Users enjoy tax-free money growth when they contribute to their Tax-Free Savings Accounts (TFSAs) every year. The annual TFSA dollar limit in 2022 is $6,000, or the same as the last three years. However, if you’re contributing to the TFSA for the first time and have been over 18 since 2009, the new lifetime contribution is $81,500.
TFSA investors eligible to deposit the full amount can purchase three top TSX stocks to form a profitable dividend portfolio.
Anchor TFSA holding
Pembina Pipeline (TSX: PPL)(NYSE: PBA) is a significant player in the oil & gas midstream industry. The $20.68 billion company transports hydrocarbon liquids and natural gas products produced in Western Canada. It also owns oil & natural gas liquids infrastructure, operates gas gathering & processing facilities, and engages in logistics.
The operations that include a full slate of midstream and marketing services cover the entire hydrocarbon value chain of the energy industry. Pembina is a member of the S&P/TSX 60 Index, and this energy stock boasts a track record of profitable growth and provides highly competitive dividends to investors.
According to management, the business model is low to moderate risk. Moreover, its robust portfolio of new opportunities should enhance the long-term value of Pembina shares. Besides the generous yield, this energy stock pay dividends every month. TFSA balances will compound faster as users can reinvest dividends 12 times a year. The share price is $40.61, while the yield is 6.14% if you invest today.
Pure-play industrial REIT
Nexus (TSX: NXR.UN) will celebrate its first anniversary on the TSX on February 4, 2022. As of January 18, 2022, the share price is $11.74, or a 48.6% gain from its market debut. The $672.70 million real estate investment trust (REIT) pays a lucrative 5.49% dividend.
This growth-oriented REIT owns high-quality industrial (66%), retail (21%), and office (13%) properties. Its CEO, Kelly Hanczyk, said 2021 was a very active year for the REIT because its industrial portfolio grew significantly. Hanczyk adds, “This growth and our planned further industrial acquisitions are pushing us closer to becoming Canada’s next pure-play industrial REIT.”
On January 19, 2022, Hancyzk announced the intention to change the REIT’s name to Nexus Industrial REIT. Nexus has been industrial-focused from the start and mainly acquired industrial properties. Management feels the new name reflects the nature of the current portfolio and its strategy of being a pure-play industrial REIT.
Portfolio stabilizer
A consumer staple stock like Rogers Sugar (TSX: RSI) is a portfolio stabilizer. Apart from the absurdly cheap price ($6.03 per share), the dividend yield is 5.97%. Sugar is a low-growth business but it is enduring. The $627.31 million sugar and maple producer operates in a duopoly, so there’s hardly competition in the domestic market.
Currently, the geographic distribution of the business is as follows: Canada (75%), U.S. (18%), Europe (3%), and others (4%). In fiscal 2021 (year ended October 2, 2021), Rogers delivered a record 779,500 metric tons of sugar, while the maple segment’s adjusted EBITDA increased 22% versus 2020.
For fiscal 2022, management expects domestic sales to return to a more traditional mix and export sales to return to pre-pandemic levels.
Other salient TFSA features
TFSA users should know that the tax agency indexes the dollar limits to inflation. Also, if you fail to contribute in any given year, your contribution room does not disappear.
