Retiring early might not be a very difficult goal to accomplish if you start planning at the right time. To achieve your early retirement goal, itâs always a good idea to start saving a part of your monthly income and start investing that money in quality stocks for the long term. If you havenât yet started doing so, it still might not be too late, as the ongoing economic recovery could drive some reliable TSX stocks higher — the banking sector.
Investing in such Canadian stocks now could help you meet your early retirement goal fast, as they could witness a sharp rally in the coming months and grow your invested money much quicker than you think. In this article, Iâll highlight two such TSX stocks to buy now.
Bank of Nova Scotia stock
Bank of Nova Scotia (TSX: BNS)(NYSE: BNS) is the first stock in my list of top Canadian stocks to grow your savings for early retirement. The Toronto-based banking sector giant currently has a market cap of about $107.3 billion, as its stock trades with 1.5% year-to-date losses at $89.07 per share.
The ongoing growth trend in Scotiabankâs financials looks impressive, as its earnings have recovered sharply in the last few quarters after COVID-19-driven costs and operational difficulties drove them down in 2020. Interestingly, the bank has consistently been beating analystsâ earnings estimates for the last six quarters in a row.
As the post-pandemic era economic recovery continues, its earnings growth is likely to remain strong in the ongoing fiscal year as well. Moreover, Scotiabankâs strong dividend yield of around 4.6% could help you get extra income and meet your early retirement goals fast.
TD Bank stock
Toronto-Dominion Bank (TSX: TD)(NYSE: TD) could be another great TSX banking sector stock to buy now to grow your hard-earned money for early retirement. Just like Scotiabank, TD Bank stock hasnât seen much appreciation lately, despite its faster-than-expected financial recovery in the last few quarters. This Canadian bank currently has a market cap of about $181 billion, as it trades with minor 3% year-to-date advances at $99.47 per share.
TD Bankâs total revenue has been exceeding Street analystsâ expectations for the last three quarters in a row with the help of consistent revenue growth across its business segments. More importantly, its adjusted earnings have been beating estimates for the last seven quarters. For the last couple of years, TD Bank has been striving to meet its customersâ evolving needs by making heavy investments in technology and new capabilities. This move should help it maintain its strong earnings-growth trend intact in the long term.
Its handsome 3.6% dividend yield also makes TD Bank stock worth investing in now — especially for investors willing to hold stocks for the long term as a part of their plan to retire early. This Canadian banking giantâs robust balance sheet allows it to keep rewarding investors with attractive dividends, even in difficult economic times.
