TFSA Investors: Got $6,000? Here’s How to Power Up Your Portfolio

TFSA investors who still have room to contribute to their portfolios should consider top stocks like Great-West Lifeco Inc. (TSX:GWO).

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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.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alimentation Couche-Tard Inc.

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