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TFSA Investors: 2 of the Best Canadian Stocks to Buy on the TSX Today

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Now is the time to meet that new Tax-Free Savings Account (TFSA) limit if you haven’t already. Canadians were given another $6,000 of contribution room towards their TFSA in 2021. That leaves plenty of options open to secure your finances in a volatile market. The TSX today is a scary place, but it doesn’t have to be. Not with stable stocks like these.

Canadian Utilities

One of the best sectors you can get into right now is utilities. This area has a cash stream of stable revenue that continues to produce year after year. Canadian Utilities (TSX:CU) is one of the safest options on the TSX today, and that includes its dividends.

The company has been acquiring businesses in every area of power from pipelines to renewable energy. This has created a diverse portfolio Canadians investors should really appreciate. On top of that, it has the longest streak of growing its dividend on the TSX today at a whopping 49 years. That brings it to just shy of Dividend King status, where companies must reach the 50-year mark.

Shares are still down 15% as of writing from where they were one year ago. But this just means the stock trades at a discount. If you want stability in today’s volatile market, going with a utility company like Canadian Utilities is a solid option.

Kinaxis

Just because you want stability doesn’t mean you have to go boring, however. That’s where tech stock darling Kinaxis (TSX:KXS) comes into play. The Software-as-a-Service (SaaS) company provides supply chain management of data for enterprise companies around the world. It continues to bring in incredibly large clients, none of which take up more than 10% of its portfolio.

So, again, we have a stable company that continues to bring in solid revenue. In fact, if you look at its revenue growth, you wouldn’t even know a downturn happened. The company recently reported year-over-year revenue growth of 30%! In the last year, shares are up 66% as of writing and 296% in the last five years. It’s not exorbitant, but that means there is still room to grow. This stock is certainly a solid option to consider to hold on and not let go for decades.

Foolish takeaway

Let’s say you were to look at the last five years as a guide for where these stocks could get you. You put $3,000 into Canadian Utilities and $3,000 into Kinaxis. Growth remains stable at the same rates they have been the last three years. You don’t contribute any more to the stocks, but you do manage to put the dividends back into your investments.

Should you hold on for another five years, your $6,000 investment could turn into $35,486.87 if the same growth rates apply! Now, of course, there are a lot of other factors to consider. But this gives you a strong idea of what your small investment could do. So, don’t wait around, add these to your watch list and do your own research to figure out if Kinaxis and Canadian Utilities belong in your portfolio.

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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 Amy Legate-Wolfe owns shares of KINAXIS INC. The Motley Fool recommends KINAXIS INC.

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