The Tax-Free Savings Account (TFSA) is an ideal way to put your cash aside for whenever you need it. While the Registered Retirement Savings Plan (RRSP) is a great for investing for retirement, obviously, the TFSA is great for pretty much everything else.
You can take out that cash if you need it during an emergency. You can save for your child’s education. You can use it to buy a house, a car, or, heck, a cottage if you can! And take it out at any time, tax free. The same cannot be said for an RRSP.
But a TFSA should still have a long-term goal in mind, and that means looking for long-term TSX stocks. Today, I’m going to focus on three you can always count on.
Royal Bank
The biggest bank by market capitalization among the Big Six banks is Royal Bank of Canada (TSX:RY)(NYSE:RY). With a market capitalization of about $178 billion, the Canadian bank has a long history of creating wealth for its clients and its investors.
Royal Bank stock continues to expand throughout the world, including emerging markets. Yet it’s supported by its wealth and commercial management sector. It recently boosted its dividend, offering a yield of 3.89%. Yet it’s still cheap trading at just 11.07 times earnings.
Shares are down 6% year to date but up 143% in the last decade. That’s a compound annual growth rate (CAGR) of 9.13%.
Canadian Utilities
If you want stability, one of the TSX stocks you need to consider is Canadian Utilities (TSX:CU). This is the only Dividend King on the TSX today, with 50 years of dividend growth behind it. That’s 50 years of growing through acquisitions, and finding new revenue streams within the utility and energy sector.
Yet again, the $10.6 billion company has seen shares dwindle over the past few months with the market correction. The company boosted its dividend most recently in February, which is consistent with the last few years, even with the pandemic and market downturn underway. Yet it remains a cheap buy, trading at 2.08 times book value.
Shares of this TSX stock are actually up 7% year to date but only 18% in the last decade, with some ups and downs along the way. But given its stable dividend, this is certainly a solid long-term buy.
Brookfield Renewable
It might seem like a poor time to get into renewable energy, given recent performance. But that’s simply not the case when it comes with long-term investors in Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP). The diversified renewable energy company offers assets in every clean energy area around the world.
Further, it has the history to back it up. The $28.67 billion company has been around for decades, supported by its parent company, which has been around since the 1880s! Brookfield Renewable offers a dividend of 3.5% and has an astounding future price-to-earnings ratio of 1,670!
With shares down 1.5% year to date, falling from all-time highs in January 2021, it’s a great time to jump on the stock. Even as it fights through soaring inflation. Long-term, clean energy assets are the future. You’ll continue to receive a solid dividend as shares grow higher.
Shares are up 196% in the last decade, with its dividend more than doubling in that time.
