Contributing to Your TFSA in 2022? Here Are 2 Top Stocks to Consider

Invest in these two safe stocks if you want to contribute to your TFSA in 2022.

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The Tax-Free Savings Account (TFSA) is an excellent investment tool that has provided Canadian investors the ideal opportunity to grow their wealth flexibly. Ideally, the tax-advantaged account is the perfect investment vehicle for long-term investors who want to buy and hold assets that can appreciate for several decades.

Any contributions you make to your TFSA are made through after-tax dollars. It means that the value of investments held in your account can grow without incurring any taxes. Growing your money without paying additional taxes on it as it grows is attractive enough on its own. Additionally, you can use a wise long-term strategy with discipline to accelerate your wealth growth by compounding it substantially.

TFSA investing comes with a limit, and you get more contribution room each year. You cannot invest a substantial amount all at once. Making contributions to your TFSA over time using high-quality investments can help you make the most of your TFSA.

Today, I will discuss two TSX stocks that you could buy and hold for the long run in your TFSA to enjoy safe and reliable long-term returns.

Enbridge

Enbridge (TSX:ENB)(NYSE:ENB) is a $115.99 billion market capitalization multi-national pipeline company headquartered in Calgary. The company is a massive player in the Canadian energy industry, having grown considerably over the years through strategic acquisitions and organic growth. The company boasts an extensive track record for delivering stellar growth.

The defensive stock is widely regarded as a reliable investment. Enbridge stock trades for $57.24 per share at writing, and it boasts a juicy 6.01% dividend yield. The recent pullback in its share prices coupled with the strength of the energy industry could provide it with a much-needed boost in the coming weeks.

Additionally, the company’s increasing investments in green energy make it an attractive long-term buy-and-hold asset to consider.

Dollarama

Dollarama (TSX:DOL) is a $21 billion market capitalization Canadian dollar store retail chain headquartered in Montreal. It does not operate in an exciting and high-growth industry like the energy sector, but that could precisely be the reason it makes for a strong TFSA investment.

The company is the largest Canadian retailer of items worth four dollars or less. It allows its consumers to spend less on essential goods compared to other retailers.

Dollarama stock trades for $71.97 per share at writing, and it boasts a meagre 0.31% dividend yield. The company’s ability to help consumers get essential shopping done at lower costs, especially during inflationary environments, could make it an ideal low-risk stock to own in environments like right now.

Foolish takeaway

Investing in healthy businesses boasting the potential to deliver strong and reliable long-term returns is one of the best ways to make use of your TFSA contribution room. Enbridge is a mainstay for many investor portfolios due to its massive economic moat and reliable long-term returns. However, the stock can deliver short-term volatility due to commodity price fluctuations.

Dollarama stock could be considered the pinnacle of stability, especially during inflationary environments. The business delivers relief to consumers bogged down by rising living costs by making essential supplies available at more accessible prices.

Both businesses appear to be strong, and it might be worth investing in Enbridge stock and Dollarama stock as long-term holdings in your TFSA for reliable returns.

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.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge.

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