The TFSA is one of Canadians’ best and most advantageous vehicles for building wealth. However, it’s crucial to keep in mind and understand that the TFSA was made for long-term investing. Therefore, any TSX stocks you look to buy in your TFSA, you should be looking to buy and hold over the long haul.
And the best way to invest for the long haul is to find stocks that you don’t ever need to sell. These are high-quality businesses with dominant positions in industries that are crucial to our economy.
And if these companies are constantly growing, and especially if they are constantly paying dividends, investors can utilize the power of compound interest to grow their portfolios rapidly.
So, with that in mind, if you’re looking for top TSX stocks to add to your TFSA, here are two to consider today.
One of the top TSX dividend stocks to buy in your TFSA
Some of the best core TSX stocks to buy for your TFSA are large caps and massive blue-chip stocks with highly resilient operations. That’s why one of the best stocks I’d recommend investors look at adding to their TFSA is Enbridge (TSX: ENB)(NYSE: ENB), the massive energy giant.
Enbridge is a top TSX stock to buy for your TFSA for several reasons. First off, the energy industry in general is essential to our economy. Plus, Enbridge is at the heart of the North American energy industry. It transports nearly a third of all the oil produced in North America as well as 20% of all the natural gas consumed in the United States.
And that’s not even all of its operations, which is why it’s such a high-quality and reliable stock to own. And because its operations are so well diversified and so robust, Enbridge is, unsurprisingly, one of the oldest dividend-growth stocks in Canada, with over a quarter century of consistent dividend increases.
Therefore, with the stock offering an exceptional yield of 6.3%, there’s no question it’s one of the top TSX stocks to buy for your TFSA in this environment.
One of the best Canadian gold stocks
In addition to Enbridge, one of the top TSX stocks to buy if you’re looking to add gold to your portfolio is B2Gold (TSX: BTO)(NYSE:BTG).
Gold prices have a ton of potential to rally in the medium to long term. Therefore, with these stocks trading so cheaply today, they are some of the best to buy.
B2Gold, in particular, is an excellent investment to make because it’s one of the lowest-costs producers in the industry, giving it a crucial competitive advantage. If gold prices were to fall, it could remain profitable longer than its peers. And when peers are unprofitable, they will stop producing gold, impacting supply and eventually sending the price for gold back up.
Therefore, B2Gold is a stock that you can plan to own for the long haul, as its margins are exceptional. And today, while gold prices are still reasonably high, the company can earn attractive cash flow and even pay a dividend which currently yields roughly 5%. That’s extremely impressive for a gold producer.
Therefore, if you’re looking for top TSX stocks to buy for your TFSA or considering a safe-haven asset ahead of a potential recession next year, there’s no question that B2Gold is one of the best to consider today.
