Many beginner TFSA investors are likely feeling the jitters about getting started in investing. There are a lot of things to be worried about in this pandemic-plagued environment, such as COVID-19 variants of concern, the worst recession since the Great Depression, and the potential for an unchecked rise in inflation. It’s the latter risk that I believe should entice new TFSA investors to get started today, rather than attempting to get in at the bottom of the next stock market crash.
There has been an alarming amount of market crash or correction predictions of late. But as a beginner, please do take such projections with a very fine grain of salt. Nobody, not even Warren Buffett or the greatest economist on the planet, can time the stock market over the near term.
Warren Buffett knows that markets tend to go higher over the long term, so don’t count on him to make any rash decisions in anticipation of a vicious sell-off. While he may trim risk, trim winners, and rebalance to raise cash, don’t ever count on the man to make moves based on short-term projections. He’s all about the long term and is not influenced by the short-term noise that near-term traders seek out.
Beginner TFSA investors: Get started investing when you can
Timing the bottom of the next market crash is far easier said than done. There’s no bell that goes off when we hit market bottom. It didn’t go off in the depths of March 2020, and it’s not going to ring the next time Mr. Market pulls the rug from underneath investors. So, keep this in mind and take a page out of Warren Buffett’s book by having more of a bottom-up approach to investment. Scoop up the bargains as you see them and sell stocks that you no longer believe in.
In this piece, we’ll have a look at one great dividend stocks to start your TFSA growth fund. The COVID-hit name, I believe, is cheap and is a top pick regardless of what anybody thinks the market will do tomorrow, next week, next month, or next quarter.
Restaurant Brands International: A dividend juggernaut at a discount
I view Restaurant Brands International (TSX:QSR)(NYSE:QSR) stock as one of the better ways to punch your ticket to outsized gains in an economic reopening. The restaurant kingpin behind Tim Hortons, Burger King, and Popeyes Louisiana Kitchen has been up against it of late, thanks in part to extremely sluggish numbers at the former two brands, which, unfortunately for shareholders, comprise an overwhelming majority of QSR’s total earnings.
The COVID-19 pandemic has weighed heavily on Tim Hortons in particular, as shut-in Canadians skipped their morning routine of daily double-doubles and a breakfast sandwich. QSR has lost ground to its peers amid the pandemic, but modernization efforts should close the gap between it and some of its bigger brothers in the fast-food space.
The Foolish takeaway for TFSA dividend investors
QSR stock has a bountiful 3.6% yield and huge turnaround potential. Over the next 18 months, I expect to see a comeback brewing at Tim Hortons as part of an economic reopening. In addition, I think strength across all banners could be in the cards, as the firm’s drive-thru modernization efforts begin paying dividends.
Speaking of ample upside, you need to check out these following stocks curated by the team here at the Motley Fool Canada!
Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.
Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.
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 Joey Frenette owns shares of RESTAURANT BRANDS INTERNATIONAL INC. The Motley Fool recommends RESTAURANT BRANDS INTERNATIONAL INC.