TFSA Cash: Double it With 2 Under-$30 TSX Stocks

Now is an opportune time to put your TFSA cash to work and start investing in stocks offering solid growth in the long term.

| More on:

Image source: Getty Images.

As capital gains and dividend income are not taxed in a TFSA (Tax-Free Savings Account), investing in stocks through this route enhances the actual returns in the long term. Though the current macro environment and uncertainty related to it make investing tough, now is an opportune time to put your TFSA cash to work. 

TFSA investors can buy high-quality stocks cheap and stay invested for a considerable amount of time to gain from the appreciation in their price. Along the way, investors can make regular income through stocks that offer reliable dividends. 

So, if you plan to put your TFSA cash to work, consider investing in these under-$30 TSX stocks now to beat the market averages by a wide margin. 

Telus 

Telecom giant Telus (TSX:T)(NYSE:TU) is a solid investment to capitalize on the 5G trend and generate regular dividend income. Telus is known for consistently delivering profitable growth, enabling it to invest in growth initiatives and return higher cash to its shareholders. 

It continues to strengthen its competitive positioning through the accelerated broadband investment program. Further, its focus on expanding the PureFibre network, 5G capabilities, connectivity, and copper to fibre migration bode well for growth. These initiatives will drive its customer base, lower churn, improve operating efficiency, and support cash flow growth.  

Telus offers strong growth and a lucrative dividend yield of 4.6%. The company has paid about $16 billion in dividends since 2004. Further, through its dividend-growth program, Telus targets high-single-digit dividend growth through 2025. 

WELL Health 

WELL Health (TSX:WELL) offers digital healthcare services and growing its business rapidly. Despite concerns around its growth amid economic reopening, WELL Health has continued to deliver robust top-line growth on the back of solid organic sales and benefits from acquisitions. 

It continues to benefit from higher omnichannel patient visits. For context, WELL delivered record second-quarter (Q2) revenues (up 127% year over year), driven by a 49% increase in omnichannel patient visits. Given the strength in its business, WELL Health has raised its 2022 revenue guidance for the third time, which should renew investors’ optimism in its stock.

WELL Health has been delivering positive adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the past several quarters and expects to deliver positive adjusted net income in 2022. 

The ongoing momentum across online and in-person care channels will drive its organic growth. Further, the strength in its U.S.-based virtual patient services businesses will likely supplement its growth. 

Despite the ongoing geopolitical and inflationary pressure, WELL Health doesn’t see any challenges to its business. It expects to deliver revenues of over $550 million in 2022. Further, it expects to generate about $100 million in adjusted EBITDA. Overall, its robust omnichannel patient visits, focus on accretive strategic acquisitions, and strength in its base business provide a multi-year growth foundation.

Bottom line

Telus and WELL Health’s growth runway looks good, and these under-$30 TSX stocks are poised to deliver solid growth. Both companies’ businesses are growing fast, while they have multiple catalysts to fuel the next leg of growth.

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends TELUS CORPORATION.

More on Investing

edit Real Estate Investment Trust REIT on double exsposure business background.
Dividend Stocks

1 REIT That Pays a Monthly Distribution (With 6% Yield and 3.2% CAGR) 

It's a good time to buy REITs at a hefty discount to lock in higher passive income. This REIT pays…

Read more »

Businessman holding AI cloud
Tech Stocks

2 Stocks That Could Grow Your Portfolio Over the Next Decade

These two TSX stocks could be stellar additions to your long-term portfolio, given their multi-year growth potential and discounted stock…

Read more »

Wireless technology
Tech Stocks

These Tech Stocks Are Growing up to 138% Despite the Recession

Growth stocks like WELL Health Technologies (TSX:WELL) are thriving, despite the recession.

Read more »

close-up photo of investor Warren Buffett
Stocks for Beginners

New to Investing? Here’s 1 of Warren Buffett’s Most Important Quotes

As market uncertainty continues to intensify, here's some advice from the Oracle of Omaha to help you navigate this environment.

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Dividend Stocks

Want Easy Passive Income? Go With These 3 Canadian Dividend All-Stars

Are you looking for easy passive income? Here are three Canadian dividend all-stars.

Read more »

Man data analyze
Investing

3 of the Top-Growing Stocks on Earth

Canadians desperate for growth in a shaky market may want to look to growing stocks like Cardinal Health Inc. (NYSE:CAH).

Read more »

Nickel ore is mined from the ground.
Metals and Mining Stocks

Offset Market Volatility With a Shiny Investment

Looking to offset market volatility with a shiny investment you can hold for the long-term? Here’s a precious option to…

Read more »

grow dividends
Tech Stocks

BlackBerry (TSX:BB) Stock: The Best Buy for Your RRSP

BlackBerry stock is still falling after its quarterly result, despite a 28% revenue increase in its Internet of Things segment.

Read more »