2023 TFSA Contribution Room: Where I’m Putting it All!

This top tech stock is the perfect option for your TFSA contribution room, so although it’s down, don’t count it out.

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It’s a new year, and with it comes a new amount of Tax-Free Savings Account (TFSA) contribution room at $6,500. That’s $6,500 you can invest now and turn into even more returns, especially if you take the long-term approach to investing. And if you’ve been investing for a while, it may be that the only contribution room you have is that $6,500, making your decision a difficult one.

The best option is to turn that $6,500 into guaranteed income. That’s a difficult thing to find right now, but it’s definitely possible. In fact, there’s one stock I would consider putting all of your newly acquired TFSA contribution room.


It’s like the company wanted to make your choice so simple they put it in the name itself. goeasy (TSX:GSY) remains an easy choice for investors seeking a long-term investment in the tech space. True, the tech sector hasn’t done well. The tech-heavy Nasdaq continues to trade down 33% in the last year alone, after all.

And goeasy stock hasn’t exactly been immune. Shares of the company are down 38.77% in the last year, as of writing. So, it certainly doesn’t seem to be doing well. However, earnings tell a completely different story.

goeasy stock isn’t just doing well, it continues to achieve record levels of growth! Most recently, this included a record number of loan originations, at a time when interest rates are rising and loans are dropping! Loan growth climbed an incredible 117% year over year, with its loan portfolio rising 37% as well. So, why aren’t investors buying the stock?

Fear and more fear

The problem goeasy stock is going through is that it’s in the tech space. Not only that, goeasy stock was a company that soared during the tech boom during the last few years. This led to investors dropping the company like a stone when the tech sector dropped, wanting to take in their earnings before taking on losses.

Fair enough. However, it wasn’t fair to goeasy stock, which really didn’t deserve the drop! The company has proven for literally decades that it can weather the storm and, indeed, sail through it without an issue. It now has plenty of cash on hand to make even more growth opportunities for itself. In fact, it currently trades in value territory at just 11.19 times earnings.

What you get for $6,500

Let’s look at what you could possibly get by putting your TFSA contribution room towards goeasy stock. Because even though it’s a tech stock, it’s one that provides a dividend. That’s certainly a rarity right now. The stock currently has a yield at 3.42% to lock up, so you can look forward to cash from that. Let’s look at how much, and then compare how much income you could also receive should shares bump from where they are today at $106.64, back up to 52-week highs up $177.02.

GSY: Now$106.6461$3.64$222.04Annually
GSY: Highs$177.0236$3.64$131.04Annually

As you can see, as of writing, your dividends are almost $100 more than where they would have been at 52-week highs. Furthermore, should your 61 shares return to 52-week highs, that would increase your $6,500 to $10,798.22! Add in your dividends, and that’s total income of $11,020.26 by picking up this company when it’s down.

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 Amy Legate-Wolfe has positions in Goeasy. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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