The Canadian stock market has been extremely volatile lately. While the increased market volatility is making traders worried, it might not have a major impact on the potential return TFSA (Tax-Free Savings Account) holders can expect on their long-term investments. That’s why the ongoing market downturn could be an opportunity for TFSA investors to add some fundamentally strong stocks to their stock portfolios at a big bargain.
In this article, I’ll highlight two such oversold dividend stocks from the metals and mining sector that you can consider adding to your TFSA right now.
The first stock TFSA holders should buy today
SSR Mining (TSX: SSRM)(NASDAQ: SSRM) is a Denver-based precious metals company with multiple high-quality development and exploration assets across the Americas. Its stock currently trades at $25.42 per share with nearly 12% year-to-date gains.
In 2020, SSR Mining was one of a few Canadian mining companies that continued to register outstanding financial growth, despite COVID-related challenges. Its revenue for the year jumped by about 41% to US$853 million, and its adjusted earnings rose by 74% year over year to US$1.41 per share.
The company maintained a solid financial growth trend in 2021 as well as its adjusted net profit during the year increased by 88.5% YoY to around US$402 million, crushing analysts’ estimates of around US$351 million. Despite its solid financial performance in the last couple of years, this Canadian stock fell by about 10% in 2020 and 2021 combined, making it look cheap to add to your TFSA.
SSR Mining continues to impress with its operational outperformance in the ongoing year, with its Q1 top and bottom line exceeding analysts’ expectations. Its stock, however, hasn’t seen much appreciation, as it has fallen by nearly 17% in the last four weeks. While this Canadian stock’s dividend yield of around 1.4% might not look very impressive at the moment, its consistently strengthening financial position could allow the company to reward long-term TFSA investors with higher dividends in the coming years.
Another great stock for TFSA investors
Centerra Gold (TSX: CG)(NYSE: CGAU) could be another reliable Canadian mining stock for TFSA holders to buy now. The shares of this Toronto-based gold miner are trading with only 4% year-to-date gains at $10.31 per share after losing nearly 34% of their value last year.
On May 4, Centerra Gold announced its upbeat Q1 results, which made its stock rise temporarily before the broader market selloff pressurized it, erasing all those gains. During the quarter, the company produced just under 94,000 ounces of gold and about 20.6 million pounds of copper. As a result, Centerra posted US$295.2 million — about 23% higher than Street’s estimates. Similarly, its adjusted earnings for the quarter stood at US$0.19 per share against an expectation of US$0.15 per share.
As Centerra Gold continues to focus on productivity and cost efficiencies to lower costs further, its profitability is likely to improve in the coming years, which could keep its stock soaring in the long term. Apart from these improvements, its decent dividend yield of around 2.6% makes it even more attractive for TFSA investors.
