The Tax-Free Savings Account (TFSA) is a gift that keeps on giving. TFSA investing with the right assets can help you achieve various short- and long-term financial goals. The TFSA is a tax-advantaged account designed to encourage better savings practices.
However, using your TFSA contribution room to invest in and hold high-quality stocks with long-term growth potential can help you make the most of your investment returns. With all the volatility in the stock market right now, Canadian investors have a few great buying opportunities for their TFSAs.
Today, I will discuss two TSX stocks that are at least worth having on your radar, if not already in your TFSA investment portfolio.
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Brookfield Asset Management
Brookfield Asset Management Inc. (TSX:BAM.A)(NYSE: BAM) is a $112.99 billion market capitalization alternative investment management company headquartered in Toronto. Brookfield Asset Management stock could make for an excellent stock to invest in and hold in a TFSA. The company manages a broadly diversified portfolio of alternative assets like infrastructure, renewable energy assets, insurance, real estate, and much more.
It is a high-quality stock that boasts solid long-term growth potential. Investing in the stock offers you exposure to the performance of a business that enjoys returns from several sectors of the economy. At writing, Brookfield Asset Management stock trades for $72.15 per share, and it boasts a 0.99% dividend yield.
Canadian National Railway
Canadian National Railway (TSX: CNR)(NYSE: CNI) is another high-quality stock you could consider as a long-term holding in a TFSA. CN Railway is a $109.77 billion market capitalization railway company headquartered in Montreal. It owns and operates an extensive railway network responsible for transporting a significant portion of freight cargo throughout North America, and it enjoys a solid competitive moat.
Typically considered a stock that provides meagre returns through capital gains, CN Railway is gearing up for a stronger future. The company has signed a new CEO with a vision to take the company forward for a more profitable future. CN Railway stock trades for $156.43 per share at writing, and it boasts a 1.87% dividend yield. The stock is down by 6.61% from its October 2021 highs, making it a good opportunity for you to buy CN Railway stock for a discount.
Foolish takeaway
The TFSA is a haven for investors who want to keep more of their investment returns without worrying about moving to a higher tax bracket. It is essential to ensure that you avoid making any TFSA mistakes that could result in compromising your account’s tax-free status, like overcontributing to your account.
If you have the contribution room available and savings set aside to use as investment capital, Brookfield Asset Management stock and CN Railway stock could be excellent investments for long-term wealth growth in your TFSA.
