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

grow dividends
Tech Stocks

If This Fast-Rising Stock Isn’t Yet on Your Radar, it Should Be!

Here's why Constellation Software (TSX:CSU) remains a top TSX growth stock long-term investors ought to consider right now.

Read more »

Pile of Canadian dollar bills in various denominations
Stocks for Beginners

Up 94% in 2024! 3 Reasons Celestica Stock Is (Still) a Screaming Buy Today

Here are the top three reasons that could help Celestica stock continue soaring in the long run.

Read more »

Hands shaking over a business deal
Bank Stocks

National Bank to Buy Canadian Western Bank: What Investors Need to Know

National Bank of Canada (TSX:NA) is acquiring Canadian Western Bank (TSX:CWB) in a historic deal for Canadian banks.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

2 Magnificent Dividend Stocks I Plan to Add to My TFSA in June

Have you made your TFSA investments for June? If not, here are two dividend stocks you should consider adding for…

Read more »

Nuclear power station cooling tower
Dividend Stocks

Cameco Stock: An Excellent Uranium Play With Both Growth and Dividends

With clean energy demand continuing to grow, this stock might be a great long-term investment at current levels.

Read more »

edit Woman calculating figures next to a laptop
Dividend Stocks

Is it Too Late to Buy goeasy Stock?

Despite its monstrous gains, goeasy is a TSX dividend stock that trades at a compelling valuation in June 2024.

Read more »

Upwards momentum
Investing

A Bargain Stock That Looks Ready to Rip

Air Canada (TSX:AC) stock looks deeply discounted and ready to make up for lost time.

Read more »

cryptocurrency, crypto, blockcahin
Tech Stocks

1 Cryptocurrency Stock Soared 8% This Week, and it’s the Only 1 I’d Buy

Cryptocurrency stocks can be a dime a dozen, which is why this one stock stands out from the rest as…

Read more »