This year, the annual contribution room for the Tax-Free Savings Account (TFSA) remained at $6,000. That brought the cumulative contribution room to a hefty $81,500. This applies to investors who were eligible for contributions from the January 2009 inception date. Today, I want to discuss how TFSA investors can look to spend the $6,000 in annual contribution room in early September in order to power up their portfolios. These stocks offer a nice combination of income production as well as capital growth potential. In this scenario, we’ll look to spend roughly $1,500 on the four stocks I’ll zero in on in this piece.
This dependable dividend stock belongs in your TFSA for the long haul
Great-West Lifeco (TSX: GWO) is a Winnipeg-based company that is engaged in the life insurance and financial services sectors. Shares of this dividend stock have dropped 19% in 2022 as of early afternoon trading on September 6. The stock is down 20% in the year-over-year period.
The company released its second-quarter (Q2) fiscal 2022 results on August 3. Total segment earnings were reported at $830 million in Q2 2022 — up from $826 million in the previous year. Great-West stock currently possesses a favourable price-to-earnings (P/E) ratio of nine. TFSA investors can also count on its quarterly dividend of $0.49 per share, which represents a tasty 6.4% yield.
Don’t be afraid to spend more of your TFSA room on this regional bank stock
Canadian Western Bank (TSX: CWB) is an Edmonton-based regional bank. This stock has plunged 34% in 2022 at the time of this writing. That has pushed the bank stock into negative territory compared to the previous year.
This bank released its third-quarter fiscal 2022 earnings on August 26. It posted total revenue growth of 3% to $272 million. Meanwhile, it reported total loans of $35.2 billion and deposits of $20.4 billion — both up 9% from the prior year. Shares of Canadian Western last had an attractive P/E ratio of 6.5, which should entice TFSA investors. It last announced a quarterly dividend of $0.31 per share. That represents a strong 5.1% yield.
Stash a defensive stock that can protect your portfolio with this option
Alimentation Couche-Tard (TSX: ATD) is a Laval-based company that operates and licenses convenience stores. Its shares have climbed 14% so far in 2022. The stock is up 17% year over year. Convenience stores have proven historically resilient in the face of economic turmoil. That makes Alimentation a solid defensive stock for your TFSA.
In the first quarter of fiscal 2023, the company reported adjusted net earnings of $875 million — up from $758 million in the previous year. Shares of Alimentation currently possess a favourable P/E ratio of 17.
Here’s a stock that could deliver big growth in your TFSA going forward
ATS Automation (TSX:ATA) is the fourth stock you should look to stash in your TFSA in the first half of September. This Cambridge-based company provides automation solutions to a worldwide client base. Its shares have plunged 22% so far this year.
TFSA investors on the hunt for growth should consider snatching up this promising stock right now. It released its first-quarter fiscal 2023 earnings on August 10. ATS Automation posted revenue growth of 19% to $610 million. Meanwhile, adjusted basic earnings per share rose to $0.64 compared to $0.48 in the previous year.
