TFSA Investors: 3 Top Stocks to Hold in Your TFSA

Are you looking to invest for your new $6,000 TFSA contribution limit for 2022? Consider buying and holding these three top TSX stocks.

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Stocks often take turns outperforming. So, it’s a good idea to maintain a diversified portfolio for retirement. Tax-Free Savings Account (TFSA) investors who are looking for stocks to hold in their TFSAs can consider the following group of stocks that has a good mix of growth, dividends, and value.

Shopify stock

Shopify (TSX:SHOP)(NYSE:SHOP) provides a commerce platform and services to make it easier for anyone to start, operate, and grow their business. It has continuously innovated, which is essential in the fast-changing world of technology in commerce. Merchants that are growing their businesses rapidly can feel reassured with the scalable capabilities of the platform.

Along with the broader growth stock market, Shopify stock has corrected about 34% from its 52-week and all-time high. The arrival of the new TFSA contribution limit of $6,000 this year could be perfect timing to buy the dip in the tech stock.

In December 2021, on BNN, David Driscoll provided insights on Shopify stock:

“We started buying Shopify at $38. We have a rule of thumb that every time the stock doubled, we would sell half. We’ve been doing this all along the way. We just saw the stock drop 25% over two months. A Bloomberg article came out about Amazon versus Shopify. Amazon dropped the ball in the early days, which allowed Shopify to take over small- and medium-sized businesses and took advantage of it through COVID in March of 2020. Amazon decided it wanted to get back into the game. Shopify has a decision to make — do they want to provide last-mile service, which is what Amazon does with their trucks and warehouses? It’s going to be a battle. Given the stock is trading at 359 times earnings, you’re going to get a lot of volatility over the next few years until the dust settles.”

David Driscoll of Liberty International Management

Ultimately, Driscoll suggested investors be cautious, and if they like Shopify, consider dollar-cost averaging into a position. If Shopify stock is too much of a roller-coaster ride for you, you might turn to Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP) instead.

Brookfield Infrastructure stock

BIP is a proven dividend-growth stock. This means that no matter if the dividend stock goes up or down, investors can still receive predictable dividends. The utility has increased its cash distribution for 14 consecutive years, which is impressive. The long-term dividend-growth streak is supported by its sustainably growing cash flow. Currently, approximately 90% of its cash flow is regulated or contracted, making it highly predictable.

The global infrastructure company is diversified across sectors and geographies. It owns utility, transport, midstream, and data infrastructure assets. Its midstream assets are in North America, while it has assets of all four sectors in North and South America, Europe, and Asia Pacific.

At writing, the dividend stock yields 3.4%. Management aims to increase its cash distribution by 5-9% per year!

Manulife stock

Unlike Shopify stock, which could be a cheap growth stock right now, Manulife (TSX:MFC)(NYSE:MFC) is a value stock in the traditional sense. Manulife stock has a low price-to-earnings ratio of approximately eight, while analysts believe it can at least grow its earnings per share by 8% annually over the next few years.

Additionally, the life and health insurance company should benefit from a rising interest rate environment. Throwing its 5.1% dividend yield in the mix, there’s low risk in holding the value stock in the TFSA. Notably, Manulife stock is also a Canadian Dividend Aristocrat with eight consecutive years of dividend growth.

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.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool owns and recommends Shopify. The Motley Fool recommends Amazon and Brookfield Infra Partners LP Units. Fool contributor Kay Ng owns shares of Amazon, Brookfield Infrastructure, Manulife, and Shopify.

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