TFSA Investors: 2 Top Stocks to Buy in November and Hold Forever

Here are two of the best Canadian dividend stocks that could help you grow your TFSA wealth in the long run.

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The TFSA (Tax-Free Savings Account) brings financial discipline in life by making you save money each year. You can withdraw your hard-earned savings at a later stage whenever you need it. More importantly, the TFSA also gives you the freedom to invest your savings to earn tax-free returns and passive income.

In this article, I’ll highlight two of the best Canadian dividend stocks you can buy in November to safely grow your TFSA wealth in the long term. Let’s begin.

A top financial services dividend stock for your TFSA

When adding stocks to TFSA, you should always make sure that you avoid investing in companies with shaky financial ground and weak fundamental prospects. Doing so could significantly reduce the need for you to adjust your stock portfolio from time to time and keep your invested capital safe. Keeping that in mind, Manulife Financial (TSX:MFC) could be a great Canadian dividend stock for TFSA investors to buy now and hold forever. This Toronto-headquartered financial services firm currently has a market cap of $43.4 billion, as its stock trades at $23.05 per share with about 4.4% year-to-date losses. At the current market price, it has an impressive dividend yield of around 5.7%.

Despite being a Canadian company, Manulife makes most of its revenue from its Asia division. While growing macroeconomic concerns have taken a toll on its business growth this year, its long-term financial growth trends remain very strong. To give you an idea, the company’s adjusted earnings grew by a solid 66% in the five years between 2016 and 2021.

Apart from geographic and financial product diversities, Manulife Financial’s strong financial position and the large scale of its business make it an ideal stock to own in your TFSA for the long term.

And a top energy dividend stock

Before adding a dividend stock to your TFSA, you should pay attention not only to its annual yield but also its dividend-growth track record. And if you’re looking for a stock with an outstanding track record of dividend increases on the Toronto Stock Exchange, you should consider investing in Enbridge (TSX:ENB). This energy infrastructure and transportation giant currently has a market cap of $110.4 billion, as its stock trades at $ 54.52 per share with about 10% year-to-date gains. At this market price, ENB offers a very attractive 6.3% dividend yield.

Enbridge’s ability to weather tough economic times makes it stand apart from most of its peers. The underlying strength in its balance sheet and cash flows could be understood by the fact that the company has been increasing its dividend for 27 consecutive years. After the COVID-19 pandemic affected its financial growth in 2020, its earnings staged a spectacular recovery in 2021 by rising beyond pre-pandemic levels.

Besides its well-established energy transportation business, Enbridge is currently focusing on expanding its presence in crude oil exports and renewable energy segments. This factor should help the company’s earnings continue to grow in the long run, making it a great stock pick for TFSA investors to hold forever.

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.

The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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