TFSA Investors: 3 TSX Stocks With Unbelievable Staying Power

Are you looking for solid stocks to add to your portfolio? These three companies have unbelievable staying power!

| More on:

Image source: Getty Images

When looking for stocks to hold in a TFSA, it’s important that investors consider whether a company has staying power. For those that aren’t familiar with the term, it refers to a company’s ability to remain a solid business over the years. This is important to consider, because it can tell investors how a company could stack up against competitors, economic conditions, and so forth.

In this article, I’ll discuss three TSX stocks with unbelievable staying power. These three stocks could be excellent buys for your TFSA.

Buy one of the Big Five banks

When looking for stocks with impressive staying power, investors should first consider the Big Five Canadian banks. These companies have been in business for over a century, allowing them to establish very formidable moats over time. In addition, the nature of Canada’s highly regulated banking industry makes it even more difficult for smaller competitors to surpass these industry leaders. If I could only invest in one Canadian bank, it would be Bank of Nova Scotia (TSX:BNS)(NYSE:BNS).

This company is the third-largest Canadian bank in terms of revenue, assets, and market cap. Since its initial public offering (IPO), Bank of Nova Scotia stock has grown at a compound annual growth rate (CAGR) of 9.5% (dividends excluded). When dividends are considered, this company’s returns jump to more than 12%. Speaking of which, Bank of Nova Scotia has been paying shareholders a dividend since July 1, 1833. Since then, the company has never missed a dividend payment, representing 189 years of continued dividend distributions.

Consider this railway company

Much like the Canadian banking industry, the railway industry within our country is highly concentrated. As it stands, there are only two companies which operate a meaningful amount of track within the country. Of those two companies, Canadian National Railway (TSX:CNR)(NYSE:CNI) is, by far, the leader. It operates nearly 33,000 km of track which spans from British Columbia to Nova Scotia. That large reach has also helped Canadian National become one of the most recognizable brands in the country.

Since its IPO, Canadian National stock has grown at a CAGR of about 17.5%. That greatly outpaces both the rate of inflation and the broader market. Like Bank of Nova Scotia, Canadian National is also a tremendous dividend stock. Listed as a Canadian Dividend Aristocrat, this company has managed to increase its dividend in each of the past 26 years. In addition, Canadian National’s dividend is also growing at an impressive rate. It has a five-year growth rate of 12.2%.

This telecom giant should be in your portfolio

Finally, investors should consider Telus (TSX:T)(NYSE:TU) stock for their TFSA. One of the three large Canadian telecom companies, Telus operates the largest telecom network in the country. Its coverage area accounts for 99% of the Canadian population. Because of its major presence within that industry, and the firm grasp that the Big Three telecom giants have on the industry, I find it hard to believe that Telus could one day become obsolete.

Since its IPO, Telus stock has grown at a CAGR of 5.1% (dividends excluded). Investors should note that this company has a high dividend yield which would contribute to even greater returns if accounted for in the stock price. As of this writing, Telus stock has a forward dividend yield of 4.47%. Another Canadian Dividend Aristocrat, Telus has managed to increase its distribution in each of the past 18 years.

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 Jed Lloren has positions in BANK OF NOVA SCOTIA. The Motley Fool recommends BANK OF NOVA SCOTIA, Canadian National Railway, and TELUS CORPORATION.

More on Investing

A worker uses a double monitor computer screen in an office.
Bank Stocks

BMO vs. BNS: Which Bank Stock Is a Better Buy?

Let's explore whether Bank of Nova Scotia or Bank of Montreal is a better buy today seeing as they have…

Read more »

Going against the grain
Dividend Stocks

Contrarian Investors: 2 Discounted High-Yield Dividend Stocks for Passive Income

These top TSX dividend stocks now have 7% dividend yields.

Read more »

Dividend Stocks

Bank of Canada Rate Cuts: Best Stocks to Buy Right Now

These are the best stocks to buy with interest rates coming down. Don't just save money; start making it, too!

Read more »

Person holds banknotes of Canadian dollars

TFSA: How to Earn $4,750 in Tax-Free Passive Income Per Year

This strategy can help boost passive income and reduce portfolio risk.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Wednesday, June 19

Most TSX stocks could remain range-bound today as the U.S. stock markets remain closed for Juneteenth.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

2 of the Top Dividend Stocks in Canada

Here are two of the best buy-and-hold-forever dividend stocks in Canada you can bet on.

Read more »

calculate and analyze stock

This Is the Biggest Stock in My Personal Portfolio

Here's why I continue to buy shares of this S&P 500 index ETF whenever I can.

Read more »

Growth from coins

Got $2,000? Here Are 2 Beaten-Down Growth Stocks to Buy Right Now

Beaten-down growth stocks such as Aritzia and UiPath trade at a discount to consensus price target estimates.

Read more »