our three stocks. goeasy (TSX:GSY) is the first equity I want to look at today. This Mississauga-based company provides loans and other financial services to consumers across the country. During the March market bloodbath, I’d suggested that goeasy was one of the best stocks to buy on the dip. Shares of goeasy have climbed 35% year over year as of close on January 12.

Investors can expect to see goeasy’s fourth-quarter and full-year results for 2020 in February. Its loan portfolio posted 14% growth in Q3 2020, and adjusted diluted earnings per share rose 56% to $2. TSFA investors should be excited about goeasy’s growth potential going forward. Moreover, it qualifies as a Dividend Aristocrat. It has delivered six consecutive years of dividend growth.

goeasy stock possesses a favourable price-to-earnings (P/E) ratio of 15. This stock is perfect for a TFSA for the long term.

Two more exciting stocks to stash in your portfolio

Finning International (TSX:FTT) is the second stock TFSA investors should consider in the middle of January. This Vancouver-based company is engaged in selling, servicing, and renting heavy equipment, as well as power and energy systems in Canada and around the world. Its shares have climbed 35% over the last three months as of close on January 13. This scorching stock is perfect for a TFSA in 2021.

Commodities have gained momentum on the back of a global economic recovery, even as nations continue to wrestle with the COVID-19 pandemic. Finning has been a beneficiary of this uptick. In Q3 2020, the company saw earnings per share increase 17% from the prior year to $0.54. Profitability improved in Canada from the second quarter, despite a slow recovery.

Finning stock last had a solid P/E ratio of 22 and a price-to-book value of 2.2. It offers a quarterly dividend of $0.205 per share, representing a 2.7% yield. Improving commodity prices should drive TFSA investors into the arms of this balanced equity.

Goodfood (TSX:FOOD) is the last stock I want to look at for TFSA investors today. This online grocery company has erupted during the COVID-19 pandemic. Canadians under heightened restrictions and lockdowns have looked for alternatives in the grocery space. Shares of Goodfood have climbed 328% year over year as of close on January 12. The pandemic may be in the rear-view mirror by the end of 2021, but grocery delivery services will be here to stay.

The company released solid first-quarter results this morning. Revenues rose 62% from the prior year to $91.4 million. Meanwhile, Goodfood achieved a positive EBITDA, as active subscribers increased 33% to 306,000. TFSA investors on the hunt for explosive growth should consider this exciting TSX stock in January.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends FINNING INTL and Goodfood Market.

More on Investing

A worker gives a business presentation.

3 TSX Stocks That Are Actually Beating the Market

Dependable TSX stocks like Hydro One Ltd. (TSX:H) and Loblaw Companies Ltd. (TSX:L) have beaten the TSX in a harsh…

Read more »

analyze data
Dividend Stocks

Got $250? Here Are 3 Smart Stocks to Buy Now

Are you looking for some smart stocks to buy? Here are three options that offer growth and income that you…

Read more »

Maxar Technologies
Tech Stocks

2 Incredible Deals for Your TFSA Today

Investing in MDA Ltd. (TSX:MDA) could increase capital gains in a TFSA account, and here's one REIT to boost tax-free…

Read more »

Profit dial turned up to maximum
Dividend Stocks

2 TSX Stocks to Buy With Dividends Yielding More Than 3%

These two TSX stocks offer ultra-high dividends and, more importantly, stability towards a solid future of passive-income payments.

Read more »

Happy shoppers look at a cellphone.

Millennials: 3 TSX Stocks to Buy on the Dip

Millennial investors navigating this volatile market should look to snatch up promising TSX stocks like Capital Power Inc. (TSX:CPX).

Read more »

Online shopping
Tech Stocks

Rebound Rockets: 2 TSX Tech Stocks to Buy Before They Soar

Beaten-down TSX stocks such as Lightspeed and Shopify should be on the top of your shopping list given they remain…

Read more »

Female hand holding piggy bank. Save money and financial investment
Dividend Stocks

Passive Income: 3 Top TSX Stocks That Pay Dividends Monthly

Given their high yields, attractive valuations, and stable cash flows, these three TSX stocks are excellent buys for income-seeking investors.

Read more »

stock research, analyze data
Tech Stocks

3 No-Brainer U.S. Stocks for Canadian Investors

Tech stocks may not seem like the best option right now, but these U.S. stocks are simply no-brainers in this…

Read more »