The Motley Fool

2 Must-Own TSX Stocks to Triple Your TFSA Money in 2021

Image source: Getty Images

The market has seen extraordinary volatility in the last year. While the COVID-19-related restrictions affected many businesses worldwide, remarkable growth in some companies from the tech and e-commerce sectors drove a solid market recovery later last year. When you’re picking stocks to buy and hold in your Tax-Free Savings Account (TFSA), it’s wise to balance your risk by adding some growth tech stocks and some large-cap stocks to it.

TFSA investors must buy these stocks

Canadian investors have a huge advantage in maximizing their savings by properly managing their TFSAs. The Canada Revenue Agency (CRA) decides the TFSA contribution room each year. While the CRA increased the annual TFSA limit from $5,500 in 2014 to $10,000 in 2015, the limit was reduced in 2016 to $5,500 again.

The limit saw another push from CRA to $6,000 per year in 2019. Since then, it has remained at this level. This means the annual TFSA contribution limit for 2021 also remains at $6,000.

Grow your TFSA money

After making this contribution comes a bigger challenge of managing your money, helping it grow but ensuring safety at the same time. If you’d bought the shares of Canadian software giant BlackBerry (TSX:BB)(NYSE:BB) at the beginning of 2021, your investment would have grown to $13,374 by today (within a month). And the great thing is that you wouldn’t have to pay any taxes on the money you earn by investing in stocks using your TFSA.

BlackBerry stock has remained in the news in the last month. Many experts claim that its recent rally lacks much fundamental basis. However, this stock has been on my radar for the last couple of months. I found its recently increased efforts to benefit from the fast-growing electric vehicle and smart mobility market really interesting. That’s the reason why I have been suggesting buying its stock since December.

While I still find BlackBerry’s stock amazing long term buy for TFSA investors, its recently increased extreme volatility makes it a risky stock to trade for short-term investors.

A great TSX stock to buy in your TFSA today

Now, let’s take a look at another amazing TSX stock that seems to be trading below its fair value at the moment. You may want to add it to your TSFA stock portfolio today and hold it as long as you want for amazing returns on your investments.

Imperial Oil (TSX:IMO)(NYSE:IMO) is the second-largest Canadian integrated oil firm. The company mainly makes its revenue from crude oil and natural gas production. Texas-based ExxonMobil Corp owns nearly 70.5% of Imperial Oil.

Imperial Oil announced its fourth-quarter and full-year 2020 results on Tuesday. Its 2020 revenue fell by 34% — with an adjusted net loss of $385 million. The global pandemic resulted in extremely low energy demand last year, hurting its sales and profitability.

On the positive side, Imperial Oil has reported net profitability in the last couple of quarters, setting a stage for a much better 2021. This is one reason why Street analysts expect its 2021 sales to jump by 36% and the company to report $805 million in profits for the year.

The global energy demand is already recovering at a faster than expected pace. That’s why I expect Imperial to beat analysts’ estimates in 2021. These factors could start a medium- to long-term rally in its stock. Its stock also offers a 3.5% dividend yield, making it more attractive and safer for TFSA investors.

Foolish takeaway

While you might have missed many investment opportunities in the past, if you act today, you still have a chance to multiply your TFSA savings in no time. Adding these two stocks to your TFSA portfolio would be a balanced approach towards getting great returns on your investment.

Looking for even BETTER CHEAP GROWTH STOCKS? Here’s a FREE LIST for you:

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

The Motley Fool recommends BlackBerry and BlackBerry. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.