Early Retirement: 2 TSX Stocks to Help You Meet Your Financial Goals

Buying these two TSX stocks could help you grow your savings fast for your early retirement goal.

| More on:
Early retirement handwritten in a note

Image source: Getty Images

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, it’s 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 haven’t 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, I’ll 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 Scotiabank’s 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 analysts’ 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, Scotiabank’s 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 hasn’t 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 Bank’s total revenue has been exceeding Street analysts’ 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 customers’ 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 giant’s robust balance sheet allows it to keep rewarding investors with attractive dividends, even in difficult economic times.

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.

The Motley Fool recommends BANK OF NOVA SCOTIA. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Stocks for Beginners

edit Sale sign, value, discount
Stocks for Beginners

These 3 Growth Stocks Are on Sale and Set to Surge

Some growth stocks are on sale right now that offer massive long-term potential for investors. Here's a trio to consider…

Read more »

Plane on runway, aircraft
Stocks for Beginners

Up 53% From its 52-Week Low, Is Cargojet Stock Still a Buy?

Cargojet (TSX:CJT) stock is up a whopping 53%, nearing closer to 52-week highs from 52-week lows, so what's next for…

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

potted green plant grows up in arrow shape
Stocks for Beginners

3 Growth Stocks I’m Buying in April

These three growth stocks are up in the last year, and that is likely to continue on as we keep…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Stocks for Beginners

3 TFSA Hacks That Could Make You a Millionaire

Do you want a $1 million without worrying about the tax bill? These TFSA hacks could help you become a…

Read more »

Early retirement handwritten in a note
Stocks for Beginners

These 2 TSX Growth Stocks Could Help You Retire Early

Buying these two TSX growth stocks can help you retire early by multiplying hard-earned savings in the long run.

Read more »